eMedia, the South African television broadcaster behind eTV and eNCA, has reported a post-tax profit of R315 million ($17 million) despite a 1% decrease in advertiser spending in the country.
The company’s overall revenue reached R3.1 billion ($168 million), with advertising revenue contributing R2.1 billion ($114 million), or 70% of total revenues. This marks a 3% increase in advertising revenue from the previous year, the highest the company has ever recorded.
Despite challenges such as load shedding, cord cutting, and competition from internet advertising, TV advertising remains a lucrative business for broadcasters like eMedia. Advertisers are willing to pay at least R1,100,000 ($60,000) for 170 placements, or “spots,” of a 30-second ad. These costs can increase significantly for ads running exclusively during prime-time slots, weekdays between 6:00 pm and 11:30 pm.
eMedia has solidified its market leadership with a 33.5% prime-time market share across its channels. eTV recently surpassed the state-owned SABC1 to become South Africa’s leading prime-time television channel, achieving a 20.7% prime-time market share. The remainder of eMedia’s channels accounted for 27% of the company’s advertising revenue, totaling R611 million ($33 million).
Load shedding, a persistent issue in South Africa for over a decade, poses a significant challenge for TV broadcasters. Advertisers are hesitant to invest heavily in ad slots that may not reach their intended audience due to blackouts. According to Statista, TV ad spending in South Africa is projected to grow by only 1.4% annually by 2029, reaching revenues of $547 million.
Despite these obstacles, eMedia’s strong performance underscores its resilience and ability to navigate a challenging advertising landscape.