The South African Broadcasting Corporation (SABC) has achieved its first unqualified audit opinion in 14 years.
The milestone in terms of the Auditor General of South Africa audit outcomes was revealed when the public broadcaster tabled its Annual Report in Parliament for the financial year 2023/24.
“For the first time since the 2009/2010 financial period, the corporation has obtained an unqualified audit opinion. The unqualified audit opinion was made possible by the focused attention to financial disciplines and to institutionalising good governance throughout the corporation.
“The success of this process is evidenced by the number of audit qualification areas that have been successfully addressed and consistently adhered to,” the SABC said on Sunday.
SABC Group Chief Executive Officer Nomsa Chabeli said the unqualified audit opinion follows a number of recent achievements including the much-lauded election coverage, the relaunch and rapid audience growth of our SABC+ streaming platform as well as the corporation’s content partnerships with leading global and local media houses.
“I am proud that the SABC has achieved another significant milestone on our journey of recovery, renewal and growth.
“The SABC is an iconic broadcast media asset in South Africa, with the largest audience and geographic reach. Re-invigorated and focused behind our new 2025-2030 strategy, we continue to be South Africa’s most trusted media brand as we entertain, educate inform and empower our audiences,” Chabeli said.
Other key financial highlights during this period included:
• An increase of 7% of advertising revenue from the previous financial year.
• A decrease of 4% of total operating expenses when compared to the prior year.
• A decrease of 77% of the loss before interest and tax of R192 million from R827 million in the previous year, and
• The cost of the unfunded public interest mandate is estimated to be R834 million. Securing government funding for this mandate remains an important priority for the SABC and is an important priority area in the SABC Bill currently under review.
• The 10-year trend reflects the net loss before interest and tax having improved from a low of R1 1143 million in FY2017 to R192 million in FY2024. In addition, the loss before interest and tax decreased by R634 million, year on year between FY2023 and FY2024.
SABC Chief Financial Officer Yolande van Biljon said despite financial sustainability challenges, the corporation executed its mandate diligently and passionately.
“Achieving an unqualified opinion, a first in 14 years, reflects the strategic journey the SABC has undertaken to strengthen its internal control environment, its compliance with legislation, expenditure management, governance and oversight,” van Biljon said.
The SABC said its audience share has been impacted by the migration of audiences to global streaming platforms, which is in line with broadcasters around the world.
“A decline in audience share from a high of 46% in 2016 continues to negatively impact the SABC’s ability to grow its revenue streams. This is illustrated by the R2 billion decline in revenue since FY2016, whilst revenue year on year has remained mostly flat since 2021.
“Another global trend felt locally by the SABC is a decline in TV license fee revenue. This continues on a downward trajectory despite numerous innovative initiatives that continue to be rolled out.
“As audiences migrate to consuming content across a range of screens other than television screens, the relevance of this form of license fee continues to be questioned by media experts as well as by the public,” the SABC said.
Levels of license fee non-compliance have continued to decline as households view it as a low priority in times of economic hardship and the reality is that compliance cannot be enforced.
The non-compliance rate increased to 85.60% in 2024.
“Going forward, focused attention will continue to be directed towards new equitable financial models for funding the SABC’s public interest mandate.
“The impact of actuarial valuations on post-employment benefits since 2020 has given rise to the negative equity reported in the statement of financial position as of 31 March 2024.
“The SABC’s ability to meet its obligations in the next 12 months remains a material uncertainty and requires the ongoing implementation of severe austerity measures including but not limited to the suspension of more than 80% of the long-term capital plan and a limitation of investment in content.
“It must be noted that virtually no funding is currently available for any capital investment in innovation, infrastructure and technology,” the SABC said. - SAnews.gov.za
