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AME Shines with 8% Revenue Surge and 63% EPS Growth in FY2024 | Rateweb
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AME Shines with 8% Revenue Surge and 63% EPS Growth in FY2024

African Media Entertainment Limited (AME) has reported a stellar financial performance for the year ended 31 March 2024. The company, listed on the Johannesburg Stock Exchange (JSE) under the code AME, has achieved significant growth across key financial metrics. This article delves into the details of AME’s financial performance, highlighting the key drivers behind their success.

Revenue and Profit Growth

AME’s revenue surged by 8%, reaching R290.1 million, up from R268.7 million in 2023. This increase can be attributed to the company’s strategic initiatives and robust market presence.

Operating Profit and Net Profit Before Tax

The company reported a 22% increase in operating profit, which climbed to R56.9 million. This improvement in operating efficiency reflects AME’s successful cost management and operational strategies. Additionally, the net profit before tax saw a remarkable 36% increase, reaching R76.7 million.

Profit Attributable to Equity Holders and Headline Earnings

The profit attributable to equity holders grew by an impressive 51%, amounting to R55.4 million. Similarly, headline earnings also increased by 52%, reflecting the company’s strong financial health and profitability.

Earnings Per Share (EPS) and Headline Earnings Per Share (HEPS)

EPS rose by 63% to 792.3 cents, while HEPS also increased by 63% to 792.2 cents. These figures underscore AME’s effective earnings growth strategy and solid financial performance.

Dividend Declaration

AME’s board declared a final dividend of 350 cents per ordinary share (gross) for the year ended 31 March 2024. The dividend is subject to a 20% Dividends Withholding Tax (DWT). Shareholders exempt from DWT will receive the gross dividend amount, while those liable for DWT will receive a net dividend of 280 cents per ordinary share.

Key Financial Metrics

MetricFY2024FY2023% Change
RevenueR290.1 millionR268.7 million+8%
Operating ProfitR56.9 millionR46.6 million+22%
Net Profit Before TaxR76.7 millionR56.4 million+36%
Profit Attributable to EquityR55.4 millionR36.7 million+51%
EPS792.3 cents485.5 cents+63%
HEPS792.2 cents485.5 cents+63%
Dividend350 cents350 cents

Factors Contributing to Strong Performance

Strategic Initiatives and Market Expansion

AME’s strategic initiatives and market expansion efforts have significantly contributed to its financial success. The company’s focus on enhancing its radio footprint across central South Africa and the Eastern Cape has paid off, leading to increased revenue and profitability.

Cost Management and Operational Efficiency

Effective cost management and operational efficiency have been key drivers of AME’s improved performance. The company has successfully optimized its operations, resulting in higher operating profits and net profits before tax.

Innovative Advertising Solutions

AME has embraced innovative advertising solutions to attract and retain clients. This approach has not only boosted the company’s revenue but also enhanced its market competitiveness.

Robust Financial Management

AME’s robust financial management practices have ensured strong financial health and sustainability. The company’s prudent financial strategies have led to impressive growth in key financial metrics, including EPS and HEPS.

Dividend Policy and Shareholder Returns

AME’s dividend policy reflects its commitment to delivering value to shareholders. The declaration of a final dividend of 350 cents per ordinary share demonstrates the company’s strong financial position and its ability to generate consistent returns for shareholders.

Conclusion

African Media Entertainment Limited’s financial performance for the year ended 31 March 2024 is a testament to its strategic vision and operational excellence. The company’s impressive growth in revenue, profit, and earnings per share underscores its successful market presence and robust financial management. With a focus on innovation, cost efficiency, and strategic market expansion, AME is well-positioned for continued success. Shareholders can look forward to sustained value creation, supported by the company’s strong financial health and commitment to delivering consistent returns.