While the group operated in a challenging business environment in 2010, it continued to cement the diversification benefits during the year. The Broadcasting segment once again defended its position despite pressure on advertising spending. Acceleration Media and Gloo Digital Design were moved into a separate segment, New Media, positioning them to deliver on their inherent potential. Their performance in 2010 exceeded expectations. Urban Brew Studios, which was acquired in the previous financial year, is deriving benefits from synergies with the group's media assets.
At the same time, Kagiso Media continued its journey of strategic delivery, with the MSN deal being a significant step forward. Accessing the growing markets in Africa remains a strategic priority and Kagiso Media is committed to participating in the development of the African media landscape. However, during 2010 the group did not aggressively pursue growth opportunities on the continent, instead focusing on core markets in South Africa. It prioritised the resolution of the challenges in its African operations. In the longer term though, the group remains open to expansion in Africa through partnerships and leveraging Urban Brew Studios' positioning on the continent.
Kagiso Media is the pre-eminent black-owned player in the South African media landscape, and it has garnered the experience and capability to compete on an equal footing with the established local industry giants. Although still largely viewed as a niche player, it aims to become a dominant black-owned media company in Africa. The group's pedigree, as part of Kagiso Trust Investments, means resolute commitment to the highest ethical standards in all its business dealings. In the current politicised South African business climate, this stands Kagiso Media in good stead to achieve its objectives.
The rapid pace of change in the global media industry is driven largely by technology. While this is equally true in South Africa, the award of new radio licences and the migration of the television platform to the digital format continue to be mired by delays. Kagiso Media is eager to participate in these opportunities, either on its own or through mutually beneficial partnerships.
Corporate Governance and Board of Directors
While Kagiso Media welcomes the introduction of the King Report on Governance for South Africa 2009 (King III), the group's culture has always been one of self-regulation and setting ourselves, and indeed living to, the highest standards of corporate governance rather than approaching compliance as a legal obligation and "box ticking" exercise. The board has evaluated the implications of King III, including a gap analysis, which highlighted areas which require attention in 2011 in order to be compliant with the recommendations.
Mr MJN (JJ) Njeke resigned from the board of Kagiso Media on 30 June 2010. The board thanks him for his contribution to the group during his 13-year tenure and wishes him well in his future endeavours.
On 1 April 2010 Mr Mervyn van Zyl was appointed as the financial director of Kagiso Media. He comes from LexisNexis South Africa, which is 50% owned by the group.
Mr Kgomotso Matseke joined the board as a non-executive director with effect from 1 July 2010.
With effect from 24 November 2009, Mr Dumisani Mtshali was appointed as the company secretary of Kagiso Media in terms of a board decision to separate the secretarial function from that of the financial director.
Acknowledgements
I wish to thank the board of directors for their continued support in guiding Kagiso Media along the journey to unlock its strategic potential.
The executive team is to be commended for its success in ensuring that Kagiso Media delivered a solid operating performance while continuing to position the group strategically for the future.
The board thanks Mr Patrick Kane for his contribution while he steered the financial department until April 2010 when a new financial director was appointed at Kagiso Media.
The impact of the ongoing commitment and dedication of every staff member must not be underestimated. It is during tough times such as those we experienced in 2010 that an organisation demonstrates its true mettle. I extend my gratitude to the staff across Kagiso Media for their commitment and dedication during the year and for their role in achieving the significant successes during the year.
Maud Motanyane
Independent non-executive
Chairperson
