Media Institute of Southern Africa : Promoting Media Diversity . Pluralism . Self-Sufficiency . Independence

During the year a new board was appointed at the national broadcaster and wide-ranging improvements to the systems and processes at the corporation were made. Production of local programming and programming in local languages was boosted.

The corporation also expanded its transmission footprint in television and radio to reach more under serviced areas. It now reaches over 20-million South Africans through 18 radio stations and four television stations, who spend an average of three hours per day watching SABC TV and 22 hours listening to SABC radio. Advertising spending for radio and television is at 46%.
Over the last year it also became the first SA broadcaster to launch a 24-hour news channel - SABC News International broadcasts across Africa on the Vivid platform. The news service also opened a number of international news bureaux.

At the same time, the corporation actively engaged in the digital terrestrial television migration project to ensure it is able to transform its broadcast technology along with the rest of the industry. The SABC is ready to transform its technology to digital standards if the cost implications can be negotiated with the shareholder.

In addition, various risk and governance processes were implemented, improving the governance of the corporation.

Financial health
The SABC reported an operating profit for the year before the impact of the pension fund and medical aid costs of R111,3 million, compared to R182,8 million the year before. Profit after tax was R321,2 million, due largely to the recognition of a R420,8 million pension fund surplus, a cost of R144,5 million to fund post retirement medical aid obligations and a R89,4 million contribution to the pension fund. Profit after tax in 2007 was R192,8 million for the group.

The corporation reports good growth in revenue, particularly in commercial advertising, which grew 14% to R3,1 billion. Advertising accounted for 81% of total revenue. A further R568 million of commercial revenue was generated from sponsorships and other revenues. Sponsorships, however, disappointed, with a 9% fall on 2007's revenue. This was due to the decrease in aired sports events, following the loss of rights to broadcast games in the Premier Soccer League. TV licence revenue grew 8%, although the licence fee has not been increased for a few years. Government transfers were 10% lower than in 2007. Overall, revenue increased by 10% to R4,7 billion.