SABC rakes in R316 million from state ads

19 July 2016 - 10:00 By Bekezela Phakathi, © BDlive 2016

The SABC made R316-million in advertising revenue from national and provincial government departments and municipalities in the 2015-2016 financial year, Communications Minister Faith Muthambi has disclosed. But it seems likely that the troubled broadcaster will post a R500-million loss when its results are tabled in parliament in September.The SABC receives the bulk of its revenue (85%) from advertising, 3% from the government and 12% from TV licence fees.The broadcaster has faced numerous acute problems in recent weeks related to financial, personnel and management problems.In reply to a question from the DA in parliament yesterday, Muthambi said SABCTV had received R39-million in advertising revenue from government departments and municipalities in the 2015-2016 financial year.But the public broadcaster's radio stations were the real cash cow, receiving R277-million in advertising revenue from state departments and municipalities over that period."These were campaigns to create awareness about services the respective departments provide to the nation," said Muthambi.In the 2014-2015 financial year, the SABC's advertising revenue grew 7% to R5.5-billion.The Financial Mail reported last week that more than R500-million had been wiped off the SABC's bank balance in the past three months as it struggled to contain a ballooning wage bill. The broadcaster planned to ask the banks for a R1.5-billion bail-out.The SABC's plummeting balance is largely due to declining advertising revenues, bloated fixed-employment costs of almost R3-billion a year and a fall in TV licence fee collections. ..

There’s never been a more important time to support independent media.

From World War 1 to present-day cosmopolitan South Africa and beyond, the Sunday Times has been a pillar in covering the stories that matter to you.

For just R80 you can become a premium member (digital access) and support a publication that has played an important political and social role in South Africa for over a century of Sundays. You can cancel anytime.

Already subscribed? Sign in below.



Questions or problems? Email helpdesk@timeslive.co.za or call 0860 52 52 00.