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HCI EARNINGS HIT BY MIDI TV LOSSES

27 Jun General

Hosken Consolidated Investments (HCI) profited from its investment in Vodacom in the year to end-March, but losses from Midi TV put a damper on its performance. The group reported a nine-fold increase in attributable earnings to R347,6m for the year, compared with R37,8m previously but it suffered a headline loss of 21,9c a share, compared to a loss of 8,4c the year before. The group blamed the equity-accounted losses of Midi TV for the earnings setback. Midi experienced an ‘exceptionally difficult year’; forcing HCI to bring in a more experienced management team. HCI still maintains that the investment will generatehighly satisfactory returns in time but expects to incur further substantial losses for the next two years. HCI’s biggest investment, a 5% stake in Vodacom, contributed positively to its earnings. The group bought the stake for R390m in 1997 and it is presently valued at R2,9 billion. HCI also have investments in media, information technology, financial services, gaming and entertainment. HCI’s net asset value per share increased by 70% from R5,67 in June 1999 to R9,65.

Source: Business Report