In an annual report presented to Parliament, the South African Broadcasting Corporation (SABC) unveiled a staggering R1.13 billion loss for the 2022/23 fiscal year. This marked a sharp reversal from seven years of improving net losses, resulting in a 7.9 percent drop in revenue compared to the previous year and a 27 percent deficit against budget projections.
The broadcaster's cash reserves also plummeted by a substantial R709 million, translating to a 60 percent decrease from the prior year's R300 million. Various factors, both internal and external, contributed to this significant underperformance. These factors include disappointing audience ratings, the impact of analogue switch-offs, power outages, the inability to monetize sports and other content effectively, and a growing trend of TV license non-compliance.
Furthermore, the SABC faced challenges in meeting its public service mandate, with unfunded costs amounting to R817 million for the 2022/23 financial year. Government funding accounted for only approximately three percent of its revenue streams, further straining its financial results. Despite these financial challenges, the SABC maintained its position as a dominant player in the media sector, boasting millions of viewers and listeners.
The broadcaster also celebrated the launch of its streaming app, SABC Plus, and the successful revival of the Metro FM Music Awards during the year. The SABC acknowledged that it had diligently implemented activities outlined in its Turnaround Strategy, except for those aimed at revenue improvement and legislative changes, which had yet to translate into improved financial results. Consequently, the Auditor General of South Africa expressed concerns about the SABC's ability to maintain its Going Concern status, issuing a Disclaimer Opinion.
The SABC's new Board of Directors, appointed after six months without any active one, prioritised stabilising revenue generation and implementing various interventions. While these efforts are gaining momentum, the broadcaster manages its resources cautiously to meet its financial obligations and fulfil its public service mandate.
Looking ahead, the SABC anticipates positive developments in the legislative environment with the Cabinet's approval of the SABC Bill. This, coupled with promising results from SABC Plus and preparations for the 2024 national elections, has instilled confidence in the corporation's ability to achieve financial sustainability and growth.
In a related local context, it is worth noting that Mo Media Newspaper recently reported on the sale of the former Bophuthatswana Broadcasting Corporation's block of flats in Mmabatho Unit 7 at a public auction. These flats have remained vacant for over two years, raising questions about the SABC's property management practices in light of its reported financial losses.
