JOHANNESBURG - The South African Broadcasting Corporation (SABC) on Thursday announced its annual results for the 2016/2017 financial year, confirming earlier reports that it posted a net loss after tax of R977 million during the year under review.
The embattled organisation said it experienced financial constraints owing to revenue streams deteriorating at a rate of six percent higher than the costs reduction.
Cash and cash equivalents as at the end of 2016/17 financial year were R82 million, compared to the previous year's R881 million. The broadcaster said this significant decrease in cash reserves had resulted in the SABC not being able to pay its debts as they fall due.
Revenue and other income for the period under review was R7.6 billion, compared to R8.1 billion in 2016, which is a six percent decrease year-on-year.
The SABC mainly derives revenue from the primary revenue stream of advertising which decreased by five percent to R5.6 billion, with sponsorships revenue also decreasing by 18 percent to R384 million, and TV license revenue decreasing by seven percent to R915 million.