Profit Wheels Are Turning

TO SUBSCRIBE TO CAPE BUSINESS NEWS ISSN 1028-1215 SMS Subscribe to 31013 FOUNDED 1980 National Distribution SEPTEMBER 2018 Another fishing Balloon payments Flight simulator deal challenges resolved 2020 Scramble for 3 15 Firmware to the 31 rights. Another road to debt? rescue. Woolworths Profit wheels are turning + UNICEF for the year - which was heavily impacted by a 30% rise in the fuel price and further = improved exacerbated by the 9% across the board wage determination and a 13% hike in the children’s overtime rate. Meyer said the additional costs were partly offset by improved fuel nutrition efficiencies derived from the company’s ongoing fleet recapitalisation and the reduction of excessive positioning and dead kilometres. He said the recapitalisation of the GABS fleet, the harnessing of new technologies (aimed at achieving extended bus life- cycles) and increasing the thresholds of fuel and lubricant usage complimented the range of cost containment measures. Meyer stressed GABS’ resilient performance was supported by a range of train- OOLWORTHS has an- ing and development initiatives aimed at nounced a new partner- driving efficiencies across the value chain. Wship with UNICEF South “This is testimony to the company’s central Africa to help increase South African philosophy of growing its own timber.” children’s access to good nutrition. He argued this was tangibly demonstrat- In line with its aim to support in- ed by the provision of 16 840 training days novative, scalable programmes, the NEW transport juggernaut – driven as feeder routes in Atlantis and the Cape to its employees – which laid the founda- retailer has committed by some impressive growth engines Town CBD. tion for 52 internal promotions during the R4 million over the next 3 years A- has been assembled in Cape Town. HPLR also holds a 33.3% stake in reporting period. working in partnership with UNI- Recently new look Hosken Passenger Sibanye Bus Services – a joint venture Meyer said GABS’ new R30 million CEF to roll out a pilot programme, Logistics & Rail (HPLR) was launched and between GABS and two emerging bus op- Training and Recruitment Centre was to improve nutrition for children listed on the JSE with a market value of erators - Abahlobo Transport Services and completed recently. “GABS is poised to in 50 under-resourced schools in some R1.4bn. Siyakhula Bus Services. The Sibanye ven- entrench the facility as a centre of driving Gauteng. The largest engine in HPLR is Golden ture operates 48 buses and provides ser- excellence and a channel for developing In partnership with the Depart- Arrow Bus Services (GABS), the Group’s vices from Atlantis to the Cape metropole. skills and competencies that are allied to ment of Basic Education, the pro- major subsidiary that has a history of Arguably the most intriguing part of the commuter bus industry.” gramme will benefit around 50,000 passenger services in Cape Town for HPLR is a 33% stake in the N2 Express He said an application to become an learners in selected disadvantaged generations. Joint Venture – a partnership between accredited Assessment Centre during the primary schools that participate GABS is a formidable operation with GABS and Mitchells Plain (Route 6) and current financial year would broaden the in the National School Nutrition over 1000 buses serving more than 3 100 Khayelitsha (Codeta) taxi operators. Centre’s service offering and effectively Programme (NSNP). This initia- routes in metropolitan Cape Town dur- The joint venture is contracted to oper- position it as an additional conduit for rev- tive aims to improve the capac- ing peak hours, and covering a total area ate a MyCiTi service with 40 buses from enue generation. ity of about 100 Volunteer Food of about 2460 square kilometres. Another Khayelitsha and Mitchells Plain to the Meyer said the much anticipated roll-out Handlers, who are local commu- mind blowing statistic from the HLIR an- Cape Town CBD. of the Automated Fare Collection (AFC) nity members to prepare balanced nual report is that the GABS fleet travels HPLR pointed out that the current con- system proceeded according to project school meals for children under 61.5 million kilometres, conveying 55.4 tract expires in May next year, after which timelines and the expected results of the safe and hygienic conditions. Ad- million passengers annually (at a rate of a long term contract will be negotiated with system should be fully realised during the ditionally, learners in these schools approximately 220 000 per week day). the City of Cape Town. financial year ahead. will be taught about good hygiene HLLR is also home to ElJoSa Travel and HPLR CEO Francois Meyer said the The AFC system provides for the selling practices including the importance Tours, a 76% owned subsidiary that oper- performance of the main subsidiary GABS and updating of contactless smart cards at of handwashing with soap before ates 32 luxury and semi-luxury coaches in for the year to end March was grounded in various points, controlling both cash fares eating. The NSNP currently feeds the schools, intercity and tourism markets. its operating division having maintained a and smart card validation aboard buses. over 9 million learners a hot cooked Then there is the 50.6% stake in Table consistent 97% efficiency ratio of sched- Meyer added that the system would allow meal daily. Bay Area Rapid Transit (TBART), which uled trips departing depots according to for the capturing of invaluable ridership “UNICEF is playing a vital role has been an official MyCiTi Vehicle Oper- the official timetable. data - which will highlight route and trip in South Africa and throughout ating Company (VOC) for the City of Cape “This has distinguished GABS as a efficiencies. “This will ensure that service Africa to address nutrition and hy- Town since 2013. reliable and compliant operator of public TBART primarily operates the trunk transport services in the metropole.” Continued on P2 Continued on P2 service along the Atlantic seaboard as well GABS posted a 2% increase in profit We carry a wide range of stainless steel grade 316 Maritime Fasteners best service | competitive price | high stock availability Stainless steel grade 316 Maritime 2 CBN September 2018 IN THIS ISSUE High noon for Sherrif at eMedia IT looks like make movie channels, eMov- social media platforms 14 Financial Services or break for e-Media ies and eMovies Extra like Twitter and Insta- Holdings, the Cape had performed well. gram as well as a pro- 17 Building & Construction Town-based free-to-air “The introduction of prietary app. television broadcaster new movie titles be- Van der Veen said 20 Civil Engineering & in the next three years. ing premiered on further investment in At the time of go- these channels has en- content would see the Infrastructure ing to press CEO An- hanced the offering for launch of a two hour dre van der Veen had movie lovers.” block of Afrikaans pro- 24 Sustainable Business unexpectedly resigned Van der Veen said gramming on eExtra as CEO after barely the Openview offering and the introduction of Practice a year in the hot seat. was further enhanced new lifestyle and enter- It was hardly the most by the introduction of tainment channels on 27 Instrumentation convenient juncture for Kwesé Free Sports and Openview. Van der Veen – who Openview currently a multi-channel and the launch of eBella (a Van der Veen ex- built a formidable rep- broadcasts a number multi-platform strategy female-skewed drama plained that while 29 HVAC utation in developing of channels – includ- – obviously tailored for and reality channel pro- these programmes and alternative gaming of- ing e.TV’s multichan- local viewers – should duced by the e.tv multi- channels would be loss 30 Hydraulics & ferings and for extract- nel offering; eMovies, enable the group to channel business) in making in the begin- Pneumatics ing value from liquor eMovies Extra, eExtra, provide valuable ad- March this year. ning, they were part of group KWV - to step eBella and eToonz. vertising opportunities Statistically, Open- the content required away from eMedia. The scoreboard re- for marketers. view is South Africa’s to promote set-top box 32 IDZ Over the last two flects that Openview In other words a fastest-growing satel- uptake and viewership. decades e-Media’s (inclusive of the e.TV heck of a lot hinges on lite television platform. He pointed out that 34 Waste Management mainstay operation multi-channel busi- Openview finding prof- Van der Veen dis- Openview currently at- e.TV has racked up re- ness) earned advertis- itable traction…and closed that Openview tracted about 3,5% of 36 On the Contrary markable success – fill- ing revenue of R60 fairly quickly too. set-top box activations the television audience ing the gap for viewers million and incurred New CEO Sheriff – grew at an average of in South Africa and 36 The Other Side of who were not attracted content costs of R173 who is fortunately an 35 000 per month. This break-even was esti- to SABC’s offering but million. Operating old hand in the fast meant that at the end of mated to be in the re- the Coin found Multichoice’s costs including retail moving media sector - March this year a total gion of 6%. This figure, DSTV satellite bou- subsidies – topped will need to come out of 1 149 217 (778 493 in undoubtedly, will be quet too pricey. R255 million, and the guns blazing. Sheriff 2017) set-top boxes had foremost in the mind of The launch of 24 net operating loss of previously served as been activated. new CEO Sherrif. hour news channel Openview totalled deputy CEO, and is the Van der Veen On the technical eNCA a few years ago R367 million (R394.5 most experienced tele- stressed eMedia would front, Openview aims Profit wheels are also enhanced pros- million in 2017).

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