The South African Broadcasting Corporation (SABC) has officially submitted its 2023/24 Annual Report to Parliament, marking a major achievement for the organisation. The Auditor-General has issued the SABC an unqualified audit opinion for the first time since the 2009/2010 financial year.
This positive audit outcome is a testament to the SABC’s dedication to sound financial practices and strengthening governance. Significant progress has been made in addressing and resolving audit qualifications, contributing to this accomplishment.
Reflecting on this achievement, Group Chief Executive Officer Nomsa Chabeli said, “I’m incredibly proud of this milestone in the SABC’s ongoing journey of recovery, renewal, and growth. Our unqualified audit opinion is just one of many recent successes, including our widely praised election coverage, the relaunch and growth of our SABC+ streaming platform, and new content partnerships with top global and local media players. The SABC remains an iconic media institution with the largest audience and geographic reach in South Africa. Backed by our 2025-2030 strategy, we continue to be the country’s most trusted media brand, delivering entertainment, education, and empowerment to our viewers.”
The financial highlights for this period are also notable, with revenue growing by 7%. However, the loss before interest and tax decreased by a remarkable 77%, down to $10 million from $47 million in the prior year.
Chief Financial Officer Yolande van Biljon commented, “Despite ongoing financial challenges, the SABC has remained committed to fulfilling its mandate. This formal statement from the auditor for the first time in 14 years underscores the corporation’s efforts to enhance internal controls, ensure compliance, and improve governance.”
Like many broadcasters worldwide, the SABC has faced challenges due to the migration of audiences to global streaming platforms. Audience share dropped from 46% in FY2016 to 46% in FY2021. This shift has impacted the organisation’s revenue streams, resulting in a $113 million decline since FY2016, with revenue remaining relatively flat since FY2021.
Another significant challenge is the ongoing decline in TV license fee revenue, exacerbated by changing viewing habits and economic pressures on households. Non-compliance with license payments has reached 85.6% in FY2024. The SABC is exploring new funding models for its public interest mandate.
Financial constraints have also limited the SABC’s ability to fully deliver on its content mandate for linear television. However, the continued growth of the SABC Plus streaming platform provides hope for future success. Additionally, all SABC radio stations have met 100% of their genre and local music quotas based on the Independent Communications Authority of South Africa’s requirements. The SABC News channel was the top-ranked news outlet in the country, both on free-to-air and satellite platforms, with over one billion YouTube views.
The SABC’s dedication to its role as a pillar of democracy is demonstrated through its thorough and unbiased coverage of the 2024 national elections. “The SABC plays a critical role in South Africa’s democracy by offering diverse political perspectives and sustained coverage,” said Chabeli.
In concluding remarks, Board Chairperson Khathutshelo Ramukumba extended his appreciation to the public and SABC’s stakeholders. He noted, “The commitment of our executive team and staff is starting to show positive results. We are optimistic that the SABC will continue progressing as we execute crucial strategies and reinforce the organisation.”
