EXHIBIT 99.1
MIH Group announces preliminary results
for year ended 31 March 2000
Holland, Amsterdam, 28 June 2000 - Today MIH Group, (NASDAQ & AEX ticker:
MIHL), the international television, Internet and interactive technology
Group, announces results for the financial year ended 31 March 2000.
Financial and operational highlights:
o Revenues for the year increased by 19.0% to US$ 723.4 million (1999: US$
607.9 million).
o Achieved positive Group EBITDA of US$ 3.8 million (1999: US$ 13.6
million), after incurring increased development costs in the Internet and
technology businesses which were offset against positive growth in EBITDA
from the television platforms.
o MIHL listed on the Nasdaq National Market (NASDAQ) and on the Amsterdam
Stock Exchange (AEX) through an Initial Public Offering (IPO) of 10.4
million shares, raising US$ 187.9 million, before expenses. Subsequent to
year end, the Group raised US$ 180.4 million, before expenses, through a
follow-on public offering.
o NetMed, secured a Greek digital licence and successfully launched the
NOVA bouquet in December 1999, quickly growing its digital subscriber
base to 18,462 subscribing households.
o A new Internet segment was launched through investments in leading
Internet businesses in Africa, Thailand and China, providing Internet
access, local content, e-commerce and customer care.
o OpenTV strengthened its position as the world leader in interactive
television operating systems software and applications development,
ending the financial year with its software installed in over 7.8 million
set top boxes world-wide.
o OpenTV formed strategic alliances with leading Internet, broadcast and
broadband companies, including America OnLine, General Instrument
Corporation, Liberty Digital, News Corporation, Time Warner and EchoStar
Communications. In November, the Group listed OpenTV on the NASDAQ and
the AEX through an IPO of 8.6 million shares, raising US$ 172.5 million,
before expenses.
o OpenTV extended an offer to acquire Spyglass Inc., whose technology
complements OpenTV's existing product offering with full Internet
browsing functionality. In addition it brings a comprehensive suite of
narrow footprint wireless technologies.
<PAGE>
2
Segmental Analysis:
Business Sales EBITDA
Segment US$ US$
millions millions
----------------------------------------------------
Television
Platforms 746 46
Technology:
Mindport 72 (10)
OpenTV 31 (15)
Internet 25 (36)
Adjustment (150) (18)
Commenting on the results Cobus Stofberg, MIH Group's Chief Executive and
OpenTV's Chairman, said:
"Last year was an exceptional year for the Group which saw a great deal of
change including the listings of MIHL and OpenTV and the restructuring of the
business into three principal business segments: television platforms,
technology and the Internet.
"We have also invested in several growth opportunities, particularly in South
East Asia and China which are key focus areas in our Internet strategy.
"The Group is intent on rapidly developing its businesses in the fields of
Internet and technology. The board is of the view that this strategy - which
will result in the group continuing to incur substantial development losses as
a consequence of growing its businesses - is important in building sustainable
shareholder value over the longer term.
"Technology is changing the lives of businesses and people all over the world
presenting MIHL with many challenges and opportunities. With the wealth of
experience and talent within the Group we are well placed to maximise new
opportunities, unlock revenue potential and deliver an unrivalled range of
e-services to the home.
Ends
Enquiries:
Investors/Financial Media Business/General Media
Beverley Branford Anne Marie Bell
VP Investor Relations VP Corporate Communications
Tel: +31 23 556 2636 Tel: +31 622 471 393
[email protected] [email protected]
Websites:
www.mih.com www.ubctv.com
<PAGE>
3
www.mweb.com www.opentv.com
www.mindport.com www.multichoice.co.za
www.irdetoaccess.com and greek website
Disclaimer: This news release contains forward-looking statements relating to
MIH Limited that involve risks and uncertainties that could cause MIH
Limited's actual results to differ materially from those contemplated herein,
including but not limited to, the risk factors detailed in the Registration
Statement on Form F-1 and other documents filed from time to time by MIH
Limited with the Securities and Exchange Commission, as amended. MIH Limited
undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
<PAGE>
MIH Limited
Preliminary results for the years
ended March 31, 2000, 1999 and 1998
<PAGE>
2
MIH LIMITED
<TABLE>
<CAPTION>
GROUP STATEMENT OF OPERATIONS for the years March 31, 2000, 1999 and 1998
(in million of US dollars, except per share and share amounts) 2000 1999 1998
<S> <C> <C> <C>
Net revenues $ 723 $ 608 $ 501
Operating expenses:
Cost of providing services (435) (391) (309)
Selling, general and administrative (284) (204) (175)
Depreciation and amortization (74) (51) (58)
------------ ------------- -------------
Total operating expenses 793 (646) (542)
------------ ------------- -------------
Operating loss (70) (38) (41)
Financial results, net (16) (9) (6)
Equity results in joint ventures (39) (41) (5)
Equity results in associates (2) (2) (3)
Profit on sale of joint venture 3 31 -
Profit on sale of associate 15 - -
Profit on dilution of subsidiaries, net 96 - -
------------ ------------- -------------
Loss before taxation (13) (59) (55)
Income taxation (1) - (8)
------------ ------------- -------------
Loss after taxation (14) (59) (62)
Minority interest 5 - 4
------------ ------------- -------------
Loss from continuing operations (9) (59) (58)
Discontinued operations losses (8) (10) (6)
------------ ------------- -------------
Net loss $ (17) $ (69) $ (64)
============ ============= =============
Per share amounts:
Loss from continuing operations
Basic and diluted $ (0.18) $ (1.54) $ (1.53)
Net loss
Basic and diluted $ (0.34) $ (1.80) $ (1.67)
Shares used to compute loss per share
Basic and diluted 50,790,662 38,235,000 38,235,000
</TABLE>
<PAGE>
3
MIH Limited
<TABLE>
<CAPTION>
GROUP BALANCE SHEETS as at March 31, 2000 and 1999
(in millions of US dollars) 2000 1999
ASSETS
<S> <C> <C>
CURRENT assets
Cash and cash equivalents $ 285 $ 56
Inventories and accounts receivable 117 115
Program and film rights 30 39
------------ -------------
Total current assets 432 210
------------ -------------
Non-current assets
Tangible fixed assets, net 214 237
Intangible assets, net 207 207
Long-term investments 97 70
Program and film rights 127 52
------------ -------------
Total non-current assets 645 566
------------ -------------
TOTAL ASSETS $ 1,077 $ 776
============ =============
LIABILITIES
Current liabilities
Bank overdrafts and short-term loans $ 48 $ 64
Current portion of long-term debt 16 16
Current portion of program and film rights 32 38
Accounts payable and other current liabilities 229 231
------------ -------------
Total current liabilities 325 349
------------ -------------
Non-current liabilities
Transponder and set-top box leases 166 182
Long-term debt - other 20 23
Program and film rights 119 44
------------ -------------
Total non-current liabilities 305 249
------------ -------------
TOTAL LIABILITIES 630 598
------------ -------------
Minority interest 82 1
------------ -------------
TOTAL SHAREHOLDERS' EQUITY 365 177
------------ -------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,077 $ 776
============ =============
</TABLE>
<PAGE>
4
<TABLE>
<CAPTION>
MIH Limited
(in millions of US dollars) 2000 1999 1998
<S> <C> <C> <C>
Cash flows from operation activities
Loss before taxation $ (13) $ (59) $ (55)
Adjustments to reconcile loss before taxation to cash
generated from operations
Adjustments 51 104 105
Working capital changes (4) (49) (43)
--------------- --------------- -------------
Cash generated from / (utilised in) operations 34 (4) 7
Finance income 14 10 8
Taxation (paid) / refunded (2) (6) 3
Utilised in discontinued operations (8) (10) (5)
Net cash from / (used in) operating activities 38 (9) 13
Acquisitions of subsidiaries, net (22) (23) (43)
Acquisition of joint ventures, net (62) (67) (46)
Acquisition of marketable securities (26) (5) 1
Purchase of tangible assets (25) (11) (32)
Proceeds on disposal of affiliates 3 - 283
Proceeds on disposal of tangible assets 3 7 5
Dividends received 2 3 2
--------------- --------------- -------------
Net cash (used in) / from investing activities (127) (96) 183
Net cash from / (used in) financing activities 324 8 (85)
------------------------------
Net increase / (decrease) in cash and cash equivalents 235 (97) 98
Cash and cash equivalents at beginning of the year 56 153 61
Translation adjustments on cash and cash equivalents (6) (1) (6)
--------------- --------------- -------------
Cash and cash equivalents at end of the year $ 285 $ 56 $ 153
=============== =============== =============
</TABLE>
<PAGE>
5
MIH Limited
GROUP SUPPLEMENTARY INFORMATION
(in millions of US dollars, except
for the net asset value per share) 2000 1999 1998
Included in selling, general and
administrative expenses:
Operating lease charges $ 16 $ 37 $ 33
Financial results: (16) (9) (5)
Interest received 14 10 8
Interest paid (27) (21) (13)
Net foreign exchange losses (5) (1) (6)
Dividends received 2 3 3
Gain on disposal of investment - - 3
Long-term investments: 97 70 77
Marketable securities 27 1 57
Associates 15 14 13
Joint Ventures 55 55 7
Market value of listed investments 305 122 159
========= ========= =========
Capital expenditure for the year 26 11 32
========= ========= =========
Commitments:
Capital expenditure 50 19 18
Operating lease commitments 89 88 245
Programme rights commitments 40 34 16
Decoder commitments 13 20 13
Net asset value per share (cents) 684.83 366.16 664.30
========= ========= =========
<PAGE>
6
MIH Limited
<TABLE>
SEGMENTAL INFORMATION for the years
March 31, 2000 and 1999
(In million of US dollars)
<CAPTION>
Total revenue EBITDA Net (Loss)/Profit
------------------------- ----------------------- -------------------
2000 1999 2000 1999 2999 1999
------------------------- ----------------------- -------------------
<S> <C> <C> <C> <C> <C> <C>
Television Platforms 746 613 46 (24) (106) (112)
Technology 103 88 (25) (11) 71 (10)
- Mindport 72 73 (10) (1) (6) (3)
- OpenTV 31 15 (15) (10) 77 (7)
Internet 25 - (36) - 19) -
Adjustments (12) (10) (11) (12) 38 53
Sub-total 861 691 (25) (47) (17) (69)
Equity results adjustments (138) (83) 29 60 - -
- UBC (114) (68) 5 50 - -
- M-Web (South Africa) (24) - 24 - - -
- OpenTV - (15) - 10 - -
----------------------------------------------------------------------
Total 723 608 4 13 (17) (69)
======================================================================
</TABLE>
<PAGE>
7
COMMENTARY ON THE MIHL PRELIMINARY FINANCIAL INFORMATION FOR THE FINANCIAL
YEAR ENDED MARCH 31 2000
MIHL has grown into a multinational provider of television platform, Internet
and interactive technology services. It is focussed on creating multimedia
platforms in the markets it serves by utilising its core media-based
competencies of content aggregation, subscriber management, platform
development, marketing and branding to expand its internet operations.
Highlights
During the financial year ended March 31, 2000 the group achieved the
following financial and operational highlights:
o Revenues for the year increased by 19.0% to US$ 723.4 million (1999: US$
607.9 million). The Group achieved positive Group earnings before
interest, tax, depreciation and amortization ("EBITDA") of US$ 3.8
million (1999: US$ 13.6 million), after incurring development costs in
the Internet and technology businesses.
o MIHL listed on the NASDAQ National Market (NASDAQ) and on the Amsterdam
Stock Exchange (AEX) through an Initial Public Offering (IPO) of 10.4
million shares, raising US$ 187.9 million, before expenses. Subsequent to
year end, MIHL raised US$ 180.4 million, before expenses, through a
follow-on public offering.
o NetMed, secured a Greek digital licence and successfully launched the
NOVA bouquet in December 1999, quickly growing its digital subscriber
base to 18,462 subscribing households.
o A new Internet segment was launched through investments in leading
Internet businesses in Africa, Thailand and China, providing Internet
access, local content, e-commerce and customer care. During the period
these businesses have been extensively developed with attractive content,
which has spurred the growth of large and `sticky' communities.
o OpenTV strengthened its position as the world leader in interactive
television operating systems software and applications development,
ending the financial year with its software installed in over 7.8 million
set top boxes world-wide.
o OpenTV formed strategic alliances with leading Internet, broadcast and
broadband companies, including America OnLine, General Instrument
Corporation, Liberty Digital, News Corporation, Time Warner and EchoStar
Communications. In November it listed on the NASDAQ and the AEX through
an IPO of 8.6 million shares, raising US$ 172.5 million, before expenses.
<PAGE>
8
o OpenTV extended an offer to acquire Spyglass Inc., whose technology
complements OpenTV's existing product offering with full Internet
browsing functionality. In addition it brings a comprehensive suite of
narrow footprint wireless technologies.
Financial Overview
The results of all entities controlled and managed by the MIH have been
included in the segmental disclosure
Management focus of the Group is streamlined in three principal business
segments:
o Television platforms
o Technology (Mindport and OpenTV)
o Internet operations
SEGMENTAL INFORMATION for the years
March 31, 2000 and 1999
Total revenue EBITDA
2000 1999 2000 1999
$' millions $' millions $' millions $' millions
Television Platforms 746 613 46 (24)
Technology 103 88 (25) (11)
- Mindport 72 73 (10) (1)
- OpenTV 31 15 (15) (10)
Internet 25 - (36) -
Adjustments (12) (10) (11) (12)
Sub-total 861 691 (25) (47)
Equity results adjustments (138) (83) 29 60
- UBC (114) (68) 5 50
- M-Web (South Africa) (24) - 24 -
- OpenTV - (15) - 10
------------------------ ----------------------
Total 723 608 4 13
======================== ======================
<PAGE>
9
Television Platforms
The aggregate subscriber base serviced by the television platform operations
of the group increased to over 2.0 million subscribing households.
The African and Middle Eastern segment comprises approximately 1.38 million
subscribers and is spread over more than 40 countries. It continues to
experience an increasing trend of analogue subscribers migrating to its
digital platform, which now comprises in excess of 516,000 digital subscribing
households.
The Mediterranean operations in Greece and Cyprus reached 350,072 subscribing
households. In December 1999, MultiChoice Hellas (MCH), the group's Greek
subscriber management company, became the first company in Greece to secure a
digital licence, and launched NOVA, its digital satellite service.
Against the recent background of difficult economic conditions in South East
Asia, UBC, the leading television platform operator in Thailand has performed
well. With strong focus on churn management, customer care and a compelling
content line-up, it has grown to 333,395 subscribing households, representing
a colour television household penetration rate of less than 2.5%.
Technology - OpenTV
OpenTV, the group's Silicon-Valley based controlled subsidiary, is a world
leader in interactive television operating systems software and applications
development. It provides a complete end-to-end solution for the development
and delivery of interactive television services and applications via digital
satellite, cable, and terrestrial broadcast. OpenTV's set-top box software has
been shipped with or installed in more than 7.8 million digital set-top boxes
world-wide, through more than 28 network operators.
In addition to MIHL and Sun Microsystems, OpenTV is supported by leading
Internet, broadcast and broadband companies including America OnLine, EchoStar
Communications, General Instrument Corporation, Liberty Digital, News
Corporation and Time Warner. In
<PAGE>
10
November 1999, OpenTV was listed on NASDAQ and AEX through an IPO of 8.6
million shares, raising US$ 172.5 million, before expenses.
In March 2000, OpenTV extended an offer to acquire Spyglass Inc., whose
technology complements OpenTV's existing product offering with full Internet
browsing functionality. In addition, Spyglass's comprehensive suite of narrow
footprint wireless technologies presents incremental revenue opportunities.
Mindport - Technology
Mindport's IBS software provides pay-media operators with a broad range of
subscriber management services and products that combine customer care,
billing, and logistics functionality in one integrated system. Mindport's IBS
software currently serves approximately 7.5 million subscribers world-wide.
The system is integrated with all major conditional access systems.
Mindport Irdeto Access provides software solutions for pay-media, interactive
TV and the Internet to clients in more than 50 countries. It is a world leader
in the fields of digital and analogue encryption software and integrated
business systems with more than 4.3 million digital smartcards deployed.
During the period under review, it continued its drive to capitalise on its
interactive and pay media experience with the trial launch of CyperCast, an
Internet protocol (IP) multicast security system.
Internet
The Group aims to unlock revenue potential through commerce opportunities
presented by the convergence of television platforms and the Internet.
Leveraging the Group's technical skills, local approach to content
development, ability to identify and form key local alliances, and experience
in attracting and managing customers, it is well positioned to pursue its
commerce strategy.
The Group's Internet business is centred on building value through the
creation of commerce networks that generate revenue from e-commerce,
sponsorship, advertising and `online' services. All of these elements have
been deployed in the development of the Groups' Internet business to date.
<PAGE>
11
In Africa (www.mweb.co.za), a US$38,2 million investment interest for a 16.8%
interest in JSE-listed M-Web Africa, the leading South African-based online
service provider and content portal with a 60% dial-up subscriber market
share. During the period, M-Web Africa launched a virtual shopping mall,
Shopzone, as well as on-line financial and insurance services. Leveraging off
the digital satellite television platform and its own broadband satellite
service, it is well positioned to expand its reach, bringing the Internet to
more than 40 countries on the African continent.
In Thailand (www.mweb.co.th), Sanook!.com, the leading Thai language Internet
content portal was acquired. Since acquisition, the portal has been
extensively developed with attractive content, which has spurred the growth of
large and `sticky' communities. In line with its strategy to provide a
comprehensive online internet service, a US$25 million investment for 49% of
the issued share capital of KSC was made. KSC is the leading Internet Service
Provider (ISP) in Thailand.
In China (www.mweb.com.cn), a key focus area for the Group, effective
investments of 40% and 50% respectively, were made in EOL, a well positioned
educational portal and Eefoo, one of the top mainland China finance portals.
Subsequent to year-end, M-Web China launched its Beijing based, Chinese
language website. It also entered into a strategic arrangement with A1-Net, an
established Chinese ISP, which enables M-Web China to offer a comprehensive,
subscription- based, Chinese language content and information service.
Group results
Compared with the previous year, revenues increased 19.0% to US$ 723.4
million, arising mainly from strong growth of digital subscribers and the
inclusion of OpenTV revenues.
The operating results for the period reflect a loss of US$ 70.2 million
compared with a loss of US$ 37.8 million for the previous year.
A dynamic of the Group is that growth and expansion into new markets,
interactive technologies and internet businesses are mainly accounted for as a
charge to the income statement. This has resulted in the Selling, General and
Administration (SG&A) charge increasing to US$ 283.9 million [1999: US$ 203.8
million]. This growth results in the creation of valuable television
subscribers, Internet users, and intellectual properties, none of which are
capitalised for balance sheet purposes.
<PAGE>
12
The Group achieved positive EBITDA of US$ 3.8 million for the financial year
ended 31 March 2000, after taking into account:
o A strong television platform contribution to EBITDA of US$ 46.3 million
o Development costs relating to Internet activities
o Additional expenditure from the technology subsidiary, Mindport, arising
from increased investment in software development and resources. This is
in line with its objective of migrating its encryption and business
systems knowledge and expertise into the Internet space
o The consolidation for the first time of OpenTV which incurred costs in
the development of its interactive television business.
The net loss for the period under review amounted to US$ 17.0 million, after
accounting for the following material items:
o The increased amortisation charge arises substantially from the increased
goodwill on the further investment in OpenTV.
o An increased depreciation charge arises principally from the new capital
lease for the PAS7 transponders. The previous PAS4 operating leases were
included in cost of goods sold.
o Increase in equity losses of joint ventures for the current year mainly
from the increased investment in UBC. OpenTV losses of 44.5%, previously
included in equity results of joint ventures, are consolidated in Group
results for the period under review.
o A profit realised on the sale of South African signal distribution
associate company, Orbicom (Proprietary) Limited.
o Dilution profit pertains mostly to the accounting effect of listing
OpenTV. The Group's effective holding diluted with the introduction of
additional shareholders consequently giving rise to an increase in
minority interest.
o The Group's African betting operations were discontinued during the
period under review.
The Group's cash resources increased significantly, due to proceeds received
from both MIHL and OpenTV's IPO's. The Group ended the financial year with
cash and cash equivalents of US$ 284.5 million. Subsequent to year end, MIHL's
follow-on offering increased Group cash resources by a further US$ 180.4
million, before expenses.
<PAGE>
13
Prospects and Developments
Business Strategy
With its leading media and technology assets and skills, the group is well
positioned to capitalise on interactive commerce opportunities arising from
the convergence of television platforms and the Internet.
The group's strategy remains focussed on:
o Growing the digital subscriber bases of its leading television platforms.
Introducing two-way interactive services, utilising OpenTV's interactive
television operation system software and the Internet.
o Securing key local and attractive international content in its markets.
o Providing comprehensive technology solutions for subscriber management,
conditional access and other media commerce applications to cable,
satellite and Internet operations.
o Growing the online Internet businesses through their content portals,
on-line customer services and e-commerce opportunities.
The Group is intent on rapidly developing its businesses in the fields of
Internet and technology. The Board is of the view that this strategy, which
will result in increased investment in development expenditure, is important
in building sustainable shareholder value over the longer term.
On behalf of the board:
T Vosloo J D T Stofberg
Chairman Chief Executive
Directors
T Vosloo (chairman), J P Bekker, A A Coetzee, J H W Hawinkels, S G J Oldfield,
S J Z Pacak, S F Ward, W J Raduchel, A M Rosenzweig, J D T Stofberg (chief
executive).
<PAGE>
14
Registration Agents Paying Agent
First Chicago Trust Company of New York Mees Pierson N.V.
Mail Suite 4690 Rokin 55
P O Box 2532 P O Box 243
Jersey City 1 000 AE Amsterdam
New Jersey Netherlands
07303-2532
Registered Office
Abbott Building
Road Town
Tortola
British Virgin Islands
http://www.mih.com
