SABC Achieves First Unqualified Audit Opinion Since 2009
For the first time since 2009, the South African Broadcasting Corporation (SABC) has received an unqualified audit opinion.
The public broadcaster presented its 2023-2024 Annual Report to Parliament, with auditors confirming that the financial statements are fairly presented and comply with the relevant financial reporting standards.
The SABC attributed these positive results to a stronger focus on financial discipline and efforts to institutionalise good governance across the organization.
“I am proud that the SABC has reached another significant milestone in our journey of recovery, renewal, and growth. Our unqualified audit opinion follows several recent successes, including our acclaimed election coverage, the relaunch and rapid audience growth of our SABC+ streaming platform, and our content partnerships with leading global and local media houses,” said Nomsa Chabeli, the SABC’s Group Chief Executive Officer.
The report also highlighted a 7% increase in advertising revenue and a reduction in operating expenses compared to the 2022-2023 financial year.
Additionally, the broadcaster reported a 77% decrease in the loss before interest and tax, reducing it to R192 million from R827 million the previous year.
The cost of the unfunded public interest mandate is estimated at R834 million, and securing government funding for this mandate remains a key priority for the SABC.
Chief Financial Officer Yolande van Biljon noted, “Despite financial sustainability challenges, the Corporation executed its mandate diligently and passionately. Achieving an unqualified opinion, a first in 14 years, reflects the strategic journey the SABC has undertaken to strengthen its internal control environment, compliance with legislation, expenditure management, governance, and oversight.”
The report also acknowledged that the South African audience is following global trends by moving to streaming platforms.
A decline in audience share from a peak of 46% in the 2016 financial year has continued to impact the SABC’s ability to grow its revenue streams.
Additionally, there has been a decline in TV license revenue due to non-compliance, which increased to 85.6% in 2024.
Consequently, the broadcaster plans to focus on developing new equitable financial models to fund the SABC.