Brand awareness campaigns lead to an increase in TV licence fee collections — SABC

The SABC has collected R815,1m from TV licence holders, which is R26.6m more compared to the previous financial year. 

However, the evasion rate (defaulters) remains high at 81.7%. 

The public broadcaster has attributed the increased revenue from licences to collaborations with its television licence team, radio and video entertainment section and marketing department. 

SABC group executive for corporate affairs and marketing, Gugu Ntuli, said according to its annual report for the 2021/2022 financial year, brand awareness campaigns led to an increase in TV licence fee collections. 

Ntuli said the brand awareness campaigns strengthened the TV licence brand and contributed to enhanced TV licence collections.

In the previous financial year, the SABC TV licence revenue collection stood at R788m, and at R791m in 2020.

The annual report was tabled in parliament on Monday last week.

''The improvement of TV licence fee collections is attributed to various collaborations with stakeholders within the SABC. These includes the initiatives from the TV licence team, radio, video entertainment, corporate affairs and marketing. The SABC has external partnerships with whom great efforts continue to be made to improve the collection of licence fees,’’ said Ntuli.

Ntuli, however, said an increasing number of licence holders who default on arranged payment plans that have been put in place is one of the causes of the high evasion rate.

She added that the economic climate in which licence fees are being collected has led to licence holders’ accounts falling into arrears.  

''The payment plans are intended to assist defaulters by reducing the financial burden and permitting the licence holders to settle their arrears in affordable monthly instalments,’’ said Ntuli.

Meanwhile, the SABC's net loss improved by R329m compared to the 2020/21 financial year, resulting in a R543m improvement in net loss over five years between 2018 and 2022. 

Revenue grew by R90m year-on-year as a result of the marginal increase in sponsorship revenue. 

Ntuli said the improvement in net loss was negatively impacted by the acquisition of sport rights of the Olympics [2020 Tokyo Olympic Games], which accounts for R122m of the reported net loss.

''If not for the Olympics investment — which is a public mandate obligation — the operating position would have resulted in a loss of R78m — an 85% improvement from the previous fiscal [year],'' said Ntuli. 

kokam@sowetan.co.za