PROFILE

espAfrika is a cutting-edge global competitor in events management. Over the past decade, they have staged international music festivals throughout Africa. In 2016 The Cape Town International Jazz Festival was voted one of the World’s Best Festivals by FEST 300 and voted the Best Festival in Cape Town in the OFLOCAL 2015 poll. The festival contributes over R0,5 billion to the economy of the Western Cape and R0,9 billion to the gross domestic product (GDP) of the South African economy.

espAfrika is able to produce and host a range of events, from festivals to corporate functions and gala dinners. This innovative events management company thrives on challenges and their collective energy produces dynamic results. espAfrika’s primary strategy is to use indigenous resources and they collaborate with local businesses and the public to ensure that all stakeholders benefit from this collaboration.

espAfrika consistently aspires and inspires new business within the events and entertainment sector throughout Africa. Having diligently established trustworthy relationships in the international music industry, espAfrika ensures a lucrative flow of artists and expertise between Africa, Europe, Asia and the United States.

2016 OPERATIONAL PERFORMANCE

espAfrika has been able to fund its operations and events without having recourse to external funding. The Company is profitable and contributes positively to all its stakeholders. All the objectives set by the Board of espAfrika have been met and the Company is on track to building a long lasting and sustainable business.

VISION 2020 VISION – ESPAFRIKA’S CONTRIBUTION

Following a strategic review of the business, management’s main task was to develop two new Company-owned events and to secure two third-party events in order to reduce the Company’s dependency on the Cape Town International Jazz Festival.

Strategic objectives and progress to date:

  • Return the Company to solvency and profitability – espAfrika is now solvent and profitable as well as being able to fund their operations without having to seek external funding.
  • Improve staff morale and bring stability to the Company – Staff morale improved significantly and the Company is now stable.
  • Reduce dependency on Cape Town International Jazz Festival and introduce two new Company-owned events – A new annual event “The Royal Escape Experience” was launched at the end of July 2016 at Sun City in the North West Province and an additional annual event will be launched during the 2019 financial year.
  • Seek new sponsorship for the Company events – This is an ongoing process and new sponsors have been brought on board for the Cape Town International Jazz Festival and “The Royal Escape Experience”. Negotiations with new potential sponsors are ongoing.

PROSPECTS AND FUTURE OUTLOOK

  • Establish the Company as the leader in events production and management in the country.
  • Additional new Company-owned events are planned over the next few years outside of the Western Cape as well as securing new third-party events on a long-term contract. It is envisaged that these new events will contribute significantly to the success of espAfrika while at the same time reducing the dependability on the Cape Town International Jazz Festival.
  • Through espAfrika’s existing business initiatives, social development programmes and innovative leadership, narrow the gap between the rich and the poor and promote music to a wider audience. The development programmes offered by espAfrika in the events industry is providing opportunities to the previously disadvantaged communities to have access to this industry.

OPERATIONAL FOOTPRINT

espAfrika currently operates in the Western Cape and the North West Province. Plans are afoot to produce and manage new events in other provinces in the near future thus expanding their footprint as a truly national Company.

PRODUCTS/BRANDS

Detailed information about espAfrika’s business model, stakeholders, risks and governance is available on the website at www.aeei.co.za.

BUSINESS MODEL

espAfrika’s business model is a mix of organising and producing its owned events and managing events on behalf of clients (third-party events). A new annual event under the brand name “The Royal Escape Experience” was launched in Sun City during the month of July 2016. Additional new owned annual events are scheduled to be launched outside of the Western Cape during the next few years. In line with the strategy of developing these new owned events as well as securing third-party events on long-term contracts, espAfrika will create a more sustainable business model going forward and lessen its dependency of its main event the Cape Town International Jazz Festival.

As sponsorship is a critical component in delivering a successful and sustainable event, the multiple company events scenario will enable sponsors to leverage their brand over a much longer period including platforms which in turn will enhance the sponsorship offerings and value proposition.

By devoting more time and effort on building its owned events, the desired results of building a more controllable and sustainable business with projected growth will be achieved.

GOVERNANCE

espAfrika through the application of policies and structures as defined by the AEEI Group complies with all sound governance and regulatory functions and has had no reported fraud or deviations in the application of these principles in the current period. The continued training and exposure of employees to the ever changing regulatory environment and regulations of the Companies Act ensure that all employees are fully informed of their responsibilities.

STRATEGIC PLANNING AND MONITORING

espAfrika manages its business strategically, following a process, which includes an annual review of past performance, products/services, markets as well as a review of the internal and external environments. This review is followed by the setting of strategies and action plans, aimed at both growth and sustainability in current markets.

In addition to the annual strategic planning exercise and quarterly reviews of strategy achievement, espAfrika’s management and employees have an Imbizo annually to discuss the long- and short-term targets that need to be reached and diversify in order to maintain their existing economic, operational and environmental sustainability and advantage. Monthly targets are agreed upon and managed through the chief financial officer and various heads of departments. espAfrika believes that in order to achieve the utmost sustainability financially and holistically, it is essential to formulate these objectives collectively with full buy-in from all their staff. The responsibility and understanding is shared among the employees and a sense of achievement is felt when targets are met. Strategies and actions are adjusted periodically to ensure the growth and sustainability of the business.

The Board of espAfrika has approved a formal delegated authority schedule, which informs executive management of the necessary levels of approval for all key business transactions. In this way, the Board of espAfrika ensures that there is a senior manager, or the Board itself, reviewing each key business transaction/initiative to ensure that key business activities are aligned with their strategy, is lawful, will contribute to their sustainability and will not be harmful to any stakeholders and/or the environment.

In this manner, espAfrika can monitor its financial performance against strategies set for the year and evaluate this against the key performance areas of management and key employees. Through this process, the sustainability of operations is ensured and the objectives of the Company are achieved.

ECONOMIC SUSTAINABILITY

espAfrika aims to deliver sustainable returns to all of its stakeholders. A measure of the value created by espAfrika is the amount of value added by its wide range of activities to the cost of products and materials purchased from small and micro enterprises as well as the economic impact it creates to the Western Province and the country as a whole.

espAfrika continuously reviews its entire cost base using a zero base approach to ensure that this is in line with its revenue and business growth expectations as well as ensuring that the return on investment is in line with the industry standard. Overheads are continuously monitored and a delegated authority is cascaded throughout espAfrika to ensure that each manager is responsible for the monitoring of costs as well as its impact on the Company’s performance. Regular meetings are held to ensure all managers and staff are aware of their contribution and the impact of their decision/s on the business.

The strategy adopted has resulted in espAfrika improving on its profitability, liquidity, staff morale and participation as well as ensuring sustainable growth and profitability for future financial years.

ENVIRONMENTAL SUSTAINABILITY

espAfrika adheres to a strict internal environmentally friendly policy when producing events.

This is implemented through:

  • Waste management; and
  • Recycling.

All espAfrika’s events incorporate a recycling and waste management plan, utilising different coloured bins spread throughout events. The bins are transported to a waste management complex where the waste is then recycled. All construction materials such as plaster board, plywood, beams and corrugated iron are donated to needy causes.

SOCIAL SUSTAINABILITY

espAfrika’s integrated sustainability plan is two-pronged:

  • To develop from within the business and grow their human capital; and
  • To develop small businesses within the industry and to grow community-based services to alleviate poverty. During the year, espAfrika held many workshops to further promote this initiative. The initiative is fully supported by the National Department of Arts and Culture as part of the Mzanzi Golden Economy and additionally espAfrika uses a number of small and micro enterprises as part of its procurement policy.

espAfrika is an active member of SETA and strongly believes in internal training and development. During the year, a number of employees attended training seminars to further enhance their skills. The events industry strongly relies on skilled contractors. However, espAfrika always matches a skilled contractor with a permanent employee so that a transfer of skills can occur.

espAfrika believes that each and every resource should be utilised creatively to support and develop music, arts, culture and job creation. espAfrika, through the Cape Town International Jazz Festival and “The Royal Escape Experience”, created in excess of 3 250 jobs, in addition to the numerous skills transfer and development projects held during the events. With the development of new events the impact on job creation, support for small companies and poverty alleviation will further improve.

KEY CHALLENGES AND RISK MANAGEMENT

Key challenges

The following key challenges have been identified:

Risks

Risk management is integrated into the business management process. espAfrika maintains a risk register, which is compiled and maintained by executive management, with the risk status and execution of planned actions being reviewed monthly. Executive management is responsible for the identification, classification and management of all operational risks.

Significant strategic and going-concern risks can be identified at all levels in the Company. However, the responsibility for directing the actions necessary to manage these risks is the responsibility of the Board of espAfrika. Strategic and going-concern risks are reviewed at the quarterly Board meetings of espAfrika and the executive directors are charged with the execution of approved risk management actions.

In the year under review, although a number of identified risks could not be avoided, the pre-planned management strategies for these risks were successful in mitigating and avoiding the severity of the impact on the Company.

The following risks have been identified:

STAKEHOLDER MANAGEMENT

espAfrika recognises the importance of constant engagement with stakeholders. The principal stakeholders for the Company are shareholders, employees, customers, suppliers, regulatory authorities, trade unions, government and local communities.

espAfrika has various procedures in place with regard to stakeholder management. These are summarised as follows:

REMUNERATION

espAfrika staff are its most important asset and the Company aims to be a competitive and attractive employer in the marketplace. Remuneration and benefits are important drivers, as are career opportunities, personal development, culture and values, leadership. As stated in the Code of Conduct, espAfrika complies with applicable laws, agreements and industry standards on working hours and compensation.

espAfrika has various incentive schemes in place in order to retain talent and experienced employees. espAfrika’s policy requires all employees to belong to their pension or provident fund in order to plan for their retirement.

PROFILE

Tripos has been in existence since 1970 and has two distinct operating divisions: Travel Management Services and Inbound Tours and Events. While Tripos is specialists in corporate travel, they provide a service in both the corporate and leisure markets. In the tours and events department, they focus on inbound tours to southern Africa for groups and independent travellers.

Tripos has long-term contracts with corporate clients and independent (on and off-site) travel consultants.

Tripos aims to:

  • deliver a superior service while actively contributing to the development of people in the Travel Industry;
  • invest in leading-edge technology to service clients through an Omni channel, both online and in person;
  • develop their employees;
  • build strong relationships and leverage its membership in the Sure Group to provide clients with the best prices; and
  • ultimately deliver sustainable returns to their stakeholders.

2016 OPERATIONAL PERFORMANCE

The economic downturn had a negative impact on corporate travel and outbound leisure travel. Despite this, Tripos managed to increase their revenue by pricing more aggressively. Although a lower profit margin was achieved, the current sales mix is being addressed in order to provide an all-round service offering to their customers. Tripos reviewed its sales processes and the back office procedures as well as performed a complete overhaul in office administration to improve their business.

The weak rand assisted their inbound travel department but this was offset by the government visa regulations and the slow implementation of its reversal, which discouraged many people from travelling to South Africa. Since this regulation was revisited and reversed, the tourism market is rising again and the Company is actively pursuing innovative solutions to capture this section of the market.

VISION 2020 VISION – TRIPOS’ CONTRIBUTION

A detailed analysis of Tripos was done in 2015 with the primary objective of having focused and aligned efforts across the business to deliver on its long-term goals. A five-year strategic plan was implemented with clear deliverables and strategic actions for each strategic lever as well as detailing clear time frames.

Below is a high-level outline of their progress of the Vision 2020 Vision strategic goals.

Tripos continues to grow by focusing on:

  • Growing their share of the corporate market by concentrating their efforts to grow the number of corporate clients, NGOs and government business. They also have a number of government and corporate tenders pending.
  • Concentrating more of their resources on the outbound leisure market and they have employed a dedicated senior consultant to focus on growing the sales revenue in this area.
  • Investing resources in promoting southern Africa and Niche Tours to grow their share of the inbound market.
  • Tripos’ relationship with the SURE Consortium has strengthened in that they have negotiated a new and improved agreement with their global distribution system supplier, Amadeus. In addition, SURE also provides formal training, the use of their in-house consultants for design and sales advice without charge. A partnership was agreed between espAfrika and Tripos for the 17th Cape Town International Jazz Festival and Tripos was elected as the official Travel Partner of the festival.
  • Tripos implemented an incentive scheme based on key performance indicators, to drive sales and assess the efficiency and productivity of employees. Customer satisfaction was measured via a survey conducted and administered externally. A key value of Tripos is to put the customer first and this is entrenched in their values, staff coaching and training, incentives and allocation of resources.

PROSPECTS AND FUTURE OUTLOOK

South Africa’s status as a tourist destination has become more attractive due to the weak rand, its reversal of unpopular visa regulations and its infrastructure. Tripos is planning to grow this part of their business to exploit the increase in tourism revenue.

The outbound leisure market has also been neglected in the past and a concerted drive is underway to increase their share of this market is in progress. The overall objective is to grow the leisure part of the travel business as well as the Inbound Tours division, to alleviate the dependency on corporate travel and to attain better margins.

The actions in progress to achieve this are listed below:

  • Tripos will develop, promote and sell inbound packages for southern Africa;
  • Sell niche packages for the Cape Town International Jazz Festival and negotiate a partnership as the official Travel Partner to the festival on a long-term basis;
  • Sell niche packages for The Harley Davidson Tours;
  • Tripos will develop, promote and sell outbound leisure packages;
  • Work closely with suppliers to provide the best deal to its customers;
  • Arrange meetings, incentive travel, conferences and corporate events for corporate clients;
  • A learnership programme is under way to contribute toward the development of South Africans in the travel Industry;
  • Customer service and sales training has been arranged for all staff;
  • A plan is in place to improve the systems used by their consultants to improve efficiency and to improve the customer experience; and
  • A complete review of all processes to identify opportunities to improve service and gain efficiencies.

OPERATIONAL FOOTPRINT

Tripos has a single office in Cape Town with their corporate client list being predominantly Cape Town-based with less than 5% based in Gauteng.

Inbound clients have originated from a number of countries including Argentina, Dubai, France and the UK.

PRODUCTS/BRANDS

Detailed information about Tripos’ business model, stakeholders, risks and governance is available on the website at www.aeei.co.za.

PRODUCTS/BRANDS

Travel Management

  • Retail Travel
    • Outbound leisure travel
    • Corporate Travel
      • Tripos has contracts with corporate clients, NGOs and government bodies to manage their travel arrangements.
      • Tripos also has a number of agreements with corporates where they are retained as a preferred supplier.
  • Wholesale Travel
    • Tripos structures packages (air, accommodation, tours and transfers) for resale by other Travel Agencies
  • Inbound Travel
    • Inbound Tours of southern Africa
    • Niche Tours
  • List of services offered:
    • IATA air tickets and non-IATA air tickets (e.g. air charters)
    • Accommodation and car-hire
    • Transfer and chauffeur services
    • Packaged travel arrangements
    • Travel insurance, passport and visas
    • After-hours service line
    • Manage corporate events including meeting and conferencing arrangements
    • Incentive Travel

BUSINESS MODEL

Tripos is a retail and wholesale travel business. They retail air, land and associated services directly to the consumer as well as wholesale travel packages to other travel companies. Tripos’ retail business is split into corporate and leisure travel.

Tripos has contracts to manage the travel arrangements for a number of corporate clients based in South Africa. In leisure travel, the focus is on selling outbound travel packages to clients in the local market. The inbound tours department focuses on selling packages to inbound tourists from abroad. In addition, Tripos has agreements with independent travel consultants who use their infrastructure to issue tickets and to service their clients.

Revenues from travel management are generated from service fees and override commissions (from some service providers). A small portion of their income is in the form of rental from the independent travel consultants.

Tripos is growing its retail travel business in line with its strategy while simultaneously planning to grow its inbound tours business. This strategy is designed to ensure regular income from corporate clients and through outbound and inbound sales, improve the overall profit and profit margin.

GOVERNANCE

Tripos, through the application of policies and structures implemented within the AEEI Group, complies with all sound governance and regulatory functions and has had no reported fraud or deviations in the application of these principles in the current period. Employees are also provided with regular training or presentations on the ever-changing regulatory environment to ensure that all their staff are fully informed and that Tripos adheres to all the regulations and laws.

STRATEGIC PLANNING AND MONITORING

Tripos manages its business strategically by following a process that includes an annual review of past performance, source of income and a review of the internal and external environments including the market. This review is followed by the setting of new strategies, targets and action plans, aimed at growth and sustainability in the short to long term.

Quarterly reviews of their strategic achievements, progress on action plans and how changes in the internal and external environments may positively, or negatively, affect each action plan is conducted and monitoring of the new strategic levers have been implemented. Strategies and actions are then adjusted to ensure that Tripos achieves its targets and delivers on its action plans.

As part of its strategy, Tripos also empowers communities in which it operates. This is achieved through the transfer of skills and technical knowledge by employing interns as consultants and in the back office. Tripos promotes preferential procurement from small, black-owned companies.

Tripos has an approved formal delegated authority schedule, which informs executive management of the necessary levels of approval for all key business transactions. In this way they ensure that there is a senior manager or the Board of Tripos itself reviewing each key business transaction/initiative to ensure that key business activities are aligned with their strategy, is lawful, contributes to their sustainability and will not be harmful to any stakeholders and/or the environment.

ECONOMIC SUSTAINABILITY

Tripos aims to deliver sustainable returns to all of its stakeholders. To mitigate the low margins in corporate travel, they have embarked on a strategy to grow the tours and leisure part of their business which traditionally return higher margins. Revenue, costs and cash flow is monitored closely to ensure sustainability.

ENVIRONMENTAL SUSTAINABILITY

The growth of tourism has led to a strain on the world’s natural environment. Tripos promotes responsible travel and encourages the conservation of the environment and the improvement of indigenous people. They also reflect the CO2 emissions from air travel on their invoices to create awareness around the traveller’s carbon footprint. They are also committed to reducing their environmental footprint.

SOCIAL SUSTAINABILITY

Tripos is aware of their responsibility to play a meaningful role in the communities in which it operates.

Tripos is committed to introduce and integrate people of previously disadvantaged backgrounds into the travel and tourism sector.

To achieve this Tripos has:

  • Started a learnership programme;
  • Assists with the growth of small business by giving it preferred supplier status; and
  • Is planning corporate social initiatives in the Western Cape.

KEY CHALLENGES AND RISK MANAGEMENT

KEY CHALLENGES

The following key challenges have been identified:

Risks

Tripos maintains a risk register, which is compiled and maintained by their executive management, with the risk status and execution of planned actions being reviewed monthly. Executive management is responsible for the identification, classification and management of all operational risks.

The business risks facing Tripos’ ability to sustain itself in the future as well as the mitigation against those risks, are noted below:

REMUNERATION

Tripos aims to be a competitive and attractive employer in the marketplace. Remuneration and benefits are important drivers, as are career opportunities, personal development, culture and values, leadership, Company performance and reputation. As stated in the Code of Conduct, they comply with applicable laws, agreements and industry standards on working hours and compensation.

Tripos has various incentive schemes in place in order to retain talented and experienced staff. All new contracts stipulate that it is compulsory for staff to belong to the provident fund in order to plan for their retirement and medical insurance is compulsory.

STAKEHOLDER MANAGEMENT

Tripos recognises the importance of constant engagement with stakeholders. The principal stakeholders for Tripos are shareholders, employees, clients, suppliers and associations.

Tripos has various procedures in place with regard to stakeholder management. These are summarised as follows:

PROFILE

Magic 828 is a medium-wave commercial music radio station and was officially launched on 1 October 2015, broadcasting to Cape Town and the greater Western Cape region. Their studios are situated in Pinelands, Cape Town with a transmitter sited at the centre of a geographic triangle with Paarl, Durbanville and Malmesbury as the three corner points. Magic 828 radiates a 25 000 watt (25 kW) signal to major suburban areas of the Cape, unrestricted by mountainous terrain and operates on the AM wavelength.

The essential broadcast format of the radio station is one of golden oldies music, mixed with less talk, sport, news and community information.

2016 OPERATIONAL PERFORMANCE

Since the launch in October 2015, the radio station is operating smoothly with all of its equipment fully operational. The radio station is built on an advertising revenue model driven primarily by listenership. Advertising revenue continues to increase as a result of the steadily increase in listenership. With the base costs now established and stabilised, Magic 828’s focus will turn to marketing and exploring various product offerings.

VISION 2020 VISION – MAGIC 828’S CONTRIBUTION

A five-year strategic plan was implemented in 2015 with clear deliverables, strategic actions for each strategic lever as well as detailing clear time frames. Magic 828 is on target to achieve its Vision 2020 Vision objectives.

2016 Achievements to date include:

  • Mast and studio built to broadcast by live date;
  • Created brand awareness of Magic 828;
  • The radio station was staffed since September 2015;
  • Local sales team in place;
  • Station went live on 1 October 2015;
  • Production streamlined by increasing the quality of music and training of staff;
  • Lending expertise to community radio broadcasters – ongoing;
  • Involvement with outside broadcasts and training programmes – ongoing;
  • Setting up and running a weekend training school – ongoing;
  • Promoting local talent in terms of the ICASA requirements with a HDI target of 70% with 60% achieved to date – ongoing; and
  • External broadcasts into shopping malls and other events to market their brand.

PROSPECTS AND FUTURE OUTLOOK

Magic 828 have identified the following prospects and opportunities in reaching their Vision 2020 Vision:

  • Further increasing brand awareness and increasing listenership;
  • Explore an opportunity of obtaining government business with the assistance of their partners;
  • Construct a road show to visit agencies in three centres Gauteng, Cape, and KwaZulu-Natal. This has proven (by other stations) to be exceedingly successful;
  • Explore opportunities to bring small to medium business into their advertising fold;
  • Perform at various community events encouraging the underprivileged to participate;
  • Extending their broadcasting via programming from Magic 828 AM on FM community stations;
  • Protecting their industry to create more employment;
  • Further advertising opportunities rising due to the exposure of their station;
  • Further growth in listenership;
  • Fine tuning programming on a daily basis;
  • Creating affordable advertising packages to entities that were previously excluded;
  • Continue to look at joint ventures in marketing and advertising;
  • In conjunction with another entity create an e-Entertainment magazine realising further advertising and income;
  • Employing more people on an equal employment basis; and
  • Increasing their broadcast area.

The Company has aligned its business model to ensure that the business structure, processes and objectives are aligned to the requirements of the ICASA radio licence.

OPERATIONAL FOOTPRINT

Listenership is in the Cape Town and the greater Western Cape region with Paarl, Durbanville and Malmesbury as the three corner points.

PRODUCTS/BRANDS

Detailed information about Magic 828’s business model, stakeholders, risks and governance is available on the website at www.aeei.co.za.

BUSINESS MODEL

The nature of Magic 828’s programming is intended to appeal to the tastes and interests of most age, gender and race groups within the geographic broadcast reception area. Research conducted by Luisa Belter, an independent media and research consultant, together with Freshly Ground Insights (FGI), a research and data collection company, has indicated that this will be achieved in their targeted region.

GOVERNANCE

Through the application of policies and structures within their Company, Magic 828 complies with all sound governance and regulatory functions and has had no reported fraud or deviations in the application of these principles during the current period. The continued training and exposure of employees to the ever-changing regulatory environment and regulations of the Companies Act and ICASA ensures that all employees are fully informed of their responsibilities.

Magic 8282’s current control and governance structure have been evaluated and is continually being improved. The Board of Magic 828 approved a formal delegated schedule of authority, which informs executive management of the necessary levels of approval for all key business transactions. It is aligned with their strategy, is lawful and will contribute to their sustainability and will not be harmful to any stakeholders and/or the environment.

STRATEGIC PLANNING AND MONITORING

Magic 828 follows a process that includes an annual review of the past performance, services, markets as well as reviews the internal and external environments.

ECONOMIC SUSTAINABILITY

Magic 828 aims to deliver sustainable returns to all of its stakeholders by adding value to a range of activities through their development strategy which is based on:

  • providing a sustainable music station on a sound financial basis;
  • providing a service to their audience and advertisers;
  • providing a means for the free and fair dissemination of news and information;
  • displaying integrity in advertising;
  • remaining an independent, law-abiding commercial entity, displaying responsible corporate governance;
  • involvement of all aspects of radio including advisory boards and self-regulatory bodies;
  • being skills reliant;
  • promoting the transfer of skills;
  • promoting the growth of South African talent in the radio industry;
  • advancing the radio industry in technological areas; and
  • continuing to re-invest in the business and the radio industry as a whole.

ENVIRONMENTAL SUSTAINABILITY

As a radio station, Magic 828 has a very low direct impact on the environment.

SOCIAL SUSTAINABILITY

Magic 828’s aim is:

  • to conduct proper and professional training in radio, engineering and production;
  • place interns within the station to learn about professional programming, sales, copywriting, advertising and station management;
  • to assist and train community radio stations with advice and expertise;
  • sharing programming to community radio stations on a pro bono basis;
  • a further requirement of their licence condition is to assist a community station by imparting skills and resources. To this end RKP FM on 99.0 and 102.7 FM totally BEE community stations have been assisted; and
  • attaining a socially acceptable HDI employment balance to 70% of all employees – at present at 60% in terms of their licence requirements.

KEY CHALLENGES AND RISK MANAGEMENT

Key challenges

The following key challenges have been identified:

Risks

Risk management is integrated into their business management process. Magic 828 maintains a risk register, which is compiled and maintained by executive management, with the risk status and execution of planned actions being reviewed monthly. Executive management is responsible for the identification, classification and management of all operational risks.

Significant strategic and going-concern risks can be identified at all levels in the Company. However, the responsibility for directing the actions necessary to manage these risks is the responsibility of the Board of Magic 828. Strategic and going-concern risks are reviewed at the quarterly Board meetings of Magic 828 and the executive directors are charged with the execution of approved risk management actions.

During the year under review, although a number of identified risks could not be avoided, the pre-planned management strategies for these risks were successful in mitigating and avoiding the severity of the impact on Magic 828.

The following risks have been identified:

STAKEHOLDER MANAGEMENT

Magic 828 recognises the importance of constant engagement with stakeholders. The principal stakeholders for the Magic 828 are shareholders, employees, customers, suppliers, regulatory authorities, government and local communities.

Magic 828 has various procedures in place with regard to stakeholder management. These are summarised as follows:

REMUNERATION

Magic 828 aims to be a competitive and attractive employer in the marketplace. Remuneration and benefits are important drivers, as are career opportunities, personal development, culture, values and leadership. As stated in the Code of Conduct, they comply with applicable laws, agreements and industry standards on working hours and compensation.