Despite allegedly being owed R1-billion or more by the SABC for signal transmission fees, Sentech has reported 16% growth in revenue for the 2024/2025 financial year.
However, the state-owned broadcasting signal distributor reported a net loss after tax of R246-million, primarily due to provisions for expected credit losses caused by the economic challenges facing its customers, it said without elaborating but in likely reference to the SABC.
It said that revenue grew from R1.38-billion to R1.61-billion in the 2025 financial year, which demonstrated “resilience and steady operational performance” in a challenging economic environment.
This is an improvement from the 2023/2024 financial year, when the company reported R1.38-billion in revenue, down from R1.41-billion in the previous year. Performance then was impacted by load shedding, SABC debt and a weakening rand.
It reported a clean audit outcome after achieving the same in the previous financial year.
The company developed an action plan to diversify its revenue streams beyond traditional broadcast media to improve its financial situation. Earnings before interest, tax, depreciation and amortisation increased from R302-million to R410-million, while its performance against objectives came in at 85%, up from 64% previously.
Sentech and the SABC are currently in mediation over the latter’s refusal to pay debt the former claims is owed to it. The public broadcaster is Sentech’s primary client. It has said previously that it is “subsidising” the SABC’s signal distribution expenses to the tune of R70-million/a month.
SABC Bill
The SABC wants to renegotiate the signal costs, which it has said are onerous.
The matter is further complicated by the delay in passing the SABC Bill, which is meant to find a new funding mechanism for the broadcaster. However, communications minister Solly Malatsi last week announced that the department of communications & digital technologies has appointed consultancy BMIT to develop a new funding model for the SABC.
Read: Sentech launches Freevision Play, a free streaming TV service
Sentech recently threatened to switch off the SABC’s transmissions by the end of December this year if there was no resolution to impasse.
Sentech said on Monday that it will continue to focus on accelerating digital transformation, enhancing service delivery, expanding partnerships, and growing its core business across towers, broadband, data centres, satellite and media.
“Our results reflect Sentech’s resilience and agility in navigating macroeconomic challenges while making strategic shifts for the future. With our renewed organisational model and clear strategic focus, we are well-positioned to create sustainable, long-term value for all our stakeholders,” said Sentech CEO Tebogo Leshope in a statement.
Asked for comment on how much it owes Sentech, SABC head of communications Mmoni Ngubane declined to give specifics. However, she said that the broadcaster continues to make monthly payments to the company and has been unable to reduce its historical debt owed to Sentech significantly due to affordability constraints.
“This is not a matter of non-payment but rather of a structural funding shortfall. The SABC carries a substantial unfunded public mandate: we provide news, education and programming in all official languages, much of which is not commercially viable, but is essential for broad public access to information and cultural expression.
Funding model
“Revenue from advertising and sponsorships alone is insufficient to cover these costs. As a result, while the SABC continues to make payments to Sentech every month, these are not enough to fully settle the outstanding debt,” Ngubane said.
She said this underscores the urgent need for a sustainable funding model, which secures universal access while safeguarding the SABC’s independence. For this reason, the SABC is encouraged by the minister’s announcement on the funding, and welcomes it as a turning point. – Additional reporting by Nkosinathi Ndlovu, © 2025 NewsCentral Media
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