Company that E-tv and SABC rely on makes R60 million loss

South Africa’s state-owned company that provides broadcasting signal distribution, Sentech, has reported a net loss after tax of R60 million.

The company said it delivered resilient performance for the financial year ended 31 March, reducing its loss by 76% compared to the previous financial year.

An ongoing dispute between Sentech and the SABC, South Africa’s state broadcaster, has continued to take a significant toll on Sentech’s finances.

The SABC owes Sentech roughly R1.6 billion for services it provides in signal distribution. SABC is now paying Sentech R30 million per month, according to Sentech CFO Clarinda Simpson.

However, the monthly distribution bill the SABC owes Sentech is R71 million, meaning Sentech has been deprived of significant income despite providing services.

In February, officials from the Department of Communications told Parliament that National Treasury allocated R889 million in adjustment allocation letters to Sentech.

“National Treasury has given us an additional allocation of R700 million for signal distribution,” said Nonkqubela Jordan-Dyani, director-general of communications at the time.

This was combined with an additional R189 million for the purposes of funding dual illumination amid delays in completing South Africa’s Broadcast Digital Migration (BDM) project.

“So, the allocation brings it to about R889 million altogether for Sentech. We must not take it as if it’s a special privilege. It should not be seen as a debt write-off,” said Jordan-Dyani.

Simpson told Parliament in February that Sentech was no longer a going concern and that the entity only had R176 million in its bank account.

Despite challenging financial circumstances, Sentech reported in its results for the year ended 31 March 2026 that it achieved 90% of its predetermined objectives.

“Sentech has delivered a resilient performance in a challenging and rapidly changing operating environment,” said CEO Tebogo Leshope.

“The significant reduction in our net loss, improved performance against our predetermined objectives and continued clean audit outcome demonstrate the progress we are making.”

Sentech’s total revenue for the 2025/2026 financial year was R1.63 billion, a marginal 1.4% increase compared to the previous year.

Earnings before tax declined 22% to R342 million, compared to R410 million in 2025, with Sentech recording a loss before interest and tax of R141 million.

“Sentech continued to advance in its transformation journey from a traditional broadcast signal distribution business towards a diversified digital infrastructure and connectivity company,” it said.

“This is underpinned by a focus on strengthening the core business, developing new revenue streams and identifying opportunities to unlock greater value from Sentech’s infrastructure and capabilities.”

Performance IndicatorFY2026FY2025Total RevenueR1.628 billion (1.4% increase)R1.606 billionEarnings Before Interest and Tax (EBIT)(R141 million)(R164 million)Net Loss After Tax(R60m)(R246m)Performance Against Predetermined Objectives90%85%Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)R353 millionR410 million Audit OutcomeClean auditClean auditSocio-Economic Transformation SpendR734 millionR431 million