"The purchase of the remaining 40% of CDT will prove key across the entire Johncom group, notably for businesses that manufacture DVDs and CDs, Nu Metro Home Entertainment and Gallo Music respectively," says Prakash Desai, Johncom deputy group CEO.
"We are excited about the outlook on DVD as a format, which forecasts a positive trend globally of growing unit numbers for the coming years."
Johncom has already invested R5.6 million in CDT's CD manufacturing lines within the past financial year ending March 2006. The group has also committed to a new DVD line, which will be operational by end August 2006, requiring capital of R9.2 million. This year alone, 32 million units have been handled through the CDT plant. Revenue for the year to March 2007 is forecast at R177-million.
Within the 2006 financial year, Warner Music International (WMI) and Johnnic Communications joined forces to create Warner Music Gallo Africa (WMGA), a new music-based content company in South Africa.
More recently, Johncom acquired a majority share (80%) in Ochre Media through its subsidiary, Johncom Media Invesments.
