The SA Broadcasting Corporation's 2008 operating profit has dropped from last year's R182.8-million to R111.3-million.

However, its overall revenue increased by 10 percent to R4.7-billion, the SABC said in a statement on Friday.

The operating profit excluded the impact of pension and medical aid costs, and profit after tax was R321.2-million.

This amount was due largely to the recognition of a R420.8-million pension fund surplus, R144.5-million in costs to fund post-retirement medical aid obligations, and a R89.4-million contribution to a pension fund.

In 2007, profit after tax was R192.8-million.

Commercial advertising for the SABC grew 14 percent to R3.1-billion and advertising in general accounted for 81 percent of total revenue.

Although R568-million was generated out of commercial revenues, contributions through sponsorships had dropped nine percent from 2007.

Loss of rights to broadcast games

"This was due to the decrease in aired sports events following the loss of rights to broadcast games in the Premier Soccer League."

Television license revenue grew eight percent.

The corporation said it lost R76-million due to programming rights it brought, but then never broadcast within the licensed period.

Staff costs also rose through salary increases, reclassification of freelance payments from general to staff payments, and hiring of new staff.

The SABC said R40.6-million during the year was classified as "wasteful" spending in terms of the Public Finance Management Act (PFMA).

"The corporation is now attempting to recover this expenditure."

The SABC said an overhaul in its accounts system meant it was now re-auditing all spending and amortisation of its more than 4000 programming projects.

This process was not completed in time for a sign-off of financial results.

A R140-million claim from a supplier

It was also involved in a number of litigation processes, including the Public Investment Corporation over Bophuthatswana Broadcasting Corporation premises and a R140-million claim from a supplier.

The corporation said it had little debt and R165.6-million on its balance sheets, leaving it in a "solid cash position".

Local content also increased on the SABC this year.

On SABC1, local content increased by 16 percent, and by seven percent on SABC2.

On its radio stations, 60 percent of music was now local.

The corporation said, this year it purchased four high definition outside broadcast vans which would be used during the 2009 soccer confederation cup and the 2010 world cup.

Sapa