Zimpapers revenue bulks 74pc
DIVERSIFIED, listed media group Zimbabwe Newspapers (1980) recorded a 74 percent growth in revenue to $2,003 billion in the nine months to 30 September 2021 compared to $1,1 billion for the same period last year driven by growth across all the divisions.
Zimpapers group chief executive, Pikirayi Deketeke, in a trading update for the period said the Digital and Publishing Division (DAP) continued to contribute significantly to the group’s revenue at 65 percent followed by the Commercial Printing Division’s (CPD) that was at 17 percent.
The Radio Broadcasting Division (RBD) and the group’s fast growing Television Network (ZTN) contributed 14 percent and four percent respectively.
“The group’s performance continued on an upward trend throughout the quarters and is expected to be sustained in the fourth quarter owing to the relatively improving operating environment.
“In that regard, the group’s fourth quarter, which is the peak period for the company’s products, is expected to be better than the third quarter,” Deketeke said.
He said despite the hyperinflationary environment, the Zimpapers improved its net profit before monetary adjustment margin to 12,2 percent compared to 10,8 percent for the same period last year.
“In line with the improved revenue growth, the Group recorded operating profit before monetary adjustments of $244,9 million when compared to a profit of $124,2 million for the same period last year,” said Deketeke.
In terms of individual division performance, DAP recorded a 24,7 percent volume growth for the quarter compared to the same period last year and the growth follows the 20,7 percent growth recorded for the second quarter when compared to last year.
“On year-to-date basis, the division was 0,3 percent favourable to the same period last year following a 29,6 percent decline in the first quarter of the year,” he said.
Deketeke noted that the Division is on a volume recovery path as both circulation and advertising recovered.
He said Circulation was 14 percent better when compared to the same period last year whilst advertising recorded a 33 percent growth in the month of September 2021 when compared to the month of June 2021.
The RBD recorded a 2,7 percent volume increase for the third quarter when compared to the same period last
year.
On a year-to-date basis, the RBD was 2,4 percent above the same period last year and this was a recovery from the 3 percent decline that was recorded in the first quarter of the year.
Deketeke said the CPD volumes for the quarter were 54 percent better than the same period last year which was an improvement from the negative 23 percent recorded for the second quarter, when compared to last year.
“On year to date, the Division recorded a 13 percent favourable volume performance when compared to the same period last year and the improved performance for the quarter was a result of further relaxation of the Covid-19 lockdown restrictions and improved machine reliability following installation of a second commercial printing machine,” he said.
The ZTN recorded a 51 percent volume growth for the quarter and 102,1 percent on year to date when
compared to the same period last year as a result of the increase in the station’s audiences and brand endorsements.
Deketeke said during the period under review, the operating environment was stable following the slowdown in Covid-19 infections and the subsequent relaxation of the lockdown restrictions.
“Therewas also improved availability of foreign exchange whilst the official exchange rate was relatively stable,” he said.-eBusiness Weekly
