Online Reporter
Business Reporter
INTEGRATED media house Zimpapers Limited is aggressively expanding its digital revenue streams to lay a solid foundation for long-term viability amid mounting pressures on traditional media businesses globally.
Chief executive Mr William Chikoto told the company’s Annual General Meeting (AGM) in Harare yesterday that legacy media structures were facing growing pressures from social media feeds and digital platforms that have destroyed their historical business models.
For Zimpapers, this has necessitated a transition to a digitally-driven enterprise to insulate the balance sheet from reduced print advertising and circulation, which continue to show better resilience compared to other parts of the world.
Mr Chikoto said following the successful structural integration of its newsrooms, the group had deployed an intensive campaign targeting non-traditional income lines to offset under pressure print advertising and circulation.
“Traditional media business models are collapsing, driven by shifting audience behaviour, platform fragmentation and the rise of digital consumption,” Mr Chikoto told shareholders.
“Having laid a strong foundation through newsroom transformation, our focus now has shifted decisively to digital revenue diversification.
“In line with evolving global media trends and best practices, Mr Chikoto outlined a three-pronged revenue framework designed to aggressively monetise the group’s vast audience reach and reduce reliance on traditional print advertising for revenue.
Under its “publisher as a retailer” model, Zimpapers is leveraging its core and market-leading media brands to drive direct e-commerce transactions and product-based commerce.
The company is also unlocking capital directly from its audience networks by hosting high-impact, corporately sponsored events and experiential gatherings under its “publisher as an event organiser” initiative.
And through its “publisher as an educationist” strategy, the group is creating high-margin revenue streams by introducing professional development initiatives, technical training, and corporate media literacy programmes.
Mr Chikoto noted that the new monetisation models are already yielding positive results, directly pushing up non-traditional revenue segments to cushion the group from legacy printing dependencies.
“These initiatives reflect a deliberate shift towards multi-stream revenue generation,” Mr Chikoto said.
“Our audiences are growing, our content model has been modernised and our revenue streams are diversifying. Most importantly, we are moving from a traditional media house to a digitally driven enterprise.”
“Zimpapers is not reacting to change; we are proactively reshaping our business to lead in a digital future.”
Zimpapers chairperson Mrs Doreen Sibanda said the group’s reduced profitability stemmed primarily from a legacy industrial engine cost structure that no longer aligns with the demands of a fast-moving, digital-first media market.
She noted that correcting this structural imbalance was a top priority for the board, which is working with management to execute critical strategic and operational overhauls.
Mrs Sibanda added that the board was forging ahead with aggressive structural reforms and stricter corporate governance frameworks.
She also expressed cautious optimism regarding Zimpapers’ future trajectory, which she emphasised would be anchored firmly on the ongoing digital transformation.
“The transformation journey we have undertaken will continue to gather momentum, guided by disciplined execution, strategy clarity, and a firm commitment to long-term sustainability,” Mrs Sibanda said.
“While the operating environment is expected to remain complex, we are confident that the foundations being laid, particularly in digital evolution, cost realignment and governance, will position the group to unlock new growth opportunities.
Mrs Sibanda outlined a four-point mandate for the board looking ahead: accelerating the digital transformation, aligning the company’s cost structures with its modern revenue streams, strengthening capital discipline and enhancing stakeholder confidence through transparency.
Presenting a trading update, chief finance officer Mrs Prisca Makandwa said the group narrowed its five-month operating losses by 18 percent year-on-year, driven by aggressive cost-cutting measures and robust growth in its broadcasting and digital divisions.
She revealed that while the business continues to navigate a challenging industry landscape, strategic operational efficiencies are successfully steering the group towards profitability.
For the five months ending May 31, 2026, Zimpapers significantly reduced its operating loss compared to the same prior-year period.
“The improvements we are seeing today—strong margins, reduced losses and growing digital momentum — are clear signals that our strategy is working,” Mrs Makandwa told shareholders.
“With continued discipline, innovation and focus, we are confident that the group will emerge stronger, more resilient and positioned to deliver sustainable value.”
Despite facing some liquidity challenges, the underlying business demonstrated resilience after generating ZiG$6,5 million in positive operating cash flow.
The financial performance was anchored by a gross profit of ZiG123 million on a turnover of ZiG245,9 million.
Although overall revenue registered a modest decline due to shifting advertising trends and evolving consumer habits, aggressive cost optimisation helped bolster the group’s margins.
Performance across Zimpapers’ core divisions remained mixed, but with tremendous signs of a turnaround.
The group’s broadcasting division anchored the overall financial performance, driving robust revenue growth and maintaining strong profitability.
Similarly, headwinds in traditional print were offset by the accelerated digital transformation — including new subscription models and targeted advertising — which drove up digital revenue and narrowed divisional losses.
The commercial printing unit suffered from industry-wide structural shifts, prompting management to launch a major restructuring programme to pivot the division towards higher-value market opportunities.
To address the working capital constraints, Mrs Makandwa said that management had tightened cash flow controls and accelerated debt collections.
Looking ahead, the group anticipates a gradual but steady recovery as its restructuring programmes gain further traction and digital platforms continue to scale.
