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Oliver Kazunga, Senior Business Reporter
THE Zimbabwe Newspapers Group has posted a profit after tax of $2,7 million in the full-year to December 31, 2015 from a loss position of $12, 9 million in the previous year.
The profitability is anchored on improved performance of its newspaper division.
In a statement accompanying the group’s financial results for the year ended December 31, group chairman Delma Lupepe indicated that the company’s revenue was at $40 million compared to $41, 6 million recorded in 2014.
He said following cost cutting initiatives, operating expenses went down by 26 percent to 28,5 million from $38, 4 million in 2014.
“The optimisation of the company’s cost base remains a key focus area in the period ahead…the company recorded a profit before tax of $2,2 million compared to a loss of $12,9 million recorded in the prior year.
“Interest expenses have come down by 10 percent to $1,5 million following the conversion of short term borrowings into a medium paper,” he said.
Lupepe said their newspaper division recorded an operating profit of $3, 6 million before finance costs compared to an operating loss of $60,000 for the previous year on cost management.
Zimpapers’ commercial printing division registered a 71 percent increase in revenue to $3, 6 million compared to $2, 1 million the previous year.
The growth was driven by improved capacity utilisation after the refurbishment of the printing press and retooling of the downstream operations.
From the broadcasting division, he said revenue improved by 10 percent from $3, 1million to $3, 4 million.
This was driven by new revenue streams.
On the outlook, Lupepe said the trading environment is expected to remain challenging for the foreseeable future.
“The company has started 2016 on a relatively positive note and the board is optimistic that performance for the year 2016 will compare favourably with that of 2015,” he said.
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