Business Reporter
THE country’s largest integrated media group, Zimpapers (1980) Limited’s year-to-date revenue has grown by 67 percent to $12,7 billion in hyperinflation terms when compared to $7,6 billion for the same period last year, group chief executive, Mr Pikirayi Deketeke, said yesterday.

The positive trajectory has been supported by volume growth across the group’s operating business units.

This is despite subdued advertising volumes mainly in the digital and publishing divisions due to reduced market spending resulting from the measures instituted by the Government to stabilise the exchange rate and tame resurgent inflation.

In a trading update for the third quarter ended 30 September 2022, he said revenue for the period under review increased by 14 percent compared to the second quarter, which was in line with the 13,8 percent average inflation for the period.

“Resultantly, year-to-date net profit before tax and monetary adjustments increased by 51 percent to ZW$1,4 billion when compared to the same period last year,” said Mr Deketeke.

“Net profit margin of 11 percent was recorded compared to 12 percent for the same period last year. Net profit margin growth was affected by high cost of borrowing following the significant increase in borrowing costs during the quarter.

“Owing to limited foreign currency availability, exchange losses of ZW$115,7 million were recorded that had a negative effect on the overall profitability of the business.”

While the newspaper division continued to be the biggest revenue contributor at 62 percent, the Commercial Printing Division improved its revenue contribution to the group from 10 to 17 percent while the radio unit improved from 14 to 16 percent with the Zimpapers Television Network (ZTN), contributing four percent.

Mr Deketeke, however, said the group’s liquidity was being affected by slow paying debtors who owe it ZW$2,3 billion and collections from these debtors were being hampered mainly by the prevailing liquidity crunch.

“However, management is making concerted efforts to improve the overall liquidity of the company by focusing on intense collections, among other measures,” he said.

While Government’s corrective fiscal and monetary policy measures are worthwhile, the interventions had a negative effect on the overall demand for the division’s products as disposable income shrank.

This was, however, partially offset by an improved performance by the group’s commercial printing division, which benefited from uninterrupted availability of raw materials.

Business Reporter
THE country’s largest integrated media group, Zimpapers (1980) Limited’s year-to-date revenue has grown by 67 percent to $12,7 billion in hyperinflation terms when compared to $7,6 billion for the same period last year, group chief executive, Mr Pikirayi Deketeke, said yesterday.

The positive trajectory has been supported by volume growth across the group’s operating business units.

This is despite subdued advertising volumes mainly in the digital and publishing divisions due to reduced market spending resulting from the measures instituted by the Government to stabilise the exchange rate and tame resurgent inflation.

In a trading update for the third quarter ended 30 September 2022, he said revenue for the period under review increased by 14 percent compared to the second quarter, which was in line with the 13,8 percent average inflation for the period.

“Resultantly, year-to-date net profit before tax and monetary adjustments increased by 51 percent to ZW$1,4 billion when compared to the same period last year,” said Mr Deketeke.

“Net profit margin of 11 percent was recorded compared to 12 percent for the same period last year. Net profit margin growth was affected by high cost of borrowing following the significant increase in borrowing costs during the quarter.

“Owing to limited foreign currency availability, exchange losses of ZW$115,7 million were recorded that had a negative effect on the overall profitability of the business.”

While the newspaper division continued to be the biggest revenue contributor at 62 percent, the Commercial Printing Division improved its revenue contribution to the group from 10 to 17 percent while the radio unit improved from 14 to 16 percent with the Zimpapers Television Network (ZTN), contributing four percent.

Mr Deketeke, however, said the group’s liquidity was being affected by slow paying debtors who owe it ZW$2,3 billion and collections from these debtors were being hampered mainly by the prevailing liquidity crunch.

“However, management is making concerted efforts to improve the overall liquidity of the company by focusing on intense collections, among other measures,” he said.

While Government’s corrective fiscal and monetary policy measures are worthwhile, the interventions had a negative effect on the overall demand for the division’s products as disposable income shrank.

This was, however, partially offset by an improved performance by the group’s commercial printing division, which benefited from uninterrupted availability of raw materials.