adminZimpapers posted a loss of $1,1 million after tax in the six months to 30 June down from $1,3 million the same period last year.
Zimpapers is the publisher of a number of newspapers which include Chronicle, Sunday News, B-Metro, uMthunywa, The Herald, The Sunday Mail, Kwayedza and Manica Post.
The newspapers division, with revenues of more than $18 million, posted a profit of $532 875.
The commercial division had a loss of $816 197 while Star FM, the recently launched radio station, contributed with a loss of $329 264.
In a statement accompanying the results, chairman Dr Paul Chimedza said group revenues increased by 12 percent to $19,5 million while costs increased by 13 percent to $7,1 million.
He said the newspapers division had performed well despite competition from other papers.
Dr Chimedza said the commercial printing division had reduced its operating loss for the same period last year and attributed this to improved capacity utilisation.
He said performance in the division was affected by huge overhead costs and a debt overhang, causing the group to come up with a staff rationalisation plan to reduce costs.
“Efforts are underway to rationalise staff at the division in order for the staffing levels to be commensurate with revenue generated, while awaiting proper recapitalisation when funds become available. The staff rationalisation will reduce operating costs and in turn is expected to improve performance in the second half of the year,” he said.
Dr Chimedza said the group was confident that it would achieve a profit in the last half of the year as various cost-cutting measures and revenue generating strategies bore fruit.
“The group is also confident that new kid on the block, Star FM, is going to positively contribute to the performance of the company in the second half, coupled with the festive season which has previously brought huge business volumes both to the newspaper and commercial divisions,” he said.
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Bongani Ndlovu