Chronicle Editor
Nqobile Bhebhe, Online Reporter
THE country’s largest integrated media group, Zimpapers (1980) Limited grew its revenue by 61 percent to Z$18.6 billion for the year ended 31 December from Z$11.6 billion recorded in the prior period.
In a statement accompanying the financial results for the year ended 31 December, the Zimbabwe Stock Exchange-listed media group board chairman, Mr Tommy Sithole said in the period under review, the media environment continued to be stable.
“Recovery of our printed newspapers, which had taken a knock during the Covid-19 years is on course, whilst the digital platforms are enjoying remarkable growth in audiences.
“Radio continues to attract huge audiences while television is still an area of potential growth. The newly licensed television stations, including our own Zimpapers Television Network (ZTN), are steadily finding their place in a market that for years had been dominated by one player,” said Mr Sithole.
Mr Sithole said despite the challenging operating environment, the company grew its revenue by 61 percent to Z$18.6 billion from Z$11.6 billion recorded for the same period in 2021.
“Owing to inflationary pressures and unabated increase in the cost of imported raw materials, gross profit margin declined to 63 percent from 66 percent for the same period last year.
“Nevertheless, the company improved its earnings before interest and tax (EBIT) margin to 11 percent compared to nine percent for the same period last year. This was a result of improved overheads management which were at 54 percent to turnover compared to 58 percent for last year.”
He added that owing to tight liquidity arising from delayed payments by most of our clients and the required capital expenditure, the company had to access costly short-term funds to meet its working capital needs.
“This had a negative impact of increasing the cost of borrowing to Z$610.7 million. Profitability for the company was further affected by a monetary loss adjustment of Z$940.8 million that was recorded during the period under review.
Resultantly, a net profit before tax of Z$384.7 million was recorded compared to Z$494.9 million for the prior year,” he noted.
The Newspapers Division increased its top line by 59 percent mainly as a result of the need to protect margins in a hyperinflationary environment.
“Cost optimisation remained critical in ensuring its survival and improving the profit margins of the division. The division recorded earnings before interest, tax, and monetary adjustments of Z$1.9 billion.”
The commercial printing division recorded a 63 percent revenue growth driven by some volume growth in labels and general printing.
In line with the revenue growth and cost optimisation interventions, the unit posted earnings before interest, tax, and monetary adjustment of Z$443.0 million for the period under review.
The chairman noted that in the period under review, the unit continued to face challenges in obtaining adequate foreign currency for importation of critical raw materials, resulting in a negative impact on the ability of the division to stretch its growth ambitions.
Commenting on the broadcasting division, the chairman said the top line grew by 67 percent compared to the prior period, adding that growth in revenue was driven by both radio and television units which grew by 74 percent and 42 percent respectively.
The broadcasting division’s overall profitability continued to be weighed down by the newly licensed television channel that was launched on DSTV channel 294 in May 2022.
The channel has however been gaining acceptance in the market and its prospects are very high.
Mr Sithole said the media group, as buttressed by Zimbabwe All Media Products Survey (ZAMPS), the leading media house remains by far the most trusted source of credible news and information.
“We continue to make investments into our journalism through training and injection of new skills as we seek to remain relevant in the face of other competing sources of news and information.
“We, by far, remain the most trusted source of credible news and information as confirmed by results of the Zimbabwe All Media Products Survey (ZAMPS), where our platforms are the most dominant.
“We continue to value professional and ethical journalism, which is the mainstay of mainstream journalism in an environment where fake news continues to spread, particularly through social media,”
The group comprises 10 newspapers; four radio stations and a television station, ZTN. Its publications include flagship dailies – Chronicle and The Herald, weeklies – The Sunday Mail, Sunday News and Business Weekly, tabloids B-Metro and H-Metro, Manica Post and indigenous languages papers — uMthunywa and Kwayedza.
Recently, the Zimpapers group’s Kwayedza newspaper launched a new baby titled ‘Kwayedza Dzidza’ which will solely publish educational content for school-going children.
The group also publishes the Suburban and runs Star FM, Diamond FM, Nyaminyami FM and Capitalk.
Online Reporter