Zimpapers revenue growth up 74%

Sikhulekelani Moyo,Business Reporter
THE country’s largest integrated media house, Zimbabwe Newspapers (1980) Limited (Zimpapers) has registered a 74 percent revenue growth to $2,003 billion in hyperinflation terms for the nine months ended September 30, 2021.

In the same period last year, the group’s revenue stood at $1,149 billion. During the period under review, all Zimpapers divisions, which are the Digital and Publishing Division (DAP), the Radio Broadcasting Division (RBD), the Commercial Printing Division (CPD) and Zimpapers Television Network (ZTN), recorded positive growth in historic and hyperinflation terms.

Group chief executive officer Mr Pikirayi Deketeke said all the divisions recorded some revenue growth.
“The group recorded a 74 percent revenue growth to $2,003 billion compared to $1,149 billion for the same period last year. The DAP division continued to contribute significantly to the group’s revenue followed by CPD that was at 17 percent.

“The RBD contributed 14 percent whilst ZTN contributed four percent,” he said.
Despite the hyperinflation environment, Mr Deketeke said the group improved its net profit before monetary adjustment margin to 12,2 percent compared to 10,8 percent for the same period last year.

Year-on-year inflation continued to decline from 659,4 percent recorded in the same period in 2020 to 106,6 percent recorded in June this year. It further declined to 51,5 percent by the end of September this year.
Mr Deketeke said in the line with improved revenue growth, the group recorded operating profit before monetary adjustment of $244,9 million when compared to $124,2 million for the corresponding period in 2020.

The trading environment during the third quarter of this year has been stable following the slowdown of Covid-19 infections and the relaxation of the lockdown restrictions.

He said there was also improved availability of foreign exchange while the official exchange rate was relatively stable.

“The DAP recorded a 24,7 percent volume growth for the quarter when compared to the same period last year. This growth follows the 20,7 percent recorded for the second quarter when compared to last year,” said Mr Deketeke.

The RBD recorded a 2,7 percent volume increase for the third quarter when compared to the same period last year. On year-to-date basis, the RBD was 2,4 percent above the same period in 2020 and thus reflecting a recovery from the 3 percent recorded in the first quarter this year.

Mr Deketeke said the CPD volume performance was 54 percent better than the same period last year and this was an improvement from the negative 23 percent recorded for the second quarter when compared to 2020.

“ZTN recorded 51 percent volume growth for the quarter and 102,1 percent on year-to-date when to the same period last year. This was a result of the increase in the station’s audience and brand endorsements,” he said. — @SikhulekelaniM1