Zimpapers revenue up 4%

Published: 30 March 2018
ZIMPAPERS says revenue for the full year to December 31, 2017, rose 4 percent to $39,1 million, largely driven by growth in broadcasting and the commercial printing division.

While the newspaper division suffered a 3 percent decline in turnover compared with the previous comparable period, better costs management helped the company realise an overall after tax profit of $2,4 million, from $2 million in 2016.

Zimpapers is the country's largest integrated media group with interests in broadcasting, newspapers and commercial printing. Revenue from the newspaper division fell 3 percent to $28,4 million due to liquidity challenges that affected sales volumes. Profitability was, however, 44 percent better at $3,8 million from a year earlier.

"The improvement in profitability recorded during the year by the division was a result of better cost management," Zimpapers chairman Delma Lupepe said in a statement accompanying the financial results.

The commercial printing division registered a 36,3 percent growth in revenue to $5,6 million as import restriction on packaging products by the Government spurred demand. To meet the growing demand, Zimpapers invested in a second printing press during the year.

Revenue from the broadcasting division grew by 22 percent to $5,2 million on the back of increased advertising volumes. The division posted an operating profit of $600 000 compared with $500 000 in the previous year. Overall, operating expenses rose by 2,3 percent to $22,3 million on increased distribution costs.

Trade debtors were reduced by 12 percent to $9,1 million. Investment in capital expenditure grew to $1,9 million from $1,2 million in 2016. Resultantly, liabilities decreased by 11,6 percent to $28,1 million. Finance and administrative cost declined by 32,8 percent and 2,2 percent receptively, as management remained focused on costs management.

Commenting on the group's revenue diversification thrust, Mr Lupepe said the group will continue focusing on further strengthening the business's first digital strategy.

"Significant work on the product development, updating and enhancing the functionality of our digital infrastructure and modernising technology is being undertaken," he said.

"Emphasis will be placed on the development of diversified, sustainable digital revenue models.

"We have already started experimenting with new digital advertising solutions on our platforms in anticipation of increased demand for innovative advertising and marketing formats from our advertisers. We are aware of the changing needs of our advertisers in as far as news consumption habits and audience shift to digital platforms concerned, and we are prepared to meet them," added Mr Lupepe.

He said the group's digital first strategy would reinforce the group's leadership on Zimbabwe's media landscape while increasing the reach and influence. Zimpapers combined digital platforms have the largest digital audience in the country.

Going forward, investments in new products and creation of innovative products will ensures a competitive edge that will enhance the group's future profitability.
- zimpapers
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