Zimbabwe Newspapers 1980 Limited (Zimpapers) newspaper division revenue tumbled 12 percent down for half year ended June 2017 to $13.5 million compared to the same period last year.
According to the group chairperson, Delma Lupepe’s report, despite the revenue loss, the newspaper division sustained an operating profit of $1.4 million before finance costs on the backdrop of effective cost containment initiatives.
“Despite the revenue loss, the newspaper division sustained an operating profit of $1.4 million before finance costs on the backdrop of effective cost containment initiatives. In a highly competitive environment, the division continues to perform well.
“The Commercial printing division recorded a 33% revenue growth to $2.4 million from $1.8 million for the same period last year.
“Consequently, operating profit before tax and interest was $0.5 million compared to $0.2 million for the previous year.
“Following an improvement in efficiency optimisation, the division has managed to more than meet the expectation of its valued clients who include the beverage manufacturers, food processors, publishers and manufacturing companies,” said Lupepe.
He added that the broadcasting division recorded a revenue growth on the back of full commissioning of Diamond FM and aggressive brand awareness.
“The broadcasting division recorded a 22% growth in revenue to $2.3 million on the back of full commissioning of Diamond FM and aggressive brand awareness.
“The division posted an operating profit before interest and tax of $0.3 million compared to the previous year performance of $0.2 million for the half year period,” he said.
Lupepe added that they recorded a drop in revenue which was caused by a reduction in circulation volumes mainly as a result of liquidity constraints arising from cash shortages.
“The company recorded revenue of $18.3 million during the first six months of the year compared to $19.0 million for the same period last year.
“The 4% drop in revenue was caused by a reduction in circulation volumes mainly as a result of liquidity constraints arising from cash shortages.
“Despite the adverse revenue performance compared to last year, the Company recorded 8 percentage point improvement in gross profit percentage as a result of better cost management. A gross profit of $13.7 million was recorded compared to $12.7 million recorded during the same period last year,” added Lupepe.
