Radio Jamaica Limited (RJR)
For the three months ended June 30, 2017
Revenue for the first quarter of 2017 declined by 6.84% from $1.31 billion in 2016 to $1.22 billion. Direct expenses increased by 1.37% to $635.52 million in 2017 (2016:$626.92 million). The company stated that this was due to “increased fees associated with expanding 1spotmedia, as well as the impact of contractual obligations for salary increases to staff”.
As such, gross profit amounted to $583.64 million relative to $681.82 million for the corresponding period in 2016.
Operating costs declined for the period under review by 1.3% to $661.87 million in 2017 from $670.62 million in 2016. This was attributable to 4.3% decline in selling expenses to $192.72 million (2016: $201.41 million), and a 7.3% decline in administrative expenses to $290.11 million (2016: $312.93 million) this was due to “synergies derived from the reduction in cost of insurance, security, maintenance and other administrative expenses”. Other operating expenses rose 14.6% to $179.04 million relative to $156.28 million in 2016.
Other income amounted to $41.98 million compared to the 2016 figure of $66.37 million. The company reported an Operating Loss of $36.26 million compared to a profit of $77.57 million in 2016.
Finance costs declined 53.8% year on year to $5.97 million when compared to the corresponding period in 2016 figure of $12.94 million. Tax expenses declined by 50.6% to $5.06 million from $10.24 million.
Consequently a net loss of $47.30 million was reported relative to net income of $54.39 million in 2016.
The loss per share for the three month period amounted to $0.02 compared to earnings per share of $0.02 reported in 2016. The twelve months trailing earnings per share is $0.02, the number of shares used in this calculation was 2,422,487,654 units.
According to the company “RJR is still built around its advantages of offering credibility, local content and use of multiple media platforms, including new media platforms, to our clients and audiences and is now focused on accelerating several projects and activities to regain shortfalls experienced in this quarter”.
Balance Sheet Highlights:
As at June 30, 2017, the company recorded total assets of $3.99 billion, with fixed assets representing the largest percentage, amounting to $1.48 billion.
Total Stockholders’ equity as at June 30, 2017 closed at $2.55 billion, resulting in a book value of $1.05.
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