Radio Jamaica Limited (RJR), revenue for the first three months ended June 30, 2020, decreased by 22% from $1.36 billion in 2019 to $1.06 billion. RJR stated that this was “largely experienced in the Print and Audio segments of the business heavily impacted by the onslaught of the COVID-19 pandemic.” However, “revenue declines were partly offset by advertising and promotional initiatives launched by the Group in online education programmes and virtual parties,” as per Management.

Direct expenses declined to $469.53 million, this compares to the prior year’s figure of $659.32 million, representing a decrease of 29%. Management noted that this was mainly due to, “the reduction in revenues experienced and cost reduction measures implemented in response to the impact of COVID-19.”

As such, gross profit amounted to $590.02 million relative to $699.58 million for the corresponding period in 2019.

Operating expenses decreased for the period under review by 12% from $678.90 million in 2019 to $599.59 million in 2020. There was a 28% decrease in selling expenses to $143.19 million (2019: $199.19 million), and a marginal decline in administrative expenses to $290.02 million (2019: $290.78 million). RJR noted that administrative expenses, “were marginally lower than the prior year’s results due to the increased sanitation and safety protocols implemented to minimize risk of contraction of the Coronavirus in the workplace.” Other operating expenses fell 12% to $166.38 million relative to $188.92 million in 2019. The Company mentioned that this was, “reflecting countermeasures in place to adjust costs in the face of falling revenues.”

Other income fell for the period to $22.10 million compared to the 2019 figure of $26.87 million. RJR mentioned that the decrease was, “mainly due to general reduction in business activities in the quarter.”

Operating profit closed the period in review at $12.52 million versus operating profit of $47.55 million in 2019.

Finance costs decreased 8% year on year to $10.74 million when compared to the corresponding period in 2019 figure of $11.67 million.

Profit before taxation closed the three months at $1.78 million relative to profit before taxation of $35.87 million documented in the previous comparable period.

Tax expenses fell to $284,000 in 2020 from the $11.46 million incurred in 2019, which resulted in net profit for the period closing at $1.50 million relative to a profit of $24.42 million for the prior year’s corresponding period in 2019. Net profit attributable to shareholders amounted to $25.19 million versus net profit attributable to shareholders of $21.98 million booked in the same period last year.

The earnings per share (EPS) for the three-month period amounted to $0.01 versus an EPS of $0.009 in 2019. The twelve months trailing earnings per share is $0.017. The number of shares used in this calculation was 2,422,487,654 units. RJR stock last traded on August 14, 2020 at $1.31.

In addition, the Company stated that, “the Group continued its cost reduction measures, inclusive of layoffs, salary cuts and suspension of some services in an effort to mitigate the reduction in revenues during the quarter. Safety protocols were strengthened and maintained at a considerably higher cost than budgeted in order to safeguard the wellbeing of our staff members and customers.”

Balance Sheet Highlights: 

The Company, as at June 30, 2020 recorded total assets of $3.78 billion, a decrease of 1% when compared to $3.83 billion for the previous corresponding period. This was attributable to a 43% decrease in ‘Cash and Bank Balances’ to $254.73 million (2019: $448.14 million), and partly tempered by an 11% increase in ‘Receivables’ to $1.15 billion (2019: $1.03 billion).

Total Stockholders’ equity as at June 30, 2020 closed at $2.32 billion, a decrease of 2% from $2.37 billion last year. This resulted in a book value of $0.96 compared to a 2019 value of $0.98.