February 14, 2022
For the nine months ended December 31 2021, Radio Jamaica Limited’s (RJR) revenues rose by 14% from $3.79 billion in 2020 to $4.31 billion for the period under review. For the quarter, revenues closed at $1.45 billion (2020: $1.49 billion), representing a 2% decline year over year. RJR noted that the company suffered a $45 million dollar loss within the Audio-Visual Division due to decreased advertising spend from companies. Further noting that there was a softer than usual bump in ‘Christmas revenues’ due to companies choosing contain their advertising spend and delay product launch campaigns due to the perceived impact of the anticipated fourth wave of COVID-19.
Direct expenses grew 29% to $1.67 billion, versus the prior year’s figure of $1.29 billion. For the quarter, direct expenses rose 20% to close at $546.14 million (2020: $455.15 million).
As such, gross profit for the nine months amounted to $2.64 billion relative to $2.50 billion for the corresponding period in 2020. For the quarter, gross profit closed at $907.41 million (2020: $1.03 billion).
Total expenses experienced a 2% increase for the period under review, from $2.35 billion in 2020 to $2.41 billion in December 2021. As for the quarter, total expenses closed at $818.16 million (2020: $759.65 million).
There was an 1% increase in selling expenses to $790.07 million (2020: $780.71 million). RJR noted the movement was driven by, “the removal of no-movement days in October which resulted in increased print distribution costs, and the increase in agency commissions paid commensurate with a shift away from direct and towards commission-driven Advertising Agency business during the period.” RJR’s administrative expenses closed at $1.02 billion (2020: $1.05 billion), a 3% decline year over year due to non-recurrence of 2020 redundancy payments. The downwards trend stemmed from the non-recurrence of 2020 redundancy payments and the restoration of salaries to pre-pandemic levels.
Other operating expenses rose by 15% to $594.46 million relative to $518.50 million in 2020. The upward trend was attributable to increased costs for the maintenance of transmitters and other equipment. The movement according to RJR was due mainly to profit on sale of a transmitter tower.
RJR reported an improvement in other income which rose to $116.79 million in 2021 compared to the 2020’s figure of $49.84 million. While for the quarter, other income surged to $67.80 million (2020: $5.47million).
Operating profit amounted to $351.89 million for the period in review, compared to a profit of $206.79 million reported in 2020. As for the quarter, operating profit of $157.07 million was recorded. $279.73 million was booked for the prior year’s comparable period.
Finance costs remained stable at $32.42 million versus $32.75 million in the prior year. Finance cost for the quarter fell 16% to $9.89 million relative to $11.71 million booked for the three months ended December 2020.
RJR reported profit before tax of $319.47 million versus $174.05 million reported December 31, 2020. As for the quarter, profit before tax shrunk to $147.18 million versus $268.02 million a year earlier.
After tax charge of $73.89 million (2020: $46.94 million), RJR recorded a net profit of $245.58 million relative to $127.11 million for the prior year’s corresponding period. For the quarter, net profit totaled $108.11 million compared to $193.58 million in the same period last year.
Net profit attributable to shareholders amounted to $251.83 million for the period under review versus $154.84 million booked in the same period last year. For the quarter, net profit attributable to shareholder closed at $115.77 million versus $195.07 million reported twelve months earlier.
The earnings per share (EPS) for the nine month period amounted to $0.10 versus $0.05 in 2020. For the quarter, an EPS of $0.05 was recorded (2020: EPS of $0.08). The twelve months trailing earnings per share is $0.12. The number of shares used in this calculation was 2,422,487,654 units. RJR stock last traded on February 11, 2021 at $4.29 with a corresponding P/E ratio of 35.94 times.
Balance Sheet Highlights:
RJR as at December 31, 2021, recorded total assets of $5.11 billion, a 25 % increase when compared to $4.09 billion for the previous corresponding period. The increase was mainly attributable to an increase in ‘Fixed Assets’ which closed at $1.73 billion (2020: $1.39 billion). Inventories also contributed to the overall increase in the asset base with a 339% upward movement to $399.23 million relative to $90.90 million as of December 31, 2020.
Total Shareholders’ Equity closed at $2.73 billion, up 11% from $2.45 billion in 2020. This resulted in a book value of $1.13 (2020: $1.01).
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