November 16. 2020
For the six months ended September 2020, Radio Jamaica Limited’s (RJR) revenues decreased by 16% from $2.75 billion in 2019 to $2.31 billion. For the quarter, revenues closed at $1.25 billion (2019: $1.39 billion), representing a 11% year over year decline. The Company noted, “the decline was due to heavy impact from COVID-19, Print and Audio segments were greatly impacted.”
Direct expenses declined 17% to $1.11 billion, this compares to the prior year’s figure of $1.34 billion. For the quarter, direct expenses went down by 6% amounting to $636.86 million (2019: $679.34 million).
As such, gross profit for the six months amounted to $1.20 billion relative to $1.41 billion for the corresponding period in 2019. While for the quarter, gross profit closed at $609.21 million (2019: $714.53 million).
Total expenses reduced by 6% for the period under review from $1.41 billion in 2019 to $1.32 billion in 2020. As for the quarter, total expenses closed at $716.94 million (2019: $728.73 million).
There was a 30% decrease in selling expenses to $285.16 million (2019: $406.26 million). For the quarter, selling expenses increased to $141.97 million (2019: $207.07 million). Whereas, administrative expenses closed at $684.20 million (2019: $609.60 million). While, administrative expenses, for the quarter, increased 24% to $394.17 million (2019: $318.82 million). RJR noted, “this was due to expenses for some redundancy cost, bad debt provisions and increased sanitation and safety protocols implemented to minimize the risk of staff contracting the Coronavirus in the workplace.”
Other operating expenses fell by 11% to $347.17 million relative to $391.76 million in 2019. For the quarter, other operating expenses went down by 11% closing at $180.80 million (2019: $202.84 million). The company noted, this is “reflects countermeasures implemented to adjust cost in the face of falling revenues.”
Other income fell to $44.37 million in 2020 compared to the 2019’s figure of $46.45 million. While for the quarter, other income closed at $22.27 million (2019: $19.59 million).
Operating loss amounted to $72.94 million for the period in review, versus operating profit of $52.94 million reported in 2019. As for the quarter, operating loss of $85.46 million was recorded relative to an operating profit of $5.39 million booked in the prior comparable period.
Finance costs decreased 14% year over year to $21.03 million versus $24.47 million in the prior year. While for the quarter, finance cost amounted to $10.29 million (2019: $12.79 million).
RJR reported a loss before tax of $93.97 million versus a profit before tax of $28.47 million booked September 30, 2019. As for the second quarter, loss before tax closed at $95.76 million (2019: loss before tax of $7.40 million).
After a tax credit of $27.50 million, RJR recorded a net profit of $66.48 million relative to a profit of $13.22 million for the prior year’s corresponding period in 2019. For the quarter, net loss totalled $67.98 million compared to a net loss of $11.20 million in the same period last year.
Net loss attributable to shareholders amounted to $40.22 million for the period under review versus net profit attributable to shareholders of $10.56 million booked in the same period last year. For the quarter, net loss attributable to shareholder closed at $65.42 million versus $11.42 million twelve months earlier.
The loss per share (LPS) for the six-month period amounted to $0.017 versus an earnings per share of $0.004 in 2019. For the quarter, LPS of $0.027 (2019: LPS of $0.005) was recorded. The twelve months trailing loss per share is $0.01. The number of shares used in this calculation was 2,422,487,654 units. RJR stock last traded on November 16, 2020 at $1.12.
Balance Sheet Highlights:
RJR as at September 30, 2020, recorded total assets of $3.89 billion, 3% increase when compared to $3.78 billion for the previous corresponding period. The increase was mainly attributable to an increase in ‘Receivables’ which closed at $1.14 billion (2019: $1.04 billion).
Total Shareholders’ Equity closed at $2.26 billion, down 2% from $2.31 billion last year. This resulted in a book value of $0.93 (2019: $0.97).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.