RJR reports six months net profit attributable to shareholders of $10.56 million

Date: November 15, 2019

For the six months ended September 2019, Radio Jamaica Limited’s (RJR) revenues increased by 2% from $2.71 billion in 2018 to $2.75 billion. For the quarter, revenues closed at $1.39 billion (2018: $1.36 billion), representing a 3% growth. RJR indicated that, “this was largely due to the performance of the Audio-Visual segment of the business.”

Direct expenses declined 11% to $1.34 billion, this compares to the prior year’s figure of $1.50 billion.  For the quarter, direct expenses went down by 9% amounting to $679.34 million (2018: $746.92 million). The company stated that, “this was mainly due to the non-recurrence of costs associated with the 2018 FIFA World Cup project.”

As such, gross profit for the six months amounted to $1.41 billion relative to $1.21 billion for the corresponding period in 2018. While for the quarter, gross profit closed at $714.53 million (2018: $611.48 million).

Total expenses increased slightly for the period under review by 3% from $1.37 billion in 2018 to $1.41 billion in 2019.

There was a 1% increase in selling expenses to $406.26 million (2018: $401.46 million). Whereas, administrative expenses closed at $609.60 million (2018: $612.25 million). For the quarter, selling expenses increased to $207.07 million (2018: $204.17 million). RJR mentioned that, “ this was due to higher agency commissions, associated with the higher revenues in the quarter.” While, administrative expenses, for the quarter, slightly declined to $318.82 million (2018: $321.39 million). Management mentioned, “this was despite general inflation effects and contracted union-negotiated salary increases.”

Other operating expenses rose by 10% to $391.76 million relative to $356.86 million in 2018. For the quarter, other operating expenses went up by 15% closing at $202.84 million (2018: $176.70 million). RJR noted, “this was as a result of higher utility costs.”

Other income fell to $46.45 million in 2019 compared to the 2018’s figure of $67.20 million. While for the quarter, other income closed at $19.59 million (2018: $44.84 million). RJR stated, “this was mainly driven by a reduction in other income in the Print Segment.”

Operating profit amounted to $52.94 million for the period in review, versus operating loss of $94.45 million reported in 2018. As for the quarter, operating profit of $5.39 million was recorded relative to an operating loss of $45.93 million booked in the prior comparable period.

Finance costs decreased 26% year over year to $24.47 million versus $32.96 million in the prior year. While for the quarter, finance cost amounted to $12.79 million (2018: $16.09 million).

After incurring taxes of $15.25 million, RJR recorded a net profit of $13.22 million relative to a loss of $133.31 million for the prior year’s corresponding period in 2018. For the quarter, net loss totalled $11.20 million compared to a net loss of $63.12 million in the same period last year.

Net profit attributable to shareholders amounted to $10.56 million for the period under review versus net loss attributable to shareholders of $134.15 million booked in the same period last year.

The earnings per share (EPS) for the six-month period amounted to $0.004 versus $0.06 in 2018. For the quarter, LPS of $0.005 was recorded versus a LPS of $0.026. The twelve months trailing earnings per share is $0.05. The number of shares used in this calculation was 2,422,487,654 units. RJR stock last traded on November 14, 2019 at $1.86.

The Company highlighted that, “ in television, we launched TVJ International during the quarter under review with the channel being accessed in the Cayman Islands under contract, with Belize testing at present and a number of other Caribbean territories in different stages of negotiation. In addition, a significant development during the period was the execution of an agreement between FLOW and TVJ under which the telecommunication provider has started to pay for the use of the TVJ channel on its various subscription platforms. Under this agreement, FLOW is also accessing TVJ Sports Network and Reggae Entertainment Television (RETV).”

Balance Sheet Highlights:

RJR as at September 30, 2019, recorded total assets of $3.77 billion when compared to $3.76 billion for the previous corresponding period. The increase was attributable to an increase in ‘Fixed Assets’ and ‘Receivables’ which closed at $1.58 billion (2018: $1.54 billion) and $1.04 billion (2018: $1.02 billion), respectively.

Total Shareholders’ Equity closed at $2.31 billion, up 2% from $2.27 billion last year. This resulted in a book value of $0.96 (2018: $0.94).


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