November 11. 2021
For the six months ended September 30 2021, Radio Jamaica Limited’s (RJR) revenues rose by 24% from $2.31 billion in 2020 to $2.86 billion for the period under review. For the quarter, revenues closed at $1.44 billion (2020: $1.25 billion), representing a 15% year over year increase. The Company noted, “the results of the second quarter reflect a more normalized profile of the business, with the return of high-cost sporting events, necessary to satisfy viewer interest, but not supported by sufficient revenues to be strongly profitable.”
Direct expenses grew 35% to $1.12 billion, this compares to the prior year’s figure of $835.76 million. For the quarter, direct expenses went up by 30% amounting to $630.35 million (2020: $451.24 million). RJR noted, “this was mainly due to the cost of staging the Olympics in the current quarter. This event was not held last year.”
As such, gross profit for the six months amounted to $1.73 billion relative to $1.47 billion for the corresponding period in 2020. While for the quarter, gross profit closed at $806.59 million (2020: $794.82 million).
Total expenses reported a marginal 0.01% decline for the period under review, from $1.587 billion in 2020 to $1.586 billion in 2021. As for the quarter, total expenses closed at $791.76 million (2020: $902.56 million).
There was an 8% decrease in selling expenses to $508.89 million (2029: $555.79 million). For the quarter, selling expenses fell to $266.05 million (2020: $327.59 million). Whereas administrative expenses closed at $687.85 million (2020: $684.20 million). While administrative expenses for the quarter contracted by 17% to $325.75 million (2020: $394.17 million).
Other operating expenses rose by 12% to $390.21 million relative to $347.17 million in 2020. For the quarter, other operating expenses went up by 11% closing at $199.97 million (2020: $180.80 million).
Other income rose to $48.98 million in 2021 compared to the 2020’s figure of $44.37 million. While for the quarter, other income closed at $20.12 million (2020: $22.27 million).
Operating profit amounted to $194.83 million for the period in review, versus operating loss of $72.94 million reported in 2020. As for the quarter, operating profit of $34.95 million was recorded relative to an operating loss of $85.46 million booked in the prior comparable period.
Finance costs rose 7% year over year to $22.54 million versus $21.03 million in the prior year. While for the quarter, finance cost amounted to $10.37 million (2020: $10.29 million).
RJR reported profit before tax of $172.29 million versus a loss before tax of $93.97 million booked September 30, 2020. As for the second quarter, profit before tax closed at $24.58 million versus loss before tax of $95.76 million a year earlier.
After tax charge of $34.82 million, RJR recorded a net profit of $137.47 million relative to a loss of $66.48 million for the prior year’s corresponding period. For the quarter, net profit totalled $27.01 million compared to a net loss of $67.98 million in the same period last year.
Net profit attributable to shareholders amounted to $136.06 million for the period under review versus net loss attributable to shareholders of $40.22 million booked in the same period last year. For the quarter, net profit attributable to shareholder closed at $35.49 million versus net loss of $65.42 million reported twelve months earlier.
The earnings per share (EPS) for the six-month period amounted to $0.057 versus a loss per share (LPS) of $0.027 in 2020. For the quarter, EPS of $0.0112 (2020: LPS of $0.0281) was recorded. The twelve months trailing earnings per share is $0.14. The number of shares used in this calculation was 2,422,487,654 units. RJR stock last traded on November 11, 2021 at $3.90 with a corresponding P/E ratio of 27.23 times.
Balance Sheet Highlights:
RJR as at September 30, 2021, recorded total assets of $4.81 billion, a 24% increase when compared to $3.89 billion for the previous corresponding period. The increase was mainly attributable to an increase in ‘Receivables’ which closed at $1.54 billion (2020: $1.14 billion).
Total Shareholders’ Equity closed at $2.66 billion, up 18% from $2.26 billion last year. This resulted in a book value of $1.10 (2020: $0.93).
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