July 7, 2023
For the twelve months ended March 31 2023, Radio Jamaica Limited’s (RJR) revenues fell by 5% from $5.71 billion in 2022 to $5.44 billion for the period under review. For the quarter, revenues closed at $1.25 billion (2022: $1.4 billion), representing a 11% decline year over year.
Direct expenses grew 14% to $2.86 billion, versus the prior year’s figure of $2.51 billion. For the quarter, direct expenses rose 22% to close at $1.02 billion (2022: $838.93 million).
As such, gross profit for the twelve months amounted to $2.57 billion relative to $3.20 billion for the corresponding period in 2022. For the quarter, gross profit closed at $225.54 million (2022: $561.57 million).
Total expenses experienced a 2% increase for the period under review, from $2.86 billion in 2022 to $2.93 billion in March 2023. As for the quarter, total expenses closed at $388.43 million (2022: $458.54 million).
There was a 20% decrease in selling expenses to $677.74 million (2022: $844.61 million).
Other operating expenses rose by 25% to $912.86 million relative to $728.75 million in 2022. RJR reported an improvement in other income which rose to $156.19 million in 2023 compared to the 2022’s figure of $130.81 million. While for the quarter, other income significantly increased to $46.46 million (2022: $14.02 million).
Operating loss amounted to $200.36 million for the period in review, compared to a profit of $468.94 million reported in 2022. As for the quarter, operating loss of $116.43 million was recorded versus operating income of $117.05 million was booked for the prior year’s comparable period.
Finance costs remained stable at $52.93 million versus $47.90 million in the prior year. Finance cost for the quarter fell 4% to $14.90 million relative to $15.48 million booked for the three months ended March 2022.
RJR reported a Bargain purchase gain of $444.20 million which represented the amalgamation of Radio Jamaica Limited (RJL) and 1834 Investments.
RJR reported profit before tax of $190.79 million versus $408.76 million reported March 31, 2022. As for the quarter, loss before tax fell to $121.07 million versus a profit of $89.29 million a year earlier.
After tax credit of $5.73 million (2022: tax charge of $67.07 million), RJR recorded a net profit of $196.52 million relative to $341.69 million for the prior year’s corresponding period. For the quarter, net loss totaled $132.60 million compared to a profit of $96.11 million in the same period last year.
For the quarter, net loss attributable to shareholders closed at $128.99 million versus a profit of $89.86 million reported twelve months earlier.
The earnings per share (EPS) for the twelve-month period amounted to $0.08 versus $0.14 in 2022. For the quarter, a Loss Per Share of $0.05 was recorded (2022: EPS of $0.04). The twelve months trailing earnings per share is $0.08. The number of shares used in this calculation was 2,422,487,654 units. RJR stock last traded on July 6, 2023 at $1.73 with a corresponding P/E ratio of 21.33 times.
Balance Sheet Highlights:
RJR as at March 31, 2023, recorded total assets of $6.21 billion, a 24% increase when compared to $4.99 billion for the previous corresponding period. The increase was mainly attributable to an increase in ‘Fixed Assets’ which closed at $3.17 billion (2022: $1.98 billion). ‘Investment Securities’ also contributed to the overall increase in the asset base with a 1068% upward movement to $283.34 million relative to $24.27 million as of March 31, 2022.
Total Shareholders’ Equity closed at $4.62 billion, up 66% from $2.79 billion in 2022. This resulted in a book value of $1.91 (2022: $1.15).
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