The Sunday News
Judith Phiri, Business Reporter
ZIMBABWE’S leading diversified media group, Zimbabwe Newspapers (1980) Limited (Zimpapers) has recorded a 63 percent revenue growth to ZWL$1.2 billion compared to ZWL$0.737 billion for the same period last year, for the three months to 31 March 2022.
All the group’s operating divisions recorded volume recovery for the period under review. This was mainly a result of the lower base recorded in the prior year (2021) owing to strict lockdowns that were in place to contain the spread of the Covid-19 infections.
In the company’s trading update, the Group’s chief executive officer (CEO) Mr Pikirayi Deketeke said: “In line with volume recover, the Group recorded a 63 percent revenue growth to ZWL$1.200 billion compared to ZWL$0.737 billion for the same period last year.”
He said the volumes for the Digital and Publishing Division (DAP) grew by 38 percent during the first quarter of 2022 when compared to the same period last year.
Mr Deketeke said the division’s focus on volume recovery witnessed growth in both circulation and advertising.
“To that effect, circulation was 46 percent better driven by subscriptions recovery, whilst advertising was 26 percent favourable to the same period last year.”
He said the Radio and Broadcasting Division (RBD) recorded a 36 percent volume growth due to increased advertising campaigns by both private sector and the national activities that took place during the period under review.
Mr Deketeke said the Commercial Printing Division (CPD) volumes for the quarter were 56 percent better than the same period last year.
He said it was a result of further relaxation of the Covid-19 lockdown restrictions, improved availability of critical raw materials in the first two months of the quarter and improved machine reliability.
Mr Deketeke added: “Whilst DAP continued to be the biggest revenue contributor to the Group, at 59 percent it lost 7 percentage points to CPD (4 percent) and RBD (3 percent). The CPD improved its revenue contribution from 17 percent to 21 percent whilst the RBD improved from 14 percent to 17 percent. The Zimpapers Television Network (ZTN) channel contributed 4 percent.”
He said the Group recorded a net profit before monetary adjustments of ZWL$107 million compared to ZWL$88 million for the same period last year.
Despite the profit before monetary adjustments was 21 percent better than the same period last year, the Group CEO said the net profit margin declined to 9 percent compared to 12.2 percent for the prior year.
“The decline in net profit margin was a result of the inflationary pressures that significantly increased operating costs as well as ZTN costs in preparation for launch.”
Mr Deketeke said the company expects to launch its ZTN channel in the second quarter of the year which will further increase the revenue base of Zimpapers as well as fulfil its vision of becoming fully integrated media house.
He said despite the challenging operating environment, the second quarter of the year, as has always been the case over the years, is expected to record improved performance as the economy continues to open up.
However, Mr Deketeke said the continued hyperinflationary pressures and run-away exchange rates, if not controlled will seriously affect the performance of the company.
“The Government of Zimbabwe is making concerted efforts to stabilise the economy as enunciated by the President. The Russia/Ukraine geopolitical conflict will continue to present supply chain disruptions that may have a detrimental effect to the performance of the Company for the remainder of the year.”
