Healthy increase in revenues for RJR Group

THE RJR Group reported a 23 per cent increase in revenues to $615.4 million (1999: $499.8 million) and a 42 per cent increase in after tax profits to $41.3 million (1999: 29.2 million), according to its audited results for 2000.

Television Jamaica contributed to the increase in revenues with revenues from television operations increasing by 24 per cent from $214.6 million to $265.4 million.

Subsidiaries' contribution to after tax profit increased from $9.9 million to $17.6 million. Pre-tax profit increased by 59 per cent but after tax results in 1999 included the effect of a special $2 million tax credit.

Shareholders Funds of $213 million reflected an increase of 17 per cent over the previous year. The return of 19 per cent on Shareholders Funds compared favourably with the 16 per cent return achieved in 1999.

Dividends to be paid to shareholders total $10.3 million or 25 per cent of the after tax profit and have been provided for in the accounts.

According to the Group's directors, RJR invested in brand differentiation and in the leveraging of its flagship brand. The brand break-out strategy meant that each brand operated as a separate business with brand managers, separate revenue targets and individual sales teams.

"Each station achieved its targets during 2000 and the third quarter of July to September saw the greatest revenue growth across all brands. This combined with a strong fourth quarter, enabled the Group to achieve a record consolidated year-on-year revenue growth of over $115 million," the directors said in their statement.

RJR's shares appreciated by 38 per cent during 2000, opening the year at $1.05 per unit and ending at $1.45 per unit. At the end of December 2000, the Jamaica Stock Exchange index closed at 26,895 points, a 23 per cent increase. Volume of RJR's stock was 21,846,000 units and the high and low month end prices of the stock within 2000 were $3.09 (April) and $1.20 (October).

Radio Jamaica's website recorded a high of 20 million hits per month during 2000. Live streaming was the highlight of the website which continued to attract advertisers and to provide value added services to Jamaican businesses. Reditech, which formerly provided only wireless background music to some 200 customers islandwide, was expanded to include information technology support, Internet and graphics service. Reditech was renamed Multi-Media Jamaica in November 2000.

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