By McPherse Thompson, Assistant financial news editor
A HEALTHY INCREASE in advertising sales and the benefits of lower newsprint prices, have combined to give The Gleaner Group of Companies a moderate 12 per cent increase in profit for the year ended December 2002.
The directors said that apart from Independent Radio Company, operators of Power 106 FM, the Group's subsidiary companies did not enjoy particularly good financial results for last year.
In a report to shareholders published earlier this week, The Gleaner Company said a major reason for the less than anticipated performance of its subsidiaries was that three overseas companies expended "a lot of money" on the start-up costs of the free weekly publication Extra launched in the United States in December 2001 and the United Kingdom and Canada during the past year.
While there has been no cover price for that newspaper, the company said those publications would be supported by advertising which currently enjoy a combined circulation of about 100,000 copies per issue.
"It is expected that for 2003, this publication will be viable in all three markets," according to the financial report, signed by Oliver Clarke, The Gleaner's chairman and managing director, and Christopher Roberts, financial director. The accounts show, before taxation but after exceptional items, a profit of about $277.1 million, just under $45.3 million more that the figure recorded in 2001. Profit after tax and minority interest was about $192 million, a 12 per cent increase above the $171 million recorded the previous year.
REVENUE
Revenue was up by $263 million, moving from $2.01 billion to $2.27 billion, but there was a net increase of almost $63 million in distribution costs, administrative and other expenses, which together totalled $854.9 million. The company actually managed to contain administrative expenses, reducing it from $318.2 million to $285 million. However, distribution costs went up $35.8 million to $328.7 million, and other operating expenses increased by $60.3 million to $241.1 million.
Earnings per stock unit on profit after taxation attributable to stockholders of The Gleaner, the parent company, was increased to 18.77 cents from 16.65 cents in 2001.
The Group accounts include The Gleaner Company's 10 subsidiaries: Associated Enterprise, Popular Printers, Sangster's Book Stores, The Book Shop, The Gleaner Online, Selecto Publications, Independent Radio Company, as well as the overseas subsidiaries, The Gleaner Company (NA) Limited, The Gleaner Company (NA) Incorporated and The Gleaner Company (UK).
