By Al Edwards, Business Co-ordinatorUNAUDITED RESULTS for the nine months ended December 31, 2003 reveal mixed fortunes for one of the country's leading media groups, Radio Jamaica Limited.
Revenues of $765.8 million earned for the period reflected an 11 per cent increase over the corresponding period last year. Revenues of $286 million for the quarter under review contributed 37 per cent of the total earned to date and reflected a 16 per cent increase over the prior year.
According to the chairman/managing director Lester Spaulding in his Interim Report to Stockholders, "This increase is attributable to the creation of new programming and the returns associated with investments in major sporting events."
Last year RJR secured the exclusive rights to air the Wimbledon tennis tournament in Jamaica.
PROFITS
Gross profit margin reflected a 10.6 per cent increase over the prior year while the margin for operating profit fell by two per cent when compared to the same period last year.
The increases in administrative expenses and other operating expenses resulted from costs associated with the new Television Production and News/Sports Complex, together with professional fees and the continued enhancement of IT and Internet facilities within the Group.
The third quarter generated profit before tax of $69.7 million, a decline of six per cent compared to the same period last year. This slight fall in profits was put down to increased costs associated with the temporary, simultaneous operation of the existing and the new TV Production and News/Sports Complex.
The group's net profit attributable to stockholders for the year under review rose to $118.8 million (2001/2002: $70.4 million after adjusting for exceptional item), an increase of 69 per cent. Group turnover for the year increased by 4.9 per cent to $893.9
Television Jamaica Limited increased its dominance of the television market and recorded revenues of $442.3 million which represents 50 per cent of the Group's turnover.
Total net assets increased by 58 per cent to $880 million due mainly to the increase in fixed assets as a result of the construction of the new facilities. Mr. Spaulding concluded: "The consolidation of our operations by the end of our financial year is anticipated to lead to greater efficiencies that will result in improved future financial performance to the benefit of our shareholders."
UNISSUED SHARES
On 12 June 1997, RJR Communications acquired the fixed assets of the Government controlled Jamaica Broadcasting Corporation (JBC) Radio 2 for the sum of $28 million. The purchase price was satisfied by the issue of 8,624,424 ordinary shares of 50 cents each to JBC issued at a premium of $2.75 per share.
Upon the issue of these shares, a share premium of $23,688,00 will be created. However at year end these shares had not been issued. Mr. Spaulding could not be reached yesterday for a comment on this situation.
Although RJLs dividend payments have been conservative at best, its stock ranked third among the top ten performing stocks of 2002 with a gain of 269.5 per cent. First and second place went to Jamaica Producers Group and Courts Jamaica respectively. Radio Jamaica Limited shares traded at $5.11 yesterday.
