By Dennise Williams, Staff Reporter
Lester Spaulding (left), chairman and managing director of RJR, smiles while listening to questions from the audience at the Mayberry Investors Seminar at the Knutsford Court Hotel on Wednesday. Seated next to him is Gary Allen, RJR director of operations, and to the far right is Christopher Berry, chairman of Mayberry Investments. - WINSTON SILL/Freelance Photographer
"WE HAVE been vindicated! We have proven our detractors wrong, who spoke against our purchase of the Jamaica Broadcasting Corporation (JBC) in 1997," stated a very pleased Lester Spaulding, chairman and managing director of the RJR Communications Group.
Mr. Spaulding was speaking at the investor seminar put on by Mayberry Investments Limited at the Knutsford Court Hotel on Wednesday. During their presentation, the management team of RJR spoke of plans to export their media products to the United States and the United Kingdom, with the television component of the media conglomerate being an important plank of their plans.
"We earned profits for 55 years straight with the exception of one, 1997 when we bought JBC and renamed it Television Jamaica (TVJ). Our last six months figures show that we have a revenue increase of 14 per cent and, yes, our gross profit increased by six per cent because of the higher cost of sales due to the exclusive showing of premium sports events, the Olympics and Rising Stars. But this was done to increase market share."
INVESTMENT
Mr. Spaulding said, "Revenue follows market share but you have to make the investment first. Buying a television station was part of the plan to be a diversified media corporation with radio, television and multimedia. And television was important but many persons thought that it would be our ruin. We proved them wrong. Our profits have grown each year for the last five years and we operate in Jamaica and within the Caribbean throughout CANA, Caribbean Broadcasting Union and the Caribbean Media Broadcasting."
He continued, "We have had 97 per cent growth in revenue in the last five years, 186 per cent growth in profits for the last five years and 216 per cent increase in shareholder funds. And let me say that TVJ is profitable." Television is a business that has 'peaks and valleys' in terms of revenue. Mr. Spaulding said television has, "a faster increase in revenue earnings than radio but it is a still a long term investment."
Gary Allen, RJR director of operations said, "A media survey done in 2002 and our research done in 2003 show that TVJ has 56 per cent of market share with one million viewers of Prime Time News. And let me add that one million viewers also tuned into Rising Stars."
PRODUCTION CENTRE
Mr. Allen explained, "TVJ has a 13,000 square foot production centre with the most advanced equipment in the English-speaking Caribbean. We have a real time connection with Montego Bay and an efficient production method that is based on digital, not taped newscasts."
And the grand plan for TVJ is to export Jamaican culture, lifestyle and entertainment and, according to Mr. Allen, "cash in on that with export quality programming." Currently, RJR exports Prime Time News, Schools Challenge Quiz and The Entertainment Report. "It is our goal to have returns of at least $62 for every $1 spent with exports to the US, or $115 when we export to England."
The Caribbean region has not been forgotten. Mr. Allen said, "We will be making serious money in the Caribbean. We have secured the rights to broadcast the 2008 Olympics and we have exclusive broadcasting rights to the 2006 World Cup Football. And we are currently in negotiation for the rights to show 2007 World Cup Cricket."
Despite the intense focus on television, RJR's roots are in radio and, according to Mr. Allen, "While there are over 15 radio stations in Jamaica, we have 45 per cent market share."
FLAGSHIP STATIONS
RJR has three flagship stations. The RJR 94FM station, marketed as 'Real Jamaican Radio' has the general format and emphasis on news and current affairs. Notable features on this band is the Good Morning Jamaica programme with Allan Magnus and Dorraine Samuels; Hotline with Barbara Gloudon and Keith Smith. The FAME 95FM station is geared towards the 18 to 35 age group and features party music and the FAME Road Shows. Radio 92FM focuses on music and sports programming.
The newest addition to the RJR family is the Multi Media Jamaica division. In this part of RJR, the television and radio products are made available over the Internet and the company provides multi-media related services to other companies. Mr. Allen stated, "This company is considered the baby in the group. But it is the plank of where old and new media meet. People listen to radio over the Internet at work more than they do at home." And with their future carefully mapped out, Mr. Spaulding stated, "From now on we are going to grow back our profits and give significant return to shareholders."
