Delma Lupepe
ZIMBABWE Newspapers (Zimpapers) , recorded a US$1,9 million net profit for the half year to June 30, 2015, as it republished its results citing a material tax error in its initial financial statements.
In August the group had previously reported a US$20 000 loss after tax. Zimpapers recorded a US$1,4 million loss in the first half of 2014.
In a statement accompanying the company’s financial results on Tuesday, chairman, Delma Lupepe said following the detection of a material tax error after publication of the group’s June 2015 financial results, “the board, in consultation with with the Zimbabwe Stock Exchange, has decided to re-publish the group’s financial results for the half year to June 30, 2015 for the benefit of stakeholders”.
The group which publishes The Herald, Chronicle, Sunday News, Manica Post and The Sunday Mail among other titles and owns radio station Star FM, said the decline in newspaper copy sales and advertising volumes in the traditional newspaper market resulted in their revenue declining by five percent to US$19,9 million for the half year to June 30 from US$21 million in the previous year.
Lupepe said the company embarked on cost containment measures that have started bearing fruit as an operating profit of US$1,8 million was recorded for the period under review compared to an operating loss of US$1 million posted last year.
“The finance costs remained high at US$700 000 due to the high interest rates prevailing in the market. In line with the July 2015 Monetary Policy pronouncement by the Reserve Bank governor, Dr John Mangudya, the company is in discussion with its bankers to reduce the cost of borrowing,” Lupepe said.
Profit before tax was US$1,1 million compared to a loss of US$1,9 million for the same period last year.
“The board and management continue to focus on streaming cost structures for the business to align with the level of generated revenue,” he said.
Due to the marginal profit situation, the company decided not to declare a dividend.
“The company remains committed to declaring a dividend to its shareholders when its fortunes improve,” Lupepe said.