eBusiness Weekly
Business Writer
The country’s largest and diversified media group, Zimbabwe Newspapers (1980) Limited, says the adoption of a digitalisation strategy has enhanced revenue growth despite the adverse impact of Covid-19, which has constrained business volumes across the spectrum.
In a trading update for the first quarter ended March 2021, chief executive officer, Mr Pikirayi Deketeke, said the group’s business units were on a recovery trajectory and hoped the momentum will be consolidated moving into the second quarter.
“It is encouraging to note that DAP (digital and printing) is on a recovery trajectory following a 19 percent jump in advertising volumes recorded in March 2021 compared to January 2021,” he said.
“The newly licensed television station, ZTN, recorded a five percent volume growth when compared to the same period last year.
“The group’s digitalisation strategy continues to bear fruit as digital revenue is now 8.0 percent of the group’s total revenue driven by ZTN and the recently launched e-papers.”
According to the update report, the group recorded a 50 percent revenue increase to $427 million in hyper-inflation terms for the period under review compared to $283.9 million in the same period last year.
Of the 50 percent growth, Deketeke said 80 percent was recorded from the digital and publishing division while 17 percent and five percent were recorded from radio broadcasting and ZTN respectively.
“Although ZTN recorded a five percent increase to group revenue growth, this was 181 percent increase when compared to the same period last year,” he said.
The commercial printing division was the only unit to suffer a decline as it was affected by suppressed selling prices on its products during tight lockdown environment in the first two months of the year.
In line with improved revenue growth, the group recorded operating profit before monetary adjustments of $51.3 million when compared to a loss of $2.9 million for the same period last year. Net profit before tax also increased to $50.2 percent when compared to $26 million for last year.
On outlook, Deketeke said the group’s performance for the second quarter was expected to be better based on the improved operating environment. He, however, warned the possibility of a third wave Covid-19 scare could frustrate positive prospects.
“The board and management will continue to look at survival and growth opportunities to ensure the future existence of the group,” he said.
