Daar Communications records N3.4b loss
Nigeria’s only publicly quoted broadcasting company and pioneer private broadcast medium – Daar Communications Plc, has recorded a loss of N 3.4 billion, the result of the company’s 2013 and 2014 operating years has shown.
The development and the settlement of the company’s contigent liabilities has impaired profit and dividends for shareholders of the group.
Addressing shareholders at the joint yearly general meetings for the two years on Monday in Abuja, the Chairman of the Daar Communications Group, Chief Raymond Dokpesi Jnr. said though the company recorded growth of 33 per cent and 23 per cent respectively for the two years in question, tax commitment and other contentious liabilities eroded the gains of the growth.
He deplored the harsh operating climate in the country in the period under review, pointing out that it had negative impact on the company’s revenue inflow as it hampered clients’ patronage level.
Dokpesi said: “In the light of the above operating challenges, your company recorded modest improvement in earnings in 2013 and 2014 of N5.6 billion and N6.9 billion respectively. These achievements translated to earnings growth of 33 per cent and 23 per cent respectively over earnings recorded in their preceding years.
“ Regrettably, the company recorded loss after taxation of N3.4 billion in 2013. However, there was improvement in operation in 2014 as the loss after taxation was drastically reduced to N0.107 billion . These losses arose from increasing cost of operation which was not matched with corresponding growth in earnings due to dwindling advertising budgets.
“I want to assure you that the new board of your company, under my chairmanship, has taken a holistic review of operations of the company with a view to ensuring total restructuring of the company for efficiency and economy in its operations. It is also expected that the restructure company will be able to create greater dominance in the advertising revenue in the industry and consequently better financial performance in the coming years.
“I irrevocably promise you that all necessary measures have been taken to return your company to sustainable profitability which will ultimately translate to better returns on your investment in the Company,” Dokpesi further reassured the shareholders.
He also informed the shareholders that apart from the tax commitment which the company has cleared, other resolutions undertaken included the resolution of the lingering debt imbroglio between Daar Communications and Fidelity Bank Plc in respect of a loan for the hosting of the 2009 U-17 World Cup has equally been settled and has received a letter of non- indebtedness from the bank.
He stressed that Daar Communications has equally entered a settlement term with its satellite providers- Intelsat Global Services Limited and consequently obtained a waiver of over $2 million on the outstanding liability to it which provided the Daar Group with the opportunity to settle the debt at a discounted sum of $1.2 million as full and final settlement.
“He also told the shareholders that the board has reviewed all major cases pending against the company, including political cases and has decided to initiate out-of-court settlement for all of them.