Zimpapers’ HY 2020 revenue down 6.8% due to depressed demand

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  • Revenue stood at ZWL$256.6 million
  • Newspaper division’s revenue declined by 17.9%
  • Company expects to receive national television broadcasting license

Harare- ZSE-listed Zimpapers Limited posted a decline in revenue in inflation-adjusted terms in the half year ended 30 June 2020 owing to COVID-19 related challenges.

Revenue for the period declined by 6.8% to ZWL$256.6 million from ZWL$275.4 million recorded in the same period last year due to low demand arising from the COVID-19 lockdowns.

The Company’s gross profit margin declined to 58.9% from 66.9% (inflation adjusted) when compared to same period last year owing to high cost of sales driven by hyperinflation at a time when volumes were constrained by the pandemic during the period under review.

Only the newspaper division recorded a decline in revenue in the period where it eased by 17.9 to ZWL$ 148.2 million due to a challenging operating environment.

Commercial printing division however registered revenue growth as a result of an increase in demand for the division’s products following its designation as an essential service provider during the lockdown period.

Revenue for the period grew by 15.6% to ZWL$68.1 million in inflation adjusted terms.

The radio broadcasting division also registered a 12.3% increase in revenue to ZWL$40.3 million on the backdrop of market consolidation during the lockdown period as advertisers wanted to reach out to audiences who were staying put in their homes.

On the outlook, the Company expects to be licensed for national television broadcasting following its application for a license and has been shortlisted for public enquiries by the Broadcasting Authority of Zimbabwe.

In addition, the Company’s ongoing digitalization strategy is expected to gain momentum in line with the growing demand for digital products in the country and the world over.

Equity Axis News

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