- 3% volume decline was recorded in Radio Broadcasting Division
- 54% volume increase recorded in Commercial Printing Division
- The group recorded a decline in an overall portfolio
ZSE Listed private company, Zimpapers has published its trading update with reduced volumes traded across the group, propelled by declining aggregate demand in the economy. The group recorded a 7% decline in circulation for the newspapers year-to-date as compared to the same period last year. The outturn in volume decline is most likely to have been driven up by increased market players and the customer convenience and choice base.
The mid-quarter advertising volume decline of 28% from Q2 2022 was recovered as the group recorded an 8% volume growth last year. The 28% volume decline was mainly caused by the Government’s economic interventions of increasing the cost of borrowing and freezing payments to contractors to tame inflation and runaway exchange.
The Radio Broadcasting Division recorded a 3% volume growth when compared to the same period last year on a year-to-date basis. This is more likely to have been propelled by revalued and tightened radio licenses by the government. However, resultantly the Q3 volume for the Division declined by 9% as compared to the second quarter.
Unlike the newspaper and radio broadcasting Divisions, the Commercial Printing Division (CPD) recorded a 54% volume increase when compared to Q2. The increase recorded was a result of increased material supplies in the third quarter. The second quarter reduced material supplies as a result of limited Foreign Exchange availability
The projection is that the group’s operational risk will accelerate with the experienced liquidity crunch in the third quarter. The company’s liquidity crunch will ultimately affect its performance and a decline realized is likely to get worse as the financial year emerges