Zimpapers restates H1 financials after tax error, reports $1,9mln profit

Zimpapers restates H1 financials after tax error, reports $1,9mln profit

HARARE, October 27 (The Source) – Zimbabwe Newspapers, the country’s largest media group, reported a $1,9 million net profit for the half year to June 30 on Tuesday, as it republished its results citing a material tax error in its initial filing made in August.

The group, which publishes The Herald, Chronicle and Sunday Mail among other titles and owns radio station Star FM, had previously reported a $20,000 loss after tax. Zimpapers recorded a $1,4 million loss in the first half of 2014.

“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 republish the group’s financial results for the half year to 30 June 2015 for the benefit of stakeholders,” Zimpapers said in a statement accompanying the accounts.

The new set of accounts still show a 5 percent decline in revenue from HY14, to $19,9 million, due to what the group says is softer newspaper and ad sales.

Despite what the group termed a “precipitous” drop in circulation and readership, Zimpapers’ flagship newspaper division reported a $1,4 million operating profit before finance costs, compared to a loss of $0.025 million previously.

The broadcast division, launched in 2012 with the establishment of StarFM, which will soon be joined by a Mutare-based metro station Diamond FM, reported a $190,000 operating profit, compared to a $290,000 loss in the same period of 2014.