Zimpapers in $2,6mln capex

Zimpapers in $2,6mln capex

HARARE, June 23 (The Source) – Zimbabwe’s largest media group, Zimpapers, on Thursday said it has plans to invest $2,6 million in capital expenditure this year, despite revenues slowing in the first five months of the year.

“We have put money in print to purchase new equipment and renovated our building in Mutare for Diamond FM. We have spent $547,000 and our 2016 full year capex envelope sit around $2.6 million to look at our various processes including television and what we need to do,” said chief executive Pikirai Deketeke at the group’s annual general meeting on Thursday.

The group posted a profit before interest of five percent for the five months to May driven by the newspaper segment.

Revenues fell seven percent, with the newspaper segment contributing 80 percent to revenue, while the commercial printing and broadcasting contributed 10 percent each.

The group publishes The Herald, The Chronicle, Sunday News and Sunday Mail among other titles and also owns radio stations Star FM and Diamond FM and various digital platforms.

Deketeke said the group would invest in digital media to position itself in the market.

“We believe in digital media and we are investing in that space because that’s the business of the future,” he said.

The group did not declare a dividend due to a recapitalisation process.