HARARE, September 22 (The Source) – Zimbabwe’s largest media group, Zimpapers on Thursday reported a 70 percent drop in net profit, from $1,9 million to $571,000, for the half year to June 2016 after incurring a high interest bill.
The group incurred interest charges of $500,000.
“The company incurred an interest charge of $0,5 million arising from some accumulated legacy statutory obligations. The management is working tirelessly to address the issue,”said board chairman Delma Lupepe in a statement.
Revenue was five percent down to $19 million due to economic slowdown and declining disposable incomes.
Newspaper division posted an operating profit before interest and exchange losses of $1,4 million, although its revenue was nine percent down at $15 million.
The commercial printing and broadcasting divisions also performed positively recording an increase in revenues by 19 percent to $1,8 million and 13 percent to $1,9 million in that order.
Operating expenses were 10 percent lower at $11,2 million.
Zimpapers 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.
Lupepe said that the improvement of net cash generated from operating activities to $3,8 million has helped the group to invest $0,7 million and to pay loans.
Total assets stood at $39,6 million and net liability at $16,9 million.