Zimpapers Logo

Mr Justin Mutasa

Innocent Madonko Deputy Editor
THE Group Chief Executive Officer of the Zimbabwe Newspapers Group Justin Mutasa has left the company after 12 years at the helm of the country’s biggest diversified multi-media group, the board chairman, Dr Charles Utete, announced last night.
In a statement, Dr Utete said Mutasa had offered to go on early retirement before the expiry of his contract.

He said the Group Financial Director Adolf Majome had also parted ways with the company after 11 years of illustrious service.

Dr Utete said Majome’s contract of employment expired early this year and he opted not to renew it.

“The Zimpapers board chairman, Dr CMB Utete announces the departure on early retirement of the company’s Group Chief Executive Officer, Mr Justin Mutasa and the Group Financial Director, Mr Adolf Majome with effect from 30 September, 2014,” the statement said.

“On behalf of the Zimpapers Board, management and stakeholders, I would like to thank the two directors for their long service to Zimpapers. Mr Mutasa and Mr Majome had been with the company for 12 and 11 years respectively. The Board wishes them well in their future endeavours”.

Zimpapers is the country’s dominant multi-media group that publishes the Chronicle, Herald, Sunday Mail, Sunday News, H-Metro, B-Metro, Manica Post, Southern Times, Umthunywa, Kwayedza, Bridal Magazine and ZimTravel.

It also runs StarFM.

In its financial report released on Tuesday, the group reported a $1.4 million loss stemming from finance costs of recapitalisation loans of more than $6 million and the underperforming commercial printing and broadcasting divisions during the half year ended June 30.

The group posted a six percent decline in revenue to $21 million during the period under review compared to $22.4 million during the same period last year.

Loss before tax stood at $1.9 million due to the slump in revenue while overheads remained relatively fixed.

In a statement accompanying its financials, the group said it was poised for profitability in the wake of the massive recapitalisation programme at its branches countrywide as it moves to consolidate market leadership.

While the company’s revenue remained depressed at $21 million in the first half of the year due to the challenging economic environment, prospects for increased growth are high.

“Both management and the Board are seized with the issue of streamlining its cost structures for them to be commensurate with the revenues being generated,” Dr Utete said. “The company had to use short-term borrowings which are expensive due to absence of long-term funds on the market and the necessity to recapitalise as the company was operating on near-obsolete equipment, which was becoming economically unsustainable.”