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Mr Pikirayi Deketeke

ZSE-listed media conglomerate Zimpapers (1980) Ltd has defied a challenging operating environment to post a five percent jump in operating profit for the first five months of 2016.

Group chief executive Mr Pikirayi Deketeke told shareholders during their 89th annual general meeting yesterday afternoon that the company will focus on growing its bottom-line going forward.

“Operating profit after interest for the first five months of the year is five percent above the prior year. Even though the environment is very difficult we have done slightly better than we did last year,” he said.

“In terms of revenue we are below prior year by about seven percent because it is difficult to spend more dollars, but we are protecting our bottom-line and trying to grow it as much as possible so we expect that by year-end we will have a relatively healthy profit.”

During the period under review segment revenue contribution was dominated by the newspaper division. It contributed around 80 percent of revenue during the period, while the commercial printing and broadcasting both contributed 10 percent each.

Mr Deketeke said although the newspaper division remained core, the broadcasting division was beginning to make some headway.
Zimpapers’ broadcasting division includes StarFM and the recently launched Diamond FM in Mutare.

“So in terms of investment we still believe that the newspaper is our core business, but broadcasting is beginning to creep in to make sure that we diversify our portfolio of products that we are offering the market and we are still holding on to our commercial printing business,” he said.

“In terms of profits Harare used to contribute the bulk of our profits and now it is sitting at 50 percent, and StarFM is coming in second at 25 percent replacing Bulawayo, which used to be the second biggest contributor to our bottom-line, and then NatPrint coming in third. NatPrint used to be in the negative, now it’s almost playing at 1 percent.  So in terms of our portfolio, I think we are in a relatively good place.”

Mr Deketeke said in a bid to enhance value for both shareholders and consumers, the company was constantly innovating.

“We are putting resources towards innovation because we feel very strongly that an organisation that does not embrace change and continue to look at its products and market itself for the future will not achieve much.”

Zimpapers’ new products so far this year include DiamondFM, as well as websites for H-Metro and SportsZone. This is in addition to its already existing and extensive array of print, broadcast and digital products. The group has utilised capex to the tune of $547,000 this year to date in the purchase of equipment for its commercial printing division, building renovations and setting up of the DiamondFM studios.

A full-year capex of $2,6 million has been set aside, which will see — among other things — the setting up of the group’s television station to complete its re-modelling as a fully integrated media house. — BH24