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Financial News

Jun 2015 Financial News

Investments pay off

Jun 22, 2015

Despite having to deal with contraction in some of the economies it operates in and a 0.7 per cent reduction in revenue, One Caribbean Media Ltd's (OCM) profit margin remained positive with a 0.42 per cent increase from 2013.

OCM's profit before tax of $104 million was announced yesterday at its 47th annual general meeting (AGM) at Express House in Port of Spain.

The report from OCM chairman Sir Fred Gollop QC stated: “The group's revenues in 2014 decreased marginally from $552 million (US$85.5 million) in 2013 to $548 million (US$85 million). However, an after tax profit of $84.7 million (US$13.1m) reflected a marginal increase when compared to the $84.4 million (US$13.08m) recorded in 2013.”

Sir Fred told shareholders that one of the main reasons the group was able to achieve positive financial results was as a result of its ability to strategically pursue selective investment opportunities in diverse business operations.

OCM is the parent company of Caribbean Communications Network (CCN), which operates TV6 and publishes the Express newspaper.

Positive developments

In addressing shareholders, group chief executive officer Dawn Thomas said she was very proud of management and the positive developments they were able to create despite the ongoing depressed conditions of the market.

“We continue to lead the market in audience share with Express enjoying a one per cent increase with its daily publication, which stands at 49 per cent while its Sunday publication gained two per cent to now command 51 per cent of the market,” she said.

Thomas said Barbados' Nation newspaper has 88 per cent of the daily market and 83 per cent of the Sunday market.

She added that the group's radio division is also performing well with Trinidad's i95.5FM, Red 96.7FM and HOTT 93.5FM holding the top morning and evening drive-time programmes while HOTT95.3 and VOB92.9, two members of the four-station Starcom Radio Network of Barbados, were able to cop the number one and two positions in the market with Starcom enjoying 58 per cent market share.

“CCN TV6 is the number one television station in Trinidad and Tobago with TV6 news being the most watched programme and Morning Edition, the number one morning programme,” Thomas said, adding that the station also has the most viewers during primetime (8-10pm) while Grenada's GBN enjoys 77 per cent viewership during primetime.

Initiatives launched

In answering the question posed by former Port of Spain mayor Louis Lee Sing regarding projections for future growth taking into consideration the contraction in the Caribbean, Thomas said that the management team was cognizant of that which is why the following initiatives were undertaken:

1. Launch of two new radio stations: Taj in Trinidad and wVent in St Lucia

2. Two investments in digital media/technology companies

3.Diversification Initiatives leading to the acquisition of two investment properties in Port of Spain .

4. A 51 per cent majority shareholding investment in a renewable energy company in Barbados.

OCM's chief financial officer and company secretary John Lum Young said the group's balance sheet reflected a position of stability as evident by the increase in assets from $764 million in 2013 to $822 million.

The balance sheet also reflected an increase in equity from $622 million in 2013 to $668 million while total liabilities increased by just $13 million from $141m in 2013 to $154m. In quelling a concern raised by one shareholder, Lum Young said, “We have no plans to move operations out of Port of Spain.”

 

Source:
By Donstan Bonn
Trinidad Express

Friday June 19, 2015

http://www.trinidadexpress.com/20150618/business/investments-pay-off