Mar 2017 Financial News

GML net income declines 82.6%...evolving into digital-first media

Mar 21, 2017

Guardian Media Ltd (GML) yesterday reported an 82.6 per cent decline in its net income for the year ended December 31, 2016, even as the company’s chair declared that it is “relentlessly evolving towards being a digital-first media house.”

The company’s net income for 2016 was $6.3 million, down from $36 million in 2015.

GML chair, Teresa White described 2016 as being both “challenging and exciting” as the company faced “a weak media market and this constrained our revenues,” which declined by 21.6 per cent to $164.4 million in 2016 from $209.8 million in 2015.

The slippage in revenue caused the company’s income before tax to decline by $32.6 million to $16.3 million.

“Shareholders should also note that the increase in the tax rate from 25 to 30 per cent in 2016 has had a major impact on our profit after tax. Our net deferred tax liability increased by $5.6 million as a result of applying the 5 per cent increase in taxation rate. This is a one-off non-cash deduction,” White said in the chair’s statement, in GML’s audited results published yesterday on the stock exchange website.

She said the company, led by a new executive team, is “enthusiastic about the game-changing investments” it put in motion in 2016, including the restructuring of GML into “a multi-media house, delivering integrated news and content to our audiences and complete advertising solutions to our customers.

According to White, GML expanded its digital advertising billboard network and continued the development of its Guyanese radio station. The company also completed the first phase of its print optimisation project, enhancing the quality and efficiency of print production.

White said: “We are relentlessly evolving towards being a digital-first media house. At the same time, in 2016 we were successful in reducing costs by $10.4 million compared to 2015. Over 2017, we will further optimise our costs. Our transformation programme will continue into 2017 and the turnaround will be evident before the year end.”

The GML chair said the company operates on a rock-solid balance sheet of $383.1 million in total assets and “it enjoyed an increase of $4.4 million in our cash and cash equivalent to $98.8 million. She said: “Our confidence is reflected in the final dividend by our directors of $0.50 per ordinary share, which brings the total dividend to $0.60 per share (compared to 65 cents per share in 2015) and 4 per cent for preference shareholders, which will be paid on 14th June 2017.”

Source:
Trinidad Guardian
Tuesday March 21, 2017

http://www.guardian.co.tt/business/2017-03-21/gml-net-income-declines-826