May 2011 Financial News

One Caribbean Media's profits rise. Caribbean Super Station to take off

May 06, 2011

One Caribbean Media Ltd has recorded increased profits for its first quarter ended March 31.

"I am pleased to report that for the first quarter of 2011, Group net profit before tax of TT$17.5 million (US$2.7 million) increased by 12 per cent from TT$15.5 million (US$2.4 million) compared with the prior period in 2010," OCM chairman Sir Fred Gollop said last week

The improved financial performance was achieved notwithstanding revenues of TT$103.4 million being relatively flat, "reflecting the continuing challenges of the economies in which we operate", he said in the Group's unaudited financial results.

Profit attributable to shareholders of TT$12.6 million was more than the $11.1 million in 2010, a 13 per cent increase, Sir Fred said.

"We expect that the group's performance will continue to improve as sales and marketing strategies and other initiatives take effect," he added.

Shareholders of OCM asked questions about the Group's goodwill impairment of TT$244 million last year, during OCM's annual general meeting at Express House, Port of Spain.

Sir Fred told shareholders that it was a prudent decision and that investing in the company was still a wise choice.

He said the emergence of digital media and the decline in profitability of one of its subsidiaries, the Nation Group in Barbados, led to the write-off.

"The directors acknowledge that the trends in media technology and the use of Internet-based media are already having an impact on paper-based applications," Sir Fred said.

"The directors also took account of the present decline in profitability of the Nation Group owing to Barbados's current economic environment ... this factor contributed to the board's decision to adopt a conservative approach and write off the goodwill arising from the merger."

Sir Fred added that he was confident there will be growth in the current financial year as the company looks for new avenues to make money.

"We have taken serious steps to run more efficient operations and we have already seen signs of transformation we are also embarking on a number of new initiatives. One of them for example is the Caribbean Super Station," he said.

"There are already signs that we will have a better year. We have an excellent track record and shares in OCM are an excellent investment. We expect improved performance in the months ahead."

Shareholders re-elected Joseph Esau, Michael Carballo and Grenville Phillips as directors of the board.

Directors approved a final dividend of 41 cents per share resulting in a total of 61 cents for 2010, the same as 2009.

OCM was created in January 2006 from the merger of the Caribbean Communications

Network (CCN) Group of Trinidad and Tobago and the Nation Corporation Group of

Barbados. The Trinidad Express Newspapers, CCN TV6, HOTT 93 FM in Trinidad are part of the OCM group along with other media assets in Grenada.


Source:
Abby Brathwaite
Jamaica Observer
Friday May 6, 2011

http://www.jamaicaobserver.com/business/One-Caribbean-Media-s-profits-rise_8756336#ixzz1LaZhn0vr