Jul 2006 Financial News

OCM Release Half Year Results

Jul 24, 2006

The Consolidated Financials for the half year ended June 30th 2006 of One Caribbean Media Limited (OCM) reflect the merger transaction and consolidation with the Nation Group (Barbados), which was effective on January 1st 2006.

In the un-audited financial statements for the half year ended June 30th 2006, the Group reported a diluted EPS of $0.51. This represents an impressive increase of 42 % over the comparative EPS of $0.36 recorded as at 30th June, 2005. It is important to note that the diluted EPS was inclusive of un-allocated ESOP shares in addition to shares resulting from the merger with the Nation Group.

Sales for the period amounted to $202 million which was an increase of 113 % or $107 million on the comparable half year in 2005. OCM attributed this to the outstanding performance at CCN along with the impact of the merger with the Nation Group. Gross Profit also had a large increase of 217% or $52 million, ending the period at $76 million.

Expenses increased considerably- Administrative Expenses were up 293% from $7 million to $25 million, while Marketing Expenses escalated from $0.6 million to $5 million- an increase of approximately 762% or $4.6 million. Despite the exorbitant increase in Expenses, Operating Profit still showed an outstanding increase of 168%, up $28 million from $17 million to $45 million. Profit before Taxation amounted to $45 million, which represented an increase of $22.5 million or 100% on the prior half year period in 2005.

The Effective Tax rate for the half year was 25%, compared to the Tax rate of 28% in comparative period in 2005. Group Profit Attributable to Shareholders was $34 million- an increase of 103% or $17 million on the half year ended June 30th 2005.

The Directors have approved an interim Dividend of $0.25 per share payable on August 30th 2006.

The Group expects to carry out the planned issue of 3 million shares in Barbados and Trinidad and Tobago by the final quarter of 2006.

OCM is confident that the results of the second half of the year will show continued improvement as current indicators are positive.


Gia Singh
WISE Research Team