Zimpapers 1980 Limited, newspaper division has recorded a three percent decline in revenue for the year ended 31 December 2017, despite the fact that $3.8 million profit was 44.9% better compared to the same period last year.
According to the group chairperson, Delma Lupepe, the decline was caused by prevailing liquidity challenges that affected circulation sales volumes.
“The Newspaper Division suffered a 3.0% decline in revenue compared to same period last year arising from the prevailing liquidity challenges that affected circulation sales volumes.
“The Company will continue to drive financial performance through both volume growth, innovation and cost containment initiatives.
“In line with the recorded revenue increase arising from the improved capacity utilisation from the Commercial Printing Division and cost containment initiatives, the Company’s gross profit increased by 5.8% to $26.1 million from $24.7 million attained last year,” said Lupepe.
He added that the Commercial Printing Division recorded a 36.3% revenue growth to $5.6 million as a result of an increase in demand for the Company’s products driven mainly by enforcement of SI 64.
Zimpapers Broadcasting Division’s revenue performance improved by 22.0% to $5.2 million on the back of increased advertising volumes while operating profit grew by 27.9%.
According to Lupepe,the company’s trade debtors were reduced by 12. 0% while total liabilities were reduced by 11.6%.
“The company’s trade debtors were reduced by 12. 0% to $9.1 million compared to $10.3 million for 2016. Consequently, total liabilities were reduced by 11.6% to $28.1 million compared to $31.8 million recorded for the prior year.
“Investment in capital expenditure was increased to $1.9 million compared to $1.2 million for the same period last year as the board focused on equipping the business to deliver better efficiencies,” said Lupepe.
