Despite growing competition in the media sector and foreign currency challenges across the economy, the group maintained its solid footing driven by organic growth from all its operational divisions. Gross profit at $13 million increased by nine percent in line with revenue growth, board chairman, Mr Delma Lupepe, said in a statement accompanying unaudited financial statements for the period released yesterday.
The commercial printing division was the lead driver with 44 percent revenue growth to $3,6 million backed by an increase in company products following commissioning of the second printing press late last year.
Although the division's profit before tax increased by 16 percent to $0,42 million compared to $0,36 million in 2017, profit margin suffered a five percent drop as the cost of materials significantly went up due to economic challenges.
Mr Lupepe said the newspaper division recorded a five percent growth in revenue to $14,2 million from $13,5 million in the comparable period. Owing to revenue growth and improved cost management, he said the division's profitability grew by 40 percent to $1,79 million.
The radio broadcasting division also inched up by nine percent to $2,5 million revenue on the back of increased advertising volumes. The board, however, resolved not to declare a dividend for the period in view of the need to preserve cash and service legacy statutory obligations and fund its growth initiatives.
Mr Lupepe said the company was eyeing a pie in the digital arena and was scaling up its presence in this sphere. The group recently successfully launched its new television project, trading as ZTN, after it was awarded a content distribution licence in June this year by the Broadcasting Authority of Zimbabwe, joining other players such as Dstv and Econet's Kwese.
"The company is on track with its digital/mobile first strategy and continues to invest in new technologies as well as the recruitment of personnel with the required skills," said Mr Lupepe.
"The company's digital first strategy will reinforce the business leadership in the media industry and therefore increase its reach and influence. "We take pride in the fact that our combined digital platforms have the largest organic digital audiences in Zimbabwe."
The Zimpapers group has dominant market footprint across the country. It runs numerous publications that include The Chronicle, The Herald, Sunday Mail, Manica Post, Sunday News, Kwayedza, Umthunywa, H-Metro, B-Metro, Zimtravel, Southern Times, Bridal Magazine, Suburban and Business Weekly.
These have active online presence. It also operates digital platforms such as MobileNews, SportsZone, BH24, Zimpapers Newshub and radio stations - Star FM, Diamond FM, Nyaminyami and Capitalk.
