Daar Communication losses outweigh earnings growth

DAAR Communications Plc, Nigeria’s only publicly quoted broadcasting company, and pioneer private broadcast medium has sustained loss after tax in its 2015 financial year audited result.

As development and the settlement of the company’s contingent liabilities continued to impaired profit and dividends for shareholders of the group, income growth in 2015 financial year though meager could not, however, cushion the impact of negative retained earnings.

Meanwhile, the company may be emerging stronger from the era of negative earnings to growth in earnings with the release of its 2015 audited financial results which reflects hope for its numerous shareholders, yet expectations of investors.

The company’s results released to the Nigerians Stock Exchange (NSE), and published by the exchange on Monday showed that irrespective of harsh operating environment, revenue grew by 2 percent in 2015, to N7, 089,393 billion from N6, 973,359, as losses declines.

Loss before taxation grew by 34.5 per cent to N1,047,936 from N428,363, while loss after taxation buoyed by 1,316 per cent to N1,515,112 against N107,014 in the preceding year.

Non-Current Assets declined to N14, 225,898, against N16, 898,032 posted in the preceding year, accounting for 1. 6 per cent drop. Current Assets declined by 1.4 per cent to N2,818,463, from N3,487,458 in 2014 financial year.

The company’s Current Liabilities dropped to N5, 546,913, from N8, 475,345 in the preceding year, representing 3.2 percent change. Issued share capital remained 4,000,000 as in the preceding year, with share premium of 13,411,541 also as in 2014.

The result showed that Total Equity and Liabilities of the company dropped to N17,044,361 from N20,385,490 in 2014, accounting for 1 5 percent, while basic and diluted Loss Per Share weakened to 1.9kobo from 1 kobo, representing 18 percent decline.

Non-Current Assets weekend to N14, 225,898 from N16, 898,032, a 16 percent. Current Assets also dropped by 14 percent to N2,818,463, against N3,487,458 in 2014, while current liabilities closed the period at N5,546,913, from N8,475,345 in the preceding year. Shareholders’ Fund recorded 3 per cent drop to N11, 497,448 from N11, 910,145.

Daily Times recall that Daar Communication was sanctioned by the NSE with a penalty amounting to N13.5 million for default in filing its December 2013, 2014 results and first quarter 2015 results.

The company featured in the x-compliance report of the exchange for default in filing audited and periodic results to the exchange.

Chairman of the Daar Communications Group, Chief Raymond Dokpesi Jnr., had earlier deplored the harsh operating climate in the country pointing out that it had a negative impact on the company’s revenue inflow as it hampered clients’ patronage level.

“I irrevocably promise you that all necessary measures have been taken to return your company to sustainable profitability which will ultimately translate to better returns on your investment in the Company,” Dokpesi further reassured the shareholders.

He also informed the shareholders that apart from the tax commitment which the company has cleared, other resolutions undertaken included the resolution of the lingering debt imbroglio between Daar Communications and Fidelity Bank Plc in respect of a loan for the hosting of the 2009 U-17 World Cup has equally been settled and has received a letter of non-indebtedness from the bank.

He stressed that Daar Communications has equally entered a settlement term with its satellite providers- Intelsat Global Services Limited and consequently obtained a waiver of over $2 million on the outstanding liability to it which provided the Daar Group with the opportunity to settle the debt at a discounted sum of $1.2 million as full and final settlement.