Listed media conglomerate Zimpapers (1980) Limted recorded improved volumes in the third quarter to September 30, 2020, which also had a positive impact on its numbers for the period.
The diversified media company’ s revenue for the third quarter jumped by 123 percent to $366, 7 million from $164, 7 million in the second quarter.
Said Zimpapers chief executive officer Pikirayi Deketeke:
“Despite the adverse effects of the Covid-19 pandemic and the general economic volatility, the group’s financial performance recovered in the third quarter of the year compared to the second quarter. The recovery was premised on volume and price recovery during the third quarter.
“Volumes for the Commercial Printing Division grew by 26 percent and 10 percent when compared to the second quarter and same period last year respectively as the division capitalised on being designated a critical service provider during the lockdown period.
“Positive volume growth of 7 percent and 11 percent was also recorded by the Radio Broadcasting Division and the newly established online
television station, ZTN, respectively.
“Although the group’s Newspaper Division suffered the most from the effects of the Covid-19 pandemic, there was a 15 percent advertising volume recovery whilst circulation volume remained depressed, being 33 percent adverse to the same period last year.”
Resultantly, net profit before
interest and tax and monetary adjustment rising to $96, 5 million compared to $7, 6 million in the second quarter.
For the nine months period to September 2020, Zimpapers recorded Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of $192, 5 million (historical $117, 7 million) compared to $193, 1 (historical $13, 6 million) for the same period last year.
However, due to a monetary loss of $96 million recorded during the period under review, the group had an operating loss before tax of $14, 9 million (historical, profit of $82 million) compared to a profit of $186, 6 million (historical $13, 8 million) for the same period last year.
Meanwhile, Zimpapers has declared an interim dividend of 2 cents per share for the third quarter.
The interim dividend will be payable on or about December 18, 2020.