Dipo Olowookere
By Dipo Olowookere
Shareholders of Daar Communications Plc have been urged not to panic following loss recorded in the 2016 financial year.
At the combined 2015 and 2016 Annual General Meeting (AGM) of the firm held over the weekend in Abuja, Chairman of Daar Communications, Mr Raymond Dokpesi Jnr, said there have been conscious business restructuring, operations digitalisation and expansion initiative project which were at the final stage of implementation.
He assured shareholders that they was a bright hope of returning the company to profitability in the years ahead.
Daar Communications operates the popular African Independent Television (AIT), RayPower FM and Faaji FM.
In the 2016 financial year, Mr Dokpesi Jnr told the shareholders that the company posted a loss of N2.139 billion, while its operating loss grew from N1.515 billion in 2015 to N 2.139 billion..
He attributed this to recession in Nigeria.
“The adverse business environment together with the biting economic recession caused the 2016 turnover of the company to plummet to an all-time low if N3.733 billion representing 47 percent decline over 2015 earnings.
“The loss after taxation in 2016 was N2.139 billion while in 2015 loss after taxation was N1.515 billion.
“As encapsulated earlier, the losses were as a result of the astronomical increase in cost of operations occasioned by the economic recession and the severe devaluation of the Naira which could not be matched with corresponding growth in earnings as the advert budget in the industry declined in the ensuing period,” the Chairman said.
However, he enthused that the company was able to save a lot of funds in litigation fees as some cases against the firm were settled out of court or struck out for want of evidence.
He said some of these cases came from the last 2015 general election in Nigeria, but emphasised that all pending litigation matters have been successfully resolved.
