Zimpapers experience decline in copy sales

ZIMBABWE Newspapers is experiencing a decline in copy sales and advertising which has negatively impacted revenue.

The media group saw revenue declining by five percent to $19,9 million for the half year to June 30 from $21 million in the previous year.

Zimpapers  chairman, Delma Lupepe  on Tuesday blamed the decline on the economy which has hit hard on its readers.

"The difficult economic climate has negatively affected consumer's disposable income. This together with the growth of digital platforms and free online content has negatively impacted on print circulations resulting in other media companies either shutting down or stopping publishing their non-performing newspaper titles".

"The finance costs remained high at US$700 000 due to the high interest rates prevailing in the market. In line with the July 2015 Monetary Policy pronouncement by the Reserve Bank governor, Dr John Mangudya, the company is in discussion with its bankers to reduce the cost of borrowing," Lupepe said.

Profit before tax was $1,1 million compared to a loss of US$1,9 million for the same period last year.

"The board and management continue to focus on streaming cost structures for the business to align with the level of generated revenue," he said.

Due to the marginal profit situation, the company decided not to declare a dividend.

"The company remains committed to declaring a dividend to its shareholders when its fortunes improve," Lupepe said.

 Lupepe added that on the broadcasting side, the Diamond FM station which was granted a licence in  Mutare is expected to be commissioned during the second half of 2015.