Zimbabwe Newspapers Ltd Reports Revenue Growth Amidst Decline in Gross Profit Margin to 57% and Operating Costs Rise to 58% of Revenue

Published On: June 5, 2024Company: Zimbabwe Newspapers (1980) Limited (ZIMP.zw)
What are some key financial highlights for Zimbabwe Newspapers (1980) Ltd from the 2023 report?
Zimbabwe Newspapers (1980) Ltd saw an 87% increase in group revenue to ZWL$167.1bn, with its Newspaper, Broadcasting, and Commercial Printing divisions experiencing revenue growth of 76%, 108%, and 98%, respectively. However, despite this growth, the company's gross profit margin declined to 57% from 63%, as the cost of sales material and labour increased, as well as operating costs, which grew to 58% of revenue from 54%.

Summary

  • Zimbabwe Newspapers (1980) Ltd reported an 87% increase in group revenue to ZWL$167.1bn in 2023.
  • Newspaper, Broadcasting, and Commercial Printing divisions saw revenue growth of 76%, 108%, and 98%, respectively.
  • Zimbabwe’s economic landscape in 2023 witnessed both challenges and successes, including maintaining a relatively high GDP and monetary stability in the second half of the year despite initial inflationary and exchange rate fluctuations.
  • In the media sector, there are gains in print circulation and significant digital audiences growth, with Zimpapers stepping up its digital transformation efforts. The radio sector is experiencing high competition, driving innovation and diversity in programming.
  • Engagement with policymakers and stakeholders on the Media Policy and the Media Practitioners Bill continues to ensure operations align with regulatory requirements and industry standards.
  • Zimpapers is working on exploiting digital ecosystems between News, Radio, TV, gaming, social media, and user-generated content with the aim of expanding its reach and enhancing digital monetization.
  • Despite growth in revenue, the company’s gross profit margin declined to 57% from 63% due to cost of sales material and labor increases and operating costs increase to 58% of revenue from 54%.
  • The company is obliged to adhere to the International Accounting Standard (IAS) 29, resulting in hyperinflated financial statements.
  • No dividends are recommended due to operational challenges and the need for investment in capital-intensive projects.
  • The company projects growth in the commercial printing and packaging industry and in the media industry, driven by digitization, mobile adoption, and changing consumer behaviour.

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About Zimbabwe Newspapers (1980) Limited (ZIMP.zw)

Zimbabwe Newspapers (1980) Limited is the oldest publishing house and commercial printer in Zimbabwe with interests in print media, broadcasting and digital publishing. Known as ZimPapers, the company is the proprietor of Zimbabwe’s leading national and regional newspapers which includes nine newspaper titles, two magazines and one regional newspaper which is a joint venture with a Namibian publisher. Well-known newspapers in its product offering include The Herald, Chronicle, H-Metro and The Manica Post, aswell as two Sunday newspapers; The Sunday Mail and The Sunday News. Zimbabwe Newspapers has ventured into magazine and digital publishing with BH24 which is a prime daily business bulletin targeted at top business executives; and ZimTravel covers tourism in Zimbabwe and the rest of Africa. A corporate printing division produces books, labels, security documents, diaries and calendars, and an origination service. Zimbabwe Newspapers (1980) Limited is listed on the Zimbabwe Stock Exchange

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