Daar Communications Remains In Red, As Half-Year Net Loss Hits N1.286bn

Almost one month after the end of the regulatory filing period for its half-year unaudited financials, the board of electronic media giant- Daar Communications Plc, on Friday presented its score-card, with numbers still in murky waters, with revenue sliding by 18.8%.
The company which is yet to offer shareholders cash dividend since its eight billion ordinary shares were listed on the bourse on Friday, September 26, 2008, reported a N400m drop in half-year revenue from N2.127bn to N1.727bn; which remained lower than its cost of sales of N2.198bn, as against the prior half-year’s N2.334bn; resulting in gross loss of N471.134m, which was significantly higher than the previous N207.036m. Other income however jumped to N2.17m from N761,000 in the previous half year.
Distribution cost rose to N34.281m from N24.926m; administrative expense rose from N697.077m to N719.986m; just as finance costs dropped to N39.648m from N56.159m.
These swelled loss before tax to N1.262bn from N984.437m; just as tax expense dropped to N23.905m from N41.368m; resulting in profit after tax of N1.286bn, representing Loss Per Share of 16 kob; from N1.025bn or 13 kobo LPS, further pointing to a need by the board to rethink the company’s management and funding structure once and for all for a possible new direction.
A further breakdown of the figure showed that the company’s television arm- African Independent Television earned N1.466bn, down from N1.853bn in the preceding half year; followed by Raypower Radio- N208.426m, slightly more than the previous N206.969m; while the pay TV is yet to earn revenue.
The period ended with retained losses of N7.416bn, up from N6.129bn, after opened the year at N6.129bn, compared with N3.99bn previously.
Daar Communications issued a 1:2 bonus for the year ended December 31, 2012, for which the annual general meeting held on November 2014.