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Outgoing board chairman Dr Paul Chimedza

Business Reporter
LEADING printing, publishing and broadcasting group Zimpapers Limited bounced back to profitability after recording US$357 596 in after-tax profit for the interim period to June 30, 2013 on the back of a 14 percent jump in turnover.

The first half performance reflects solid growth on most financial indicators and full year prospects look good after revenue rose from US$19,6 million in the 2012 interim period to US$22,4 million in the period under review.

The Zimbabwe Stock Exchange-listed diversified media group can only do better in the second half of the year considering the growth in the profitability of its flagship newspaper division from US$1,8 million last year to US$3,1 million this year.

This also comes as the group expects to commission its new press by the end of this month which is expected to usher new revenue streams and also bring competitive advantage to the group’s products through efficiency and quality.

The diversified media group said the profitability, after a US$1,2 million loss in the 2012 half-year period, was largely attributed to effective implementation of strategies of revenue growth and cost containment that the company embarked on.

Presenting the group’s financials for the period under review, outgoing board chairman Dr Paul Chimedza said that Zimpapers has been evolving its newspaper business model in line with global trends.

The group has incorporated multiple print and digital publishing products to reach new audiences and satisfy the needs of demanding media audience whose appetite for the traditional printed newspaper has been falling as the demand for new print and digital formats increases.

“In order to remain relevant and grow the media house, the Zimpapers business model has evolved to include popular tabloids, magazines, radio and digital media based on convergence policy that channels news content across all platforms,” Dr Chimedza said.

He pointed out that the newspaper division continues to perform well despite the competition. This division is adopting new technology to fully exploit opportunities being offered by the new media in order to mitigate the migration of readers from print to digital platforms, he said.

The division recently launched a new product called BH24, a newsletter that provides premium business news targeting business executives with information to make critical business decisions. It is available as a mobile application or as a portable document format (PDF) sent via email.

The commercial printing division reduced its operating loss to US$51 654 from US$613 540 the previous year. The division continues to be negatively affected by antiquated equipment and limited capacity, huge overheads and debt overhanging which need to be liquidated.

Zimpapers added that despite the division’s challenges, it continues to hold its market share as it is managing to service its valued customers that include the beverage manufacturers, food processors, publishers and manufacturing companies.
The board is now looking into buying new machinery for the division as it has managed recapitalise both the newspaper and broadcasting division.

Dr Chimedza said the broadcasting division posted a marginal loss but its performance is improving steadily as it continues to establish its brand in the radio market.

The division has since installed new transmitters throughout the country in an effort to ensure nationwide coverage.