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Business Reporter
ZIMPAPERS has successfully commissioned a refurbished CD102 commercial printing machine purchased from Italy for its printing division, Natprint, which has increased the unit’s capacity threefold. The group’s chairman, Dr Charles Utete, said the recapitalisation exercise is almost complete. “The new Orient X-Cell printing press is now fully operational, although there is still room to achieve the expected optimum production capacity, efficiency and quality,” Dr Utete said.

“The company has also finished installation of its new production and accounting system, 4CPlus. The system is robust and watertight. The new system has greatly improved the production and reporting processes by providing real-time information flow availability,” he said.

Dr Utete said the full benefits of the recapitalisation are now starting to take effect especially the expected production efficiencies and quality.
The company has identified non-core assets for disposal in order to liquidate part of its debt in an effort to reduce high interest charges and also pay some the pressing statutory obligations.

Zimpapers’ newspaper division recorded an operating profit of $1,9 million before finance costs for the half year to June compared to $3,1 million for the same period last year.
Dr Utete said the division continues to perform well despite the competition and the harsh economic environment.

The division is adopting new technology to fully exploit opportunities being offered by new media.
The commercial printing division recorded an operating loss of $434 310 in the six months to June compared to a loss of $51 654 the same period last year. The division’s performance was negatively affected by the use of antiquated machinery.

“The division continues to have a healthy order book which it could not process previously due to lack of capacity. The division’s performance is now poised for growth with the commissioning of the refurbished CD102 machinery.

“The division is now geared to service its valued customers that include beverage manufacturers, food processors, publishers and manufacturing companies due to the increase in capacity,” said Dr Utete.

The broadcasting division recorded an operating loss of $112 600 in the period under review compared to $104 244 for the comparative period last year. Digital platforms contributed 4 percent to Group’s total revenue.

The group’s revenue was down 6 percent to $21 million from $22,4 million last year while gross profit fell marginally to $16,2 million from $16,5 million during the same period last year.

The decline in gross profit was marginal due to efficient procurement of raw materials and efficiencies in the production cycles brought about by recapitalisation.
Dr Utete said Zimpapers is focusing on developing digital platforms compatible with mobile devices such as smart phones, tablets, and android devises as well as on-line products like online classified adverts, email advertising and also coming up with advertising platforms that suit the various sectors of the economy especially informal sector.

Zimpapers digital platforms have to date contributed four percent to the group’s total revenues. The company continues to grow these platforms which represent the future, according to Dr Utete.

“Although there are a number of players on the market, Zimpapers still maintains its market leadership as confirmed by different independent surveys. Most of the company’s publications have defined their key editorial propositions and are dominating their respective markets in terms of content,” said Dr Utete.

A survey carried out by Topline Research Solutions on behalf of the Zimbabwe Advertising Research Foundation, a board mandated to monitor and undertake independent market research on behalf of advertisers, the media, publishers, advertising agencies and public relations consultants in Zimbabwe, revealed that The Herald had more than 1,972,441 readers in the last three months compared to the closest rival the Daily News’ 1,051,399 in the same period.

Zamps showed that The Herald gained 2 percentage points on its daily readership to 26 percent from 24 percent recorded in the same period last year.
The Herald commands 26 percent of the market compared for the paper read in the last three months.

The Herald is also leading on the digital platforms with 6 percent of readers accessing the paper through the internet an increase from 2 percent recorded last year.
Newsday and Daily News follow The Herald at 5 percent while other dailies are at 2 and 1 percent respectively.

The survey also showed that The Herald is the preferred choice for local news commanding 24 percent of the readership, 17 percent for sports and 8 percent for business and entertainment news and 2 percent for regional news.