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Nelson Gahadza Senior Business Reporter

THE country’s largest media group, Zimbabwe Newspapers (1980) Limited, posted an 87 percent growth in full-year revenue to $167,1 billion from $89,6 billion recorded in the prior year, largely driven by growth across its divisions.

The newspaper division’s revenue for the full year to December 31 2023 grew 76 percent to $98 billion, the broadcasting division,s topline jumped 108 percent to $37 billion, while the commercial printing division’s sales bulked 98 percent to $32,1 billion.

Group chairperson, Mrs Doreen Sibanda in a statement of the financials for the period under review, said that the revenue growth was offset by increases in the cost of sales material and labour.

“Further cost increases were incurred in operations, as operating costs were 58 percent of revenue compared to 54 percent for the same period last year.

“Consequently, the company’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) margin declined to 7 percent from 17 percent for the same period last year.”

In an environment characterised by tight liquidity, where most of the company’s clients paid their accounts late, the company managed to reduce its cost of borrowing by 39 percent, as some of the facilities were paid off.

Mrs Sibanda said that due to the need to invest further in key capital-intensive projects for the company, the board recommended that no dividends be paid for the concluded year.

In terms of divisional performance, the newspaper division increased its top line mainly because of the need to protect margins in a hyperinflationary environment, as both advertising and circulation sales volumes remained relatively flat compared to the same period last year.

Mrs Sibanda said due to high costs incurred during the year arising from unprecedented inflationary pressures, operating profit before interest, tax, and monetary adjustments declined to 8 percent, compared to 16 percent for the same period last year.

The commercial printing division’s revenue growth was driven by some volume growth. However, despite the volume growth, the division recorded an operating loss of $97,0 million.

“The division continued to face challenges in obtaining adequate foreign currency and critical raw materials. This had a negative impact on the ability of the division to stretch its growth ambitions.” 

The topline for the broadcasting division grew by 108 percent last year, despite volumes remaining flat.

Mrs Sibanda said the revenue growth was driven by both radio and television units, which registered growths of 116 percent and 73 percent, respectively.

“The broadcasting division’s overall profitability was weighed down by the newly launched Zimpapers Television Network (ZTN) channel that was launched on DStv channel 294 in May 2022. Although the channel is not yet making a profit, it is gaining acceptance in the market, and its prospects for the future are great,. 

Mrs Sibanda said during the year under review, the media environment was dynamic, with marginal gains in print circulation and significant growth in digital audiences, particularly driven by Generation “Z” audiences who prefer visual and interactive content formats such as videos.

She said that in response to this trend, Zimpapers was stepping up its digital transformation efforts to cater to the changing preferences of its audience.

“Our digital environment has been transforming in sync with the observed trends, where there is now an apparent ecosystem between news, radio, TV, gaming, social media, and user-generated content into a tapestry of entertainment and news communities.

“We have therefore created a digital environment that allows us to reach audiences in new places, allowing us to distribute news and entertainment across the world and help them remain informed on relevant issues that affect them from wherever they will be and at whatever time.”

The group’s live-streaming and social media have helped to reshape its media and entertainment business model.

“Over the years, our focus has been on building the digital audiences that can give our advertisers the visibility mileage they require. The new focus is now to create the best customer experience through quality content and more interactions that allow profitable digital monetization,” said Mrs Sibanda.

The radio sector was blossoming after significant gains during the reporting period, although the segment was also becoming highly competitive with the emergence of community radio stations in most provinces.

She noted that this increased competition is driving innovation and diversity in programming across the radio landscape.

“Our stations, such as Star FM and Diamond FM, are dominant in urban markets and are gaining ground in other markets as we improve our transmission footprint.

“On the other hand, the television market is picking up in Zimbabwe after decades of being dominated by a single player.

“Despite delays in the development of the digital terrestrial platform (DTT) that will allow Zimbabweans to access local television stations for free, Zimpapers has pursued other platforms and is currently on the MultiChoice bouquet while also developing a structured over-the-top (OTT) platform,” said Mrs Sibanda.

On the legislative front, she said there are ongoing conversations around the media policy and the Media Practitioners Bill, signalling a continued opening up of the media industry in Zimbabwe. She said Zimpapers was actively engaging with policymakers and stakeholders to ensure that its operations align with regulatory requirements and industry standards.

“Overall, Zimpapers is navigating a dynamic media environment characterised by shifting audience preferences and regulatory changes. The company remains focused on delivering high-quality content across its various platforms while adapting to emerging trends and technologies in the media landscape.” 

Looking ahead, Mrs Sibanda said Zimbabwe’s media industry was poised for growth, driven by digitalisation, mobile adoption, and changing consumer behaviour.

She said the convergence of technology and content will continue to shape the landscape in 2024 and beyond.

“The company is therefore putting in place appropriate strategies to ensure its ability to tap into these growth opportunities.” 

Mrs Sibanda said the group projected the same growth for the commercial printing and packaging industries with the adoption of new technology for UV vanishing as well as the printing of plastic labels.