Daar Communications posts N2.14 b loss
By Emma Ujah, Abuja Bureau Chief
Daar Communications, owners of AIT and Ray Power FM, posted a N2.139 billion loss for the 2016 financial year.
The Chairman of the company, Chief Raymond Dokpesi Jnr., disclosed this at the combined 2015 and 2016 Annual General Meetings in Abuja, at the weekend.
According to him, the company’s loss rose from N1.515 billion in 2015 to a new height of N 2.139 billion in 2016.
The Chairman blamed the negative performance on the economic recession in the country, adding that the turnover fell to N3.733 billion, in 2016.
His words, “The adverse business environment together with the biting economic recession caused the 2016 turnover of the Company to plummet to an all time low if N 3.733 billion representing 47 per cent decline over 2015 earnings.”
“ The loss after taxation in 2016 was N2.139 while in 2015 loss after taxation was N1.515 billion. As encapsulated earlier, the losses were as a result of the astronomical increase in cost of operations occasioned by the economic recession and the severe devaluation of the Naira which could not be matched with corresponding growth in earnings as the advert budget in the industry declined in the ensuing period.”
Chief Dokpesi told shareholders at the meeting that the company was being owed huge sums for services rendered to various clients but assured that the management would pursue the payment in order to improve on its revenue.
He said that the restructuring, operations digitalisation and expansion initiative of the company was at its final implementation stage and would cut costs and shore up its earnings.
According to him, “Despite the present temporary challenges , as we look into the future, there is no doubt that great prospects still lay ahead for the Company and your investment . I am optimistic that the current challenges in the polity would be satisfactorily addressed by the Federal Government of Nigeria for no business can thrive in an unstable polity.
“The recent Executive Orders signed by the Acting president aimed at improving the ease of doing business in the country is not only a step in the right direction but should be extended to addressing the infrastructural deficit.”
In his remarks, the Group Managing Director of DAAR Communications, Mr. Tony Akiotu, said the Group undertook a significant Corporate Social Responsibility (CSR,) programme within the year under review, as it aired medical fund appeals of 135 patients, free.
No dividend was declared and even the bonus shares proposed by the board was rejected by shareholders, who argued that it could further erode the financial position of the company in the capital market.