RJR/Gleaner charting new course

RJR/Gleaner launched TVJ International with 24 hours service in the Cayman Islands in August and two other Caribbean Countries are in line with other countries also showing interest in the service.
The launch of a new TV service is just one of a number of changes to the group’s services that the directors updated more than 160 shareholders attending the annual general meeting held at the Jamaica Pegasus Hotel in Kingston today. The vast majority of RJR shareholders in attendance continue to be representative of the older loyal RJR AM listeners.
Some of the several changes that the group is undertaking including merging of certain operations will lead to greater efficiency, reduced rental and personnel cost. Work is being carried out to expand RJR 94 in areas that currently have room for improved coverage that is expected will lead to greater listenership and ultimately increased revenues. A number of transmission sites were merged with existing ones in the past financial year, reducing rental expenses, electricity, repairs and maintenance.
A raft of changes within the group that are underway if successful, will result in major changes to the group and generate increased revenues and profit as well as a number of new revenue-generating services. The effect, the future will look markedly different than the past, with digital technology playing an increasing role in providing services and driving revenues not only locally but globally.
Shareholders were told that the main reasons for the loss of $22 million made for the year to March 2019 were due to losses in staging the FIFA World Cup in 2018 amounting to approximately $40 million and adjustments occasioned by adopting new accounting standards that accounted for $60 million in added cost. The group nevertheless recorded growth in revenues across all segments of the business, with TV revenues climbing 16 percent, audio mainly radio up 4 percent and print 4 percent.

RJR shareholders at the 2019 AGM at the Jamaica Pegasus

All companies within the group will be on one accounting platform that will allow for the completion of financial statements within five days of the month-end. The move will also result in reduced costs in maintaining accounting records.
The group saw a major turnaround in fortunes in the first quarter to June for the 2020 fiscal year, with profit of $24 million up from a loss of $70 million in 2018 although revenues from sales rose modestly to $1.36 billion from $1.35 billion but gross profit jumped to $700 million from $597 million. The improved position in the quarter over 2018 is due primarily, to losses incurred in staging the World Cup matches in 2018 that has no recurred in 2019 and good growth in regular revenues in the 2019 quarter. IC Insider.com forecast is for earnings of 25 cents per share for the current fiscal year and 35 cents for the 2021 fiscal year. RJR’s stock price started the year at 85 cents has gained 129 percent so far and closed trading at $1.95 the Jamaica Stock Exchange on Wednesday with a PE of 8 times current year’s earnings.

About IC Insider.com