Radio Jamaica generated revenues of $1.2 billion in the March 2017 quarter, $156 million less than the December quarter but had $49 million more in direct expenses in the March quarter when it was expected that direct expenses would have fallen in keeping with the reduced income.
The group also reported lower profits in the March quarter compared with the December quarter and suffered a loss before taxation of $30 million and $65 million after an increased taxation charge of $35 million, bringing the full year taxation provision to $75 million. RJR ended the fiscal year with profit after tax of $145 million or just 6 cents per share. Results for 2018 should be much better as staff cost will fall with reduction in staffing while some one off cost that affected profit, should not recur.
In the March quarter, general expenses fell by $110 million from the December quarter to reach $562 million. The sharp change could result from reclassification of some expenses to direct cost, resulting in the jump in this area in the last quarter of the fiscal year. In the December quarterly report, the company stated that “increased cost of $64 million was incurred largely from further operational investments and one- off costs”. The areas that incurred the cost are continued rollout of 1 Spot Media, legal expenses incurred in protecting copy rights and defending legal action and repairs to broadcast transmitters. This was reconfirmed by Managing Director, Gary Allen in response to questions posed by IC Insider.com as the reason why profit in the Television segment had fallen even as revenues rose.
“The figures have seven months of the old structure. Only five months of HR synergies were realised in the financial year under review, as redundancies took place in September/November” Gary Allen, Managing Director advised IC Insider.com, in response to our question of how much staff cost is in the 2107 figures for person who were made redundant?
Prior to the merger investors were advised of major cost reduction and improved revenues that will flow from the merged entity. Allen stated ‘they have started with the HR synergies. Others are being realised as we integrate systems in the operations. Most elements will be implemented by the end of 2018/2019.”
Cash flow from operating activities was $363 million but $248 million was spent on acquiring fixed assets with the group ending with cash and equivalent of $291 million at the end of the year. RJR also has investments in bonds and Government of Jamaica securities amounting to $487 million.
Gleaner & RJR execs signing merger agreement in 2015
The RJR Group underwent major changes with the acquisition of the Gleaner media business. Comparing the 2017 fiscal year’s results with that of 2016 makes little sense with the latter having very little financial data of the acquired business.
Data contained in the segment results, provide some indication as to the performance of various parts of the group. The performance of the segments in 2017 over 2016 show, Audio Visual generating just $65 million more in revenues in 2017 to end with $1.868 billion and contributed $72 million to profits compared to $157 million in 2016, Audio comprising radio operations had revenues of $711 million compared to $567 million and contributed profit of $238 million versus $112 million, Independent Radio coming on stream and growth in Outside Broadcasts contributed to the increase. The print division showed revenues of only $78 million in 2016 and a loss of $190 million saw a major about turn, with revenues of $2.8 billion and profit of $173 million for 2017.
Allen went on to state that “the market will remain competitive and the economic conditions of Jamaica will continue to impact media spend. Improvements will come from those able to leverage market leadership positions, product diversification, overseas earnings and new marketing strategies. RJR has all the necessary ingredients to meet these challenges and the opportunities on the horizon.”
The stock traded at $1.60 on the Jamaica Stock Exchange on Friday and with IC Insider.com projecting earnings of 25 cents per share for 2018 fiscal year ending in March, the stock seems attractive coming against a back ground of continued growth in the Jamaican economy.
The 
The selling rate for the Canadian dollar rose to J$99.39 compared to J$99.07 at the close on Thursday while the British Pound cost slightly more at the close on Thursday with J$166.58 buying the British currency versus J$165.40 on Thursday and the Jamaican dollar lost value against the euro, with it taking J$147.94 to buy the European common currency on Friday versus Thursday’s J$146.66.
Thursday, with attempts to trade at $7.40 on Friday thwarted by the circuit breaker rules. The trade was cancelled after the market closed.
Several stocks are trading below these averages, and have potential for more gains in the months ahead, barring major negative developments.
The markets offer some good opportunities for bottom fishing, with 
favourably with 13.4 for the overall main market and 13 for Junior Market, based on 2017 estimated earnings. Several stocks are trading below the average, and have the potential for more gains for the rest of 2017, barring major negative developments.
Trading on the Junior Market on Tuesday ended with much lower volume and values than on Monday. Total volume going through the market ended at 1,467,646 units valued $7,509,226, compared to 112,078,312 units valued $371,345,580 on Tuesday. 
At the close of the market, Access Financial climbed $1.20 and closed at $46.20 with 834 units changing hands, AMG Packaging fell 52 cents to close at $4.08 with 2,702 units changing hands, Cargo Handlers closed at $16 with just 3,281 shares trading, Caribbean Cream fell 10 cents in trading 58,192 units to end at $7.45, Caribbean Producers traded 29,500 units and rose 21 cents to end at $3.50, Derrimon Trading had 32,452 units changing hands to close at 50 cents higher to $9, Dolphin Cove jumped $2 to end at $20 with 4,063 shares changing hands, Eppley rose 99 cents with 1,400 units changing hands, to close of $11. General Accident gained 20 cents and closed trading with 23,724 shares to end at $2.90, Honey Bun had 14,991 shares changing hands to close at $7, ISP Finance traded only 1,667 shares to end at $24, Jamaican Teas added 1 cent in trading 850,000 shares at $4.27, Jetcon Corporation ended at $14.50 with 18,673 shares trading, after falling 1 cent, 
Knutsford Express traded 30,798 shares to end at $16.45, Lasco Distributors gained 5 cents and ended trading 23,000 units at $7.05, Lasco Financial had 83,688 shares changing hands to end at $4. Lasco Manufacturing shed 19 cents to end at $4.80 trading 123,760 shares. Main Event dropped 1 cent to end trading with 8,418 shares at $6.49.Medical Disposables ended at $5.90 after advancing 10 cents with 9,500 units crossing the exchange, Paramount Trading declined by 19 cents and ended with 47,270 shares changing hands at $2.85 and tTech ended with 49,733 units trading at $7.90.
Shuffling of stocks in the TOP 10 list was quite pronounced this past week with two companies exiting and entering each list. 
TOP 10 list as a result, while 
In a number of cases, the TOP stocks will need to deliver results in the upcoming quarter in order to send a message that the potential they have will be manifested.
2017 is set to be the year with the most listing on the Jamaica Stock Exchange even as just four listings have made it to the market so far in 2017. At the end of 2016, eighteen new listings were expected based on feedback the stock exchange obtained from brokers and companies expressing an interest in listing.
Main Event Entertainment
The Barbadian based Sagicor Group is reporting net profit of US$23.4 million for the first three months of 2017, compared to the prior year of US$22.3 million. Profit flowed from revenues for the quarter of US$282.5 million, compared to US $264.4 million for the corresponding period in 2016, an increase of US$18.1 million.
