RJR Gleaner Posts Significant Downturn In Revenues, An After Tax Loss, Despite Positive Results In Cost Management – Allen
While the RJR Gleaner Communications Group exhibited positive results in the area of cost management, Group Chief Executive Officer Gary Allen, blamed a significant downturn in revenues across all segments in the broader sector for the Groups after tax loss of JA$47 million compared to a net profit of JA$54 million for 2016.
Addressing shareholders in the recently published 1st Quarter Unaudited Financial Statement for the period ended June 30, 2017, Mr. Allen fingered major players in the financial, beverage, foods, telecommunications and the retail sectors, curtailing spending in greater amounts than the growth experienced in the insurance, banking, distributive trade and social sectors.
Increased fees associated with expanding 1spotmedia, as well as the impact of contractual obligations for salary increases saw direct costs increasing by 1.4% or $8.6 million to $636 million.
Selling Expenses down 4.3% or $8.7 million coming in at $193 million was contained by pulling back on promotional costs and the payout of lower sales commissions.
Other cost containment measures were also deployed in the areas of administrative expenses, driven by synergies from the reduction in the cost of insurance, security, maintenance and other admin expenses.
Mr. Allen assured shareholders that management has responded with the introduction of revenue stimulation measures and has implemented further cost monitoring for the remaining quarters to re-balance performance. BM
To view Radio Jamaica Limited – 1st Quarter Unaudited Financial Statement for the period ended June 30, 2017 click HERE