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RJR Group Could Be Facing Clear and Present Danger Reports State Group Hurting Financially

“SSL is however not convinced of a turnaround anytime soon, stating in its report that “RJR has not been able to contain its costs as they increased across the board in Q02 2008/2009. Therefore, SSL is not convinced that RJR will increase revenues and lower costs in the near future.”

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For most Jamaican media houses, the massive spending during the last election campaign was a welcomed blessing. Were it not for that well-timed shot in the arm, many media houses would be bleeding far more red ink today. With mounting operational expenses due to the high cost of electricity, transportation, gas and standby power plants at broadcast transmission sites, media houses globally are spending long hours brainstorming potential strategic solutions, for it has become increasingly clear that media is not for the weak of heart.

Word on the street is that Jamaican radio stations are hurting and hurting badly. Radio Jamaica Ltd. (RJR), the largest and most diversified of the electronic media houses, recently reported weak results for the second quarter and the six month period which ended September 30, 2008. The company posted an operating loss of Jamaica Dollars (JMD) 20.88mm compared to an operating profit of JMD 27.72mm; receiving a tax credit this period totalling JMD 14.76mm compared to being charged tax of 6.33mm previously. Nevertheless, RJR reported a net loss for the period of JMD 31.55mm compared to a profit of JMD 4.63mm previously.

Gary Allen, Managing Director for RJR, who recently took over the reins from long time Chairman and Managing Director Lester Spaulding, must be having sleepless nights as he struggles to find a new path from what must be viewed as clear and present danger. Shareholders’ Equity declined 3.62% to JMD 1.04B from JMD 1.08B. This decrease is mainly due to a 25% fall in unissued share capital to JMD 41.25mm from JMD 55mm, and a 4.34% decline in Retained Earnings to JMD 557.05mm from JMD 582.3mm.

Allen certainly has his work cut out for him. It’s because of the RJR Groups’ activity in the electronic media that you can view the performance and get a feel for how other media houses are faring.

RJR reported losses per share of JMD 0.0717, compared to earnings per share (EPS) of JMD 0.0233 previously. The organization attributes its loss to tropical storm Gustav, rising energy costs, transportation and insurance charges, as well as expenses incurred for the Olympics and World Cup qualifiers.

In a recently emailed report (17/11/08) from Michelle Hirst, Research Manager at Stocks and Securities Limited (SSL), headed by Managing Director Mark Croskery, it was noted that RJR started the year well, but has fallen hard during the first six months of 2008-2009, due to the current economic environment. RJR states that revenues from endeavours such as the World Cup qualifiers will be seen in its nine month 2008-2009 results.

SSL is however not convinced of a turnaround anytime soon, stating in its report that “RJR has not been able to contain its costs as they increased across the board in Q02 2008/2009. Therefore, SSL is not convinced that RJR will increase revenues and lower costs in the near future. The stock has a book value per share (BV/Share) of JMD 2.95. It is currently trading at JMD 3.20 with a price to book value (P/BV) of 1.08. RJR has been trending downwards for the past three years decreasing 46.67% from JMD 6.00 on October 3, 2005. SSL recommends investors SELL this stock at current levels of JMD 2.85 and up.”

Informed media sources indicate that TVJ led by General Manager Kay Osborne, which according to all recent media surveys is the number one and most viewed television station, is carrying the group, but the strain is beginning to tell on the operations. Radio brands are performing below budgets and the flagship station RJR94 is now dangerously lagging in media polls. Hitz 92FM is not working as planned and there are frantic moves to change the all sports and reggae music format. FAME is not as bad as the other two stations but still under performing.

According to the SSL email report, “Turnover at the media group increased 3.61% to JMD 785.44mm from JMD 758.08mm. However, in Q02 2008/2009, RJR reported a 2.63% decline in turnover to JMD 401.54m from JMD 412.4mm. RJR has attributed this decrease to the slowdown caused by Tropical Storm Gustav and the fact that prior year revenues included political advertising in the period leading up to the general elections. Other Operating Income climbed 89.15% to JMD 19.01mm from JMD 10.05mm.”

A closer inspection of the numbers by SSL indicates that RJR like other media houses is struggling to keep costs down. “Cost of sales increased 20.2% to JMD 356.22mm from JMD 296.35mm due to the increase in production costs for Rising Stars (the company states that revenues will be seen in Q03 2008/2009) and the impact of broadcasting rights associated with World Cup Football Qualifiers and the Olympics.”
As a result, Gross Profit declined 7.04% to JMD 429.22mm from JMD 461.73mm.

The SSL email goes on to report that distribution costs fell slightly to JMD 145.58mm from JMD 146.02mm, while these costs increased 2.42% in Q02 2008/2009 to JMD 75.44mm from JMD 73.66mm. The quarterly increase in distribution costs is because of changes made to the marketing department’s structure in an attempt to improve customer service.

Administrative Expenses saw a similar decline, falling minimally to JMD 166.53mm from JMD 167.7mm; however Q02 2008/2009 reported an increase in administrative expenses to JMD 90.25mm from JMD 82.74mm.

Back in April of this year, Gary Allen announced that the RJR Group was undergoing management changes aimed at implementing new strategic competitive adjustments in the media industry. The changes introduced were designed to improve profitability and increase market share, the effects of which are still to be felt.

Among the changes was the appointment of experienced programmer and former station manager for FAME FM, Francois St Juste, to the new position of
General Manager – Radio Services. In this new role, he assumed general management responsibilities for the following radio brands, RJR 94 FM, FAME 95 FM, and HITZ 92 FM.

Carlene Swaby was also appointed to the position of Marketing and Sales Manager for Radio Services, combining marketing and sales functions of the three radio stations under one manager. It wasn’t clear how this would have impacted the role and function of Gary Cole who was recently appointed Marketing Director and who according to many marketing insiders is still to make his mark.

The RJR Group News Centre was re-structured to extend its news dominance in the electronic media and to diversify news operations by establishing additional revenue streams. The company appointed experienced journalist and media manager, Milton Walker, to the position of Group Head, News and Current Affairs. Milton was formally with the CVM Group owned by Michael Lee Chin, and chaired by his brother Wayne Chin. Kathy Barrett was appointed, Deputy Group Head, News and Current Affairs. Other appointments in this department included Kerriann Lee to Television News Editor; Janice Budd Radio News Editor (acting); and Earl Moxam Special Assignments Editor.

Due to increased projects associated with TVJ’s growth in local programs and products, Michael Sharpe was reassigned from his role as Projects Manager in the News Centre, to the new position of Projects Manager for Television Jamaica Limited.

The launch of Reggae Entertainment Television (RETV) and Jamaican Network New (JNN) to gain national coverage, as well as to introduce RETV in more than ten Caribbean countries, also added to the rise in operating expenses. This coupled with the shakeup in the structure of senior management and the addition of an internal director impacted the bottom line during the period. (See related story in this issue)

These changes the company said will drive the implementation of several initiatives that will improve shareholder value and profitability in the group.

Footnote Directors Selling Shares: The Jamaica Stock Exchange (www.jamstockex.com) on Friday November 21, 2008 reported that Radio Jamaica Ltd. (RJR) has advised that a director sold 101,000 RJR shares between November 4, 2008 and November 11, 2008.
Also further advisory indicate that Radio Jamaica Ltd (RJR) has advised that a director has sold 170,509 RJR shares on December 3, 2008 and 9,663 RJR shares on December 4, 2008.

Source: Stocks and Securities Limited (SSL) notes from the financial results (except where noted, all comparisons are for the 6M period year over year):

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EduFocal Faces Equity Deficit of $135M Amid $314M in Accumulated Losses

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Gordon Swaby Chief Executive Officer of EduFocal Group (“LEARN”) has released the following unaudited condensed consolidated financial statements for the first quarter ended March 31, 2025.

For the three months ended March 31, 2025, the Group generated revenue of $29.97 million, which remained relatively flat compared to the $30.01 million earned in Q1 2024. This consistency aligns with the Group’s strategic shift toward more predictable recurring revenue streams. Notably, the team has continued to invest heavily in Amigo, a new initiative designed to drive scalable recurring income through a modernized business model.

Operating profit for the first quarter of 2025 amounted to $5.61 million, compared to an operating loss of $12.59 million in Q1 2024. This performance is largely attributed to effective cost-containment strategies and the streamlining of operations.

Administrative expenses totalled $12.88 million, a 62% reduction from the $34.16 million recorded in the prior year’s corresponding period. This drop is aligned with the Group’s internal restructuring and cost-efficiency initiatives.

The Group reported a net loss of $1.34 million, significantly narrowed compared to $20.87 million in Q1 2024. The reduction in losses was achieved despite finance costs of $6.95 million, which continue to weigh on performance.

Amigo, in particular, is extremely important to our future, and we have invested heavily in its development. Early feedback from potential customers about Amigo has been extremely positive, and we anticipate immediate opportunities to leverage this software beyond Jamaica. This investment underscores our commitment to driving top and bottom-line growth through innovative educational solutions.

Performance of Divisions

The Learn division continues to concentrate on the expansion of its market presence globally, aligning with the Group’s strategic objectives for growth and market penetration. With the closure of Academy and the acquisition of Clever School Teacher (CST), EduFocal Nigeria and EduFocal Africa, the division remains committed to widening the group’s footprint in these territories.

The Group is confident in its strategic plan to revitalize its financial outcomes. The Management team is actively addressing these challenges, to mitigate any further associated risks, which will in turn steer the division to sustained growth and profitability.

While the Group continues to operate at a net loss, the significant improvements in EBITDA, cost control, and operating margins are promising indicators of recovery. The management team remains confident in its strategic plan to return to profitability, emphasizing disciplined execution, increased software adoption, and regional expansion.

Financial Position

As at March 31, 2025, total assets stood at $235.41 million, an increase from $228.68 million as at March 31, 2024. The increase reflects stronger receivables and the continued capitalization of software development costs.

The Group’s non-current assets totalled $163.74 million, primarily comprising intangible assets of $162.77 million and property, plant and equipment of $968,765. Current assets amounted to $71.68 million, with receivables and prepayments of $34 million, a director’s account of $36.76 million, and cash of $914,348.

However, the Group continues to operate with a capital deficiency, with shareholders’ equity showing a deficit of $134.85 million, driven by accumulated losses of $314.16 million. Long-term borrowings stood at $153.49 million, while current liabilities totalled $216.78 million, largely due to accounts payable of $127.69 million and the current portion of long-term loans amounting to $90.36 million.

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Tropical Battery Q2 FY2025 Demonstrated Resilient Financial Performance Across Group

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Alexander Melville Chief Executive Officer Tropical Battery Company Limited (TROPICAL) has released the following Interim Financial Statements For The Second Quarter Ended March 31, 2025

The second quarter of FY2025 represents a defining chapter in Tropical Battery’s transformation into a multi-market, diversified energy solutions group. With operations spanning Jamaica, the Dominican Republic, and the United States, and products shipping to over 35 countries, we continue to scale a resilient and future-facing platform that aligns with global megatrends in energy storage, electrification, renewable energy, and mobility. We have delivered solid operating results while executing key elements of our long-term strategic plan, against a favourable macroeconomic backdrop, marked by stabilising inflation, a return to growth-oriented monetary policy, and strong investor appetite for energy transition assets.

We continue to benefit from diversified revenue streams and scalable infrastructure. Rose Batteries (USA), Kaya Energy (Dominican Republic and Jamaica), and Tropical Mobility are now fully integrated and operationally aligned. These businesses give us direct exposure to energy storage systems, solar EPC services, and electric vehicle supply chains—markets projected to grow at 20%+ CAGR over the next decade (Straits Research, 2024; IEA, 2024).

Our U.S. operations provide access to the world’s largest energy storage market. At the same time, the Dominican Republic, six times the size of Jamaica by GDP, offers a rapidly expanding base of commercial and industrial customers. These strategic positions allow us to scale quickly while limiting overexposure to any single geography.

The second quarter of FY2025 demonstrated a resilient financial performance across Tropical Battery Group, with key metrics reflecting operational discipline and improved commercial execution. Gross operating revenue totalled J$1.63 billion, representing a 5.1% year-over-year increase compared to the J$1.55 billion posted in Q2 FY2024. On a year-to-date basis, revenue rose 34%, underscoring the strength of our core battery and energy businesses, alongside the contributions from new and recently integrated subsidiaries.

A key highlight for the quarter was the continued improvement in gross profit margins, which rose to 34.8%, up from 30.9% in Q1 FY2025 and 31.5% in Q2 FY2024. This reflects the successful implementation of strategic pricing actions, supplier cost recovery, and process corrections initiated in late Q1. These efforts helped to fully offset the impact of increased input costs and restored margins to target levels. Gross profit for the period stood at J$567 million, a 15.9% improvement over the prior year.

Operating expenses increased to J$428 million, compared to J$305 million in Q2 FY2024, reflecting one-time APO marketing expenses, investments in new talent management to help grow revenue in the United States, the continued expansion of group operations and the complete consolidation of Rose Batteries and Kaya Energy Group. These investments in integration, staffing, and infrastructure are essential for scaling our platforms in the U.S., Dominican Republic, and Jamaica, and are expected to yield further efficiencies in subsequent quarters.

Finance costs rose to J$132 million, a 30% year-over-year increase, driven by the full-quarter impact of the bridge loan facility used to acquire Rose Batteries. This was partially offset by J$26 million in finance income, which brought total net finance costs to J$106 million. As a result, while operating profitability remained substantial, bottom-line profit for the quarter was modest, with net profit of J$2.78 million. Nonetheless, this marks a significant turnaround from the Q1 net loss of J$96.2 million, validating the underlying health of the business and the one-off nature of prior period adjustments.

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Main Event Entertainment Records $9.4M Net Loss For April 2025 Quarter

As part of its long-term strategy to reduce revenue volatility and deepen brand equity, the company has begun investing in its proprietary events. The performance of these initiatives is expected to materialise in the upcoming quarters.

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Solomon Sharpe Chief Executive Officer For Main Event Entertainment Group Limited Has Released The Following Unaudited Results For Six Months Ended April 30, 2025

The second quarter of the financial year unfolded within a still recovering economic environment. Jamaica experienced two consecutive quarters of economic contraction prior to this period, with the latest data from the Planning Institute of Jamaica (PIOJ) indicating a return to modest growth.

As a business closely tied to consumer activity and discretionary spending, MEEG’s performance is inevitably influenced by prevailing economic conditions. In times of reduced disposable income, demand for entertainment, events, and promotional services often comes under pressure. This context has framed many of the challenges and opportunities we faced during the quarter.

The company generated revenue of $306.368 million for the second quarter ended April 30, 2025. This represents a decline of $112.207 million or 27% compared to the second quarter of 2024. For the half-year, the company earned revenue of $891.395 million, reflecting a reduction of $94.932 million or 10% relative to the corresponding period last year. This contraction in revenue is primarily attributable to continued softness in core event categories, most notably Entertainment & Promotions and M-Style Decor. Performance was impacted by a combination of lower client marketing spend, fewer large-scale productions, and the nonrecurrence of several high-value projects that contributed materially to the prior year’s second quarter. Despite the general slowdown, the period saw several new and re-engaged clients contribute positively to revenue performance.

As part of its long-term strategy to reduce revenue volatility and deepen brand equity, the company has begun investing in its proprietary events. The performance of these initiatives is expected to materialise in the upcoming quarters.

Gross profit for the quarter was $165.818 million, compared to $198.064 million in the second quarter of 2024 — a decline of $32.246 million or 16%. Gross profit for the six months amounted to $467.485 million, down $46.402 million or 9% relative to the same period last year.

The company’s gross margin remained relatively stable at 54% for the quarter, a slight improvement from the 53% reported in the prior year. This increase reflects stronger project cost control and enhancements in resource planning, even amidst a softer revenue performance.

The company recorded a net loss of $9.337 million for the quarter, compared to a net profit of $20.016 million in Q2 2024. For the six-month period, net profit stood at $64.329 million, a decrease of $55.942 million or 47% from the $120.271 million earned in the comparative period. This swing was primarily driven by the reduction in revenue and other operating income, which was not fully offset by cost reductions.

Administrative and general expenses for the quarter totalled $143.244 million, an increase of $15.757 million or 12% compared to $127.487 million in the prior year.

Selling and promotional expenses also rose to $7.177 million, up 62% year over year, driven by increased brand-building efforts.

Depreciation expense declined by approximately $6.718 million or 20% compared to the prior quarter and by $9.764 million year-over-year, reflecting the completion of previous capital cycles. Conversely, amortisation charges increased, largely due to the refinancing of existing leases and the addition of new ones. These movements are aligned with the company’s strategy to invest in equipment and assets that enhance operational capacity and service delivery.

Total operating expenses for the quarter were $186.794 million, compared to $178.886 million in Q2 2024, an increase of 4%. On a year-to-date basis, total operating expenses amounted to $405.514 million, up $20.279 million or 5% over the $385.235 million recorded in the prior year.

Finance costs were marginally higher at $2.959 million, while taxation for the quarter reflected a credit of $1.876 million, corresponding to the pre-tax loss position.

The company reported a loss per share of $0.03 for the second quarter, compared to earnings per share of $0.07 in the prior year. For the six-month period, EPS was $0.21, down from $0.40 in 2024.
As at April 30, 2025, total assets stood at $1,219.275 million, broadly in line with $1,219.929 million recorded at the end of the second quarter of 2024.

Cash and bank balances amounted to $141.700 million, with short-term deposits increasing to $252.598 million, together reflecting a stable liquidity position.

Receivables closed at $299.718 million, slightly below the $309.556 million reported in the prior year.

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The LAB Posts $20.6M Half-Year Profit, Down 58%, Impacted by Revenue Timing and Margin Compression

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Kimala Bennett Chief Executive Officer for Limners and Bards Limited (The LAB) has released the following unaudited consolidated financial statements for the six-month period ended April 30, 2025, prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated results include the performance of subsidiary Scope Caribbean Limited (Scope), whose core business involves the scouting, placement, and management of talent, supported by the development and maintenance of a comprehensive talent database.

For the period under review, the Group’s consolidated balance sheet remained sound with a stable cash position, providing the financial flexibility to support ongoing operations and strategic initiatives.

Revenue over the 6-month period of $460.2 million, represented a 3.3% increase compared to the corresponding period in 2024. This growth was driven primarily by increased activity in the Production and Media business segments. Media contributed $240.7 million, followed by Production at $151.8 million, and Agency at $67.5 million.

Gross profit amounted to $175.4 million, reflecting a 2.7% decline year-over-year. This was due to a higher proportion of revenue being derived from Media, which typically carries lower margins relative to the Agency segment. This shift in revenue mix also resulted in a 2% decline in the company’s net profit margin.

Net profit for the six-month period stood at $20.6 million, a 58.3% decline compared to the same period in the prior year. The decrease was primarily attributable to lower gross margins and a reduction in second-quarter revenue which was largely due to seasonal variations and the timing of project deliveries.

Operating expenses, comprising administrative, selling, and distribution costs, increased by $14.4 million or 10 percent compared to the same period last year. This increase primarily reflects strategic investments in talent, particularly in areas critical to our growth agenda such as business development, content creation, and enhancing the overall customer experience. While these investments contributed to higher short-term costs, they are considered essential to scaling our operations and building long-term shareholder value.

Total assets amounted to $1.03 billion, reflecting a decrease of $11.2 million or 1.1 percent, mainly attributable to normal depreciation. Current assets increased marginally to $865.9 million, up $1.6 million from the prior year.

Cash and cash equivalents stood at $332.4 million, down $226 million year-over-year, due primarily to increased investment in the development of proprietary content assets.

Accounts receivable increased by $39.5 million, and management continues to work closely with clients to manage credit terms and reduce outstanding balances.

Shareholders’ equity grew to $659.1 million, up 1.8 percent from $647.3 million in the prior-year period.

The LAB remains focused on disciplined execution of its growth strategy, with a continued emphasis on improving operational efficiency, diversifying revenue streams, and delivering long-term value to shareholders

Outlook & Growth Strategy

Looking ahead, the Group remains focused on executing its strategic roadmap amidst continued transformation in the marketing and creative services sector. Our efforts are concentrated on expanding and diversifying revenue streams, acquiring new clients, and introducing new service lines that align with emerging market needs. At the same time, we are maintaining a strong emphasis on cost discipline and efficiency.

The integration of artificial intelligence into our operations is expected to further streamline processes and deliver cost savings where appropriate.

Continued investment in content development also remains a strategic priority.

Despite ongoing macroeconomic uncertainty, 2025 has presented key opportunities for us to advance several critical initiatives. Our revenue expansion strategy includes the rollout of our “Five-in-25” content plan, which focuses on the development of five scalable content properties, the geographic expansion of our Agency and Production services, and the monetization of existing financial and intellectual assets to enhance top-line growth.

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SEE ALSO

Meta’s AI Ad Revolution Is A Seismic Shift in the Media Landscape – Its Impact On Caribbean Agencies

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Scotiabank Trinidad And Tobago Declares Dividend Of 70 Cents Per Share For 2nd Quarter

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Scotiabank Trinidad and Tobago Limited (The Group) reported Income After Taxation of $340 million for the 6 months ended 30 April 2025. This represents an increase of $17 million or 5% compared to the 6 months ended 30 April 2024. Income after Tax for the second quarter was $174 million, an increase of $14 million or 9% over the prior quarter’s performance.

This improved profitability resulted in an increased Return on Equity (ROE) of 14.9% and a stable Return on Assets (ROA) of 2.2% over the prior year.

Based on these financial results, Scotiabank Trinidad and Tobago Limited is pleased to declare a dividend of 70 cents per share for the 2nd quarter, for a total of 140 cents for the first half of fiscal 2025. Earnings per Share (EPS) increased to 192.9c with a strong Dividend yield of 5.35%.

Gayle Pazos, the Managing Director of Scotiabank Trinidad and Tobago Limited commented, “I am pleased to report on the Group’s strong financial performance this quarter.

By leveraging digital advancements and optimizing asset allocations, the Group has set a solid foundation for future growth and resilience in an ever-evolving financial landscape.

Income After Tax increased by 5% year on year, driven by core revenue growth. We have achieved significant asset growth of $1.8 billion or 6%, testament to our robust strategies and market positioning. Loans to Customers grew $716 million or 4%, with our investment portfolio growing by $1.6 billion or 27%.

This strong asset growth underscores our commitment to optimizing market conditions and ensuring consistent value creation for our stakeholders. Customers’ Deposits also grew by $1.6 billion or 7%, with digital adoption increasing to 57%. By leveraging digital advancements and optimizing asset allocations, the Group has set a solid foundation for future growth and resilience in an ever-evolving financial landscape.

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