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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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Unlocking Future Potential: The Impact of USAGE Group’s Internship Programs on Tertiary Level Students

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Bridging the Gap Between Education and Real-World Experience

In today’s competitive job market, the value of practical experience cannot be overstated. Recognizing this need, USAGE Group has pioneered an innovative approach to talent development through its structured Internship Programs, offering university and college-level students unparalleled opportunities to gain hands-on experience while completing their academic requirements.

Empowering the Next Generation:

At USAGE Group, internships are more than just a temporary stint; they are a gateway to professional growth and career advancement. Through carefully crafted programs, students are immersed in real-world projects and mentored by industry experts, equipping them with the skills and knowledge needed to excel in their chosen fields.

A Dual Purpose:

The internship programs at USAGE Group serve a dual purpose, benefiting both students and the company itself. For students, these programs provide invaluable exposure to the inner workings of a dynamic business environment, allowing them to apply theoretical concepts learned in the classroom to practical, real-life situations. Additionally, students accrue hours of hands-on work experience, fulfilling requirements for their academic programs while laying the foundation for future career success.

Opportunities for Growth:

Interns at USAGE Group are not merely bystanders; they are active participants in the company’s mission to deliver top-tier support services to Caribbean SMEs. From assisting with client projects to contributing to strategic initiatives, interns are given meaningful responsibilities that challenge and inspire them to reach new heights. Moreover, they have the opportunity to work alongside seasoned professionals, gaining insights and mentorship that are invaluable to their professional development.

Building a Talent Pipeline:

By investing in internship programs, USAGE Group is not only nurturing the next generation of talent but also building a pipeline of skilled professionals who may eventually join the company on a full-time basis. Through internships, USAGE Group identifies promising individuals who embody the company’s values and ethos, laying the groundwork for future recruitment and retention efforts.

Testimonials from Interns:

“The internship program at USAGE Group has been a transformative experience for me. Not only have I gained practical skills that will serve me well in my career, but I’ve also had the opportunity to work alongside some of the brightest minds in the industry.” – Sarah, Business Administration Student

“I never imagined that an internship could be this impactful. At USAGE Group, I’ve been given real responsibilities and treated as a valued member of the team. It’s been an eye-opening experience that has solidified my career aspirations.” – John, Computer Science Student

Join the Journey:

For university and college-level students seeking to gain practical experience and jumpstart their careers, USAGE Group’s Internship Programs offer a pathway to success. Whether you’re studying finance, marketing, IT, or any other field, there’s a place for you to thrive at USAGE Group.

Contact USAGE Group Today:

To learn more about internship opportunities at USAGE Group and how you can become a part of our dynamic team, contact us today.

Contact Information: Email: usagejamaica@gmail.com

USAGE Business Support Services Group Internship Program Application Form – 2024

As USAGE Group continues to lead the way in revolutionizing business support services in the Caribbean, its commitment to nurturing talent and empowering the next generation remains unwavering. Through internship programs that prioritize hands-on learning and professional growth, USAGE Group is shaping the future of the region’s workforce, one student at a time.

Proud Member and Partner of The Silicon Mountain Project
Operating from “Silicon Mountain – The Business Technology and Innovation Hub of the Caribbean”
Mandeville Manchester Jamaica

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Revolutionizing Business Support Services in the Caribbean: The USAGE Group Story

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How USAGE Group is Redefining IT-Centered Support for Caribbean SMEs

In the dynamic landscape of Caribbean business, where innovation meets necessity, one company stands out for its commitment to delivering top-tier support services to small and medium enterprises (SMEs). Conceptualized and formed in 2020, USAGE Business Support Services Group has swiftly emerged as a beacon of efficiency and cost-effectiveness, offering a comprehensive suite of Corporate and Operational Services tailored to meet the unique needs of Caribbean businesses.

Unveiling USAGE Group:

At the heart of USAGE Group’s mission is a dedication to providing IT-centered Business Support Services that empower Caribbean SMEs to thrive in today’s competitive market. With a diverse range of offerings, including Accounting and Finance solutions, USAGE Group is not just a service provider but a strategic partner committed to the success of its clients.

Putting Customer Experience First:

What sets USAGE Group apart is its unwavering commitment to customer service and experience. Embedded in the company’s DNA is the mantra “U In Everything We Do,” reflecting a culture that prioritizes the needs and satisfaction of its clients above all else. From the initial consultation to post-implementation support, USAGE Group ensures a seamless and enjoyable experience for every client.

Why Partner With USAGE?

Affordable Quality Monthly Subscription Services: USAGE Group offers cost-effective subscription services designed specifically for SMEs, providing access to high-quality support without breaking the bank.

Access to Multitalented Professionals: Clients of USAGE Group benefit from a team of self-motivated professionals with diverse skills and experiences, capable of tackling even the most complex business challenges.

Expertise and Guidance: Beyond service delivery, USAGE Group offers expertise and guidance to clients, ensuring that every step of the process is smooth and collaborative.

True Collaboration: At USAGE Group, every project is approached as a collaboration, guiding clients from their current state to their desired outcomes with a process that prioritizes mutual growth and success.

Commitment to Quality: From concept to implementation and beyond, USAGE Group remains committed to delivering quality services that positively impact the bottom line of its clients.

Empowering SMEs for Success:

The overarching goal of USAGE Group is clear: to provide SMEs with first-world Accounting, Finance, and Corporate Services that exceed expectations, unlocking their full potential and driving tangible results. By maximizing Business-to-Business (B2B) opportunities and fostering long-term partnerships with SME CEOs, Entrepreneurs, and Business Owners, USAGE Group is poised to catalyze growth and expansion across the English-speaking Caribbean.

In a landscape where agility and innovation are paramount, USAGE Group stands as a testament to the transformative power of strategic partnership and customer-centricity. As Caribbean SMEs navigate the complexities of the modern business world, USAGE Group emerges as a trusted ally, empowering them to thrive and succeed in the digital age.

Contact USAGE Group Today:

For SMEs seeking to revolutionize their business support services and unleash their potential, USAGE Group offers a pathway to success. Contact USAGE Group today for a free consultation and discover how their innovative solutions can transform your business.

Contact Information: Email: usagejamaica@gmail.com

USAGE Business Support Services Group Internship Program Application Form – 2024

Proud Member and Partner of The Silicon Mountain Project
Operating from “Silicon Mountain – The Business Technology and Innovation Hub of the Caribbean”
Mandeville Manchester Jamaica

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The LAB Reporting Higher Net Profits Based On Strong Focus On Agency Segment

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Kimala Bennett Chief Executive Officer for Limners and Bards Limited (The LAB) has released the following unaudited financial statements for the three months ended January 31, 2024, which have been prepared in accordance with International Financial Reporting Standards (IFRS). The consolidated results include the subsidiary Scope Caribbean Limited (Scope) whose principal business is the scouting, placement and management of talent while expanding and maintaining a database of quality talent.

The LAB achieved higher net profits when compared to the corresponding period last year. This was based on the strong focus on the Agency Segment of the business for this quarter, as the company continued to build brands. The Agency Segment provides the highest profit margin and as such bolstered the results for the period. The company also implemented cost containment measures, which resulted in a 19.2% reduction in administrative expenses when compared to prior period. We continue to maintain a strong balance sheet and our cash position grew stronger over the period. Our asset base increased, as we reinvested in the business through further upgrading film studio facilities.

Revenue for the three months ended January 31, 2023, was $219.4 million, down 11.4% relative to the prior period. This decline was primarily attributable to a reduction in production during the period due to its cyclical nature. Notwithstanding this, the Agency segment outperformed the comparable period. The revenue achieved was derived from the company’s core business lines: Media totalling $118.3 million, followed by Production with $29.3 million and Agency with $71.6 million.

The company remains fully focused on executing its strategy of diversifying its income, through engaging new clients and the introduction of new service lines. These strategic endeavours are aligned with our company’s expansion strategy into emerging markets, all aimed at fostering sustainable growth, increased revenues, enhanced profitability; while proactively anticipating the evolving needs of our valued clients and enhancing shareholders’ value.

Gross Profit for the three months was $88.9 million, down 3.3% when compared to the corresponding period. Net Profit achieved was $26.2 million, up 295.7% relative to the comparable period. due to higher gross profits from the agency segment and lower administrative expenses. Administrative expenses decreased by $16.3 million or 19.2% in comparison to the corresponding period last year. These decreases are primarily due to reduction in contractor and staff cost.

The consolidated Balance Sheet saw total assets increasing by $119 million or 15.1% to $909.3 million compared to $790.2 million in the corresponding period. This increase in assets is driven by building and film studio facilities improvement and purchases of new production equipment to facilitate future growth.

Current Assets amounted to $731.7 million, increasing by $107.6 million over the prior year, primarily due to a 43.6% increase in cash and cash equivalent. Management continues to maintain tight monitoring and control over receivables. Cash and cash equivalent increased by $142.4 million over the corresponding period last year. Shareholders’ equity grew to $624 million, up from $548.1 million or 13.9% over the corresponding period last year.

The LAB is pleased to report significant progress in our strategic initiatives. We have successfully completed the pilots for two TV/web series, “SEEN” and “Jenna In Law,” as outlined at our last Annual General Meeting (AGM). Additionally, Pre-production for our first feature film, “Love Offside,” is currently underway, with production scheduled to commence in June 2024.

In line with our strategic objectives, we are actively engaging with international networks and digital streaming platforms to secure distribution opportunities for our content upon production completion. This proactive approach ensures that our creative endeavours have a suitable platform to reach global audiences.

For More Information CLICK HERE

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Maximum Participating Voting Share Capital Of Companies Listed On The Junior Stock Exchange Moving From JA$500 Million To JA$750 Million

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“Utilizing equity capital is an effective avenue to stimulate innovation and reduce operating costs thereby allowing companies to drive growth, improve productivity and increase their chances of sustainability. We commend the Government for this decision and encourage small and medium sized companies to take advantage of this opportunity.”

The Government of Jamaica through the Ministry of Finance and the Public Service has announced that they have increased the participating share capital limit from $500 million to $750 million for companies on the Junior Market of the Jamaica Stock Exchange.

“This is very exciting news for the Exchange,” commented Dr. Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange. “This is an exceptionally good move by the Government as this will allow small and medium sized companies to come to market to raise additional capital for business expansion and assist new companies to raise capital and to consider this capital raising option as viable. She stated that “Utilizing equity capital is an effective avenue to stimulate innovation and reduce operating costs thereby allowing companies to drive growth, improve productivity and increase their chances of sustainability. We commend the Government for this decision and encourage small and medium sized companies to take advantage of this opportunity.”

The Junior Market was established in 2009 to allow small and medium sized companies (SMEs) to raise a maximum of $500 million dollars during an initial public offering (IPO). The Government’s new initiative towards companies listed on the Junior Market now allows them to raise up to $750 million dollars, an increase of $250 million dollars.

Source Jamaica Stock Exchange

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A.S. BRYDEN Acquires Control Of Stansfeld Scott In Barbados

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A.S. Bryden & Sons Holdings Limited (“A.S. Bryden”) today announced that it has acquired a 55% controlling stake in Stansfeld Scott (Barbados) Limited (“SSB”).

SSB is a leading distributor and retailer of wines, spirits and consumer health products in Barbados. SSB’s products include El Dorado and Plantation rums, Glenfiddich whisky, Stolichnaya vodka, Banrock Station and Lamothe Parrot wines, Twining’s teas, Haliborange vitamins and Endura Malt. In addition to its distribution business, SSB operates six Wine World branded retail stores across Barbados.

P.B. Scott, Chairman of A.S. Bryden

The transaction will allow A.S. Bryden to expand its premium beverage business outside of Trinidad for the first time. Brian Cabral, the outgoing Chairman of SSB, will retain an ownership interest in the Company following the transaction and will remain a director. Stansfeld Scott International, a master distributor of wines and spirits across the Caribbean and Central America which is also owned by Mr. Cabral and his partners,

Jayshree Kessaram and Indra Cabral will not be impacted by this transaction.

In speaking about this development, P.B. Scott, Chairman of A.S. Bryden said, “Brian Cabral, his family and his team have spent decades carefully building Stansfeld Scott into the highest quality wines and spirits distributor and retailer in Barbados. We look forward to joining forces and using A.S. Bryden’s resources to serve Stansfeld Scott’s employees, customers and its principals.”

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