For the nine months ended September 30, 2011, One Caribbean Media Limited (OCM) reported Earnings per Share of $0.73, a 2.8 per cent increase from the $0.71 reported in the comparative 2010 period.
OCM’s Revenue fell by 3.9 per cent year-on-year to $334.0M. In FY 2010 the Group would have benefited from enhanced revenue brought on by increased advertising stemming from the Local General Elections and this would not have replicated in FY 2011. Cost of Sales declined one per cent to $222.2M. The Gross Profit of OCM was down 9.2 per cent year-on year to $111.8M. The Gross Profit margin was down to 33.5 per cent for the nine months.
Administrative Expenses decreased by 23.6 per cent year-on-year to $46.4M, while Marketing Expenses was up to $2.7M from the $1.8M reported last year. Overall, expenses were down 21.7 per cent year-on-year, which lead to a year on year improvement in the Operating Profit Margin from 17.4 per cent to 18.8 per cent.
Profit before Tax increased by 6.1 per cent. Taxation for the period was up 11.5 per cent resulting in a 4.1 per cent gain in the Profits after Tax.
OCM continues to initiate strategies to improve its competitiveness and increase market share in this highly competitive environment. For instance, the recent launch of the Caribbean Super Station in Barbados. In fact, in a recent newspaper report the Group’s Chairman indicated that independent surveys in its major markets demonstrated that the Group continues to grow and increase its audience and readers in broadcast and print media. If OCM continues to deliver and maintain a strong market share then this encourages advertisers to use the different media channels. In all, this can contribute positively to the Group’s top line. However, in the Caribbean where economic growth is weak, revenue growth will be challenged. Improved efficiencies would be key to maintaining current levels of profitability.
In the final quarter, OCM should deliver a strong performance as it’s customary that the Group would benefit from increase advertising stemming from the various festive seasons. OCM’s revenue is usually favours the second half of the year. (Trinidad Express)
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