Daar Communications, owners of the African Independent Television (AIT) and Ray Power FM, has announced a N2.139 billion loss for the 2016 financial year.
Chairman of the company, Chief Raymond Dokpesi, Jnr., at the weekend in Abuja told shareholders at the combined 2015 and 2016 yearly meeting that as a result of recession in Nigeria, the company’s operating loss grew from N1.515 billion in 2015 to a new height of N2.139 billion.
He said: “The adverse business environment together with the biting economic recession caused the 2016 turnover of the Company to plummet to an all-time low if N 3.733 billion representing 47 per cent decline over 2015 earnings.
“The loss after taxation in 2016 was N2.139 while in 2015 loss after taxation was N1.515 billion. As encapsulated earlier, the losses were as a result of the astronomical increase in cost of operations occasioned by the economic recession and the severe devaluation of the Naira which could not be matched with corresponding growth in earnings as the advert budget in the industry declined in the ensuing period.”
Dokpesi however assured shareholders that they was a bright hope of returning the Company to profitability in the coming years following a conscious business restructuring and operations digitalisation and expansion initiative project which is at its final implementation stage.
He reported that already, as part of the initiatives, DAAR Communications has successfully resolved all her pending litigation matters in several courts arising from the last general election in Nigeria in 2015 and in the process saved a lot of funds in litigation fees as some were settled out of court or struck out for want of evidence.
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