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DAAR Communications adoption of operational strategies drop debt position to N1.6 bn

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Image: DAAR Communications Logo




DAAR Communications, the owners of Africa Independent Television (AIT) and Ray Power FM on Friday announced a N1.6 billion loss for its 2010 financial year.

The drop however showed a significant improvement in the company’s debt position which dropped by N1.058 billion from N2.626 billion in 2009.

Meanwhile, the Company’s financial report indicated a turnover of N4,824,964 billion in 2010, a drop from N7,359,878,000 in 2009.

Gross Profit also dropped from N4,324,109,000 in 2009 to N2,407,006,000 in 2010 and some N1,908, 385,000 was recorded as loss before tax.

Raymond Dokpesi, Chairman, DAAR Communications, made this revelation at the Company’s Annual General Meeting (AGM) that the difference of N1.058 billion drop within one year was a reflection of operational strategies adopted by the company in 2010 which according to him, yielded positive results and should be sustained.

As a result of the loss recorded during the year, no dividend was declared at the AGM ,although the shareholders were hopeful that the re-elected board of Directors will deliver better financial results going forward.

In a statement to the shareholders, Dokpesi said the company’s loss position in 2010 was majorly due to some N1.953 billion interest and similar charges paid within the year which accounted for 81 percent of the gross profit.

He further observed that eventhough the there were efforts to service the loan from the company’s operations, the non-payment of the outstanding debts owed the company by the federal government on the FIFA U-17 World cup, which is project for which the loan was to taken, worsened the debt situation.

But also promised to return the company to profitability next year and specifically announced plans to declare up to N1 billion dividend by 2013.

Dokpesi also disclosed that President Jonathan has approved the payment of the federal government debt to the company and announced that efforts have reached advanced stage for the collection.

He assured the shareholders that DAAR Communications will upon receipt of the billion naira money, negotiate the repayment of the loan borrowed from Fidelity Bank Plc for the 2009 FIFA U-17 World Cup and pursue the subsequent resolution of the ongoing litigation with the bank.

Dokpesi further announced that the company’s plans to expand beyond terrestrial transmission to additional twelve locations in the country as part of the process of making AIT and Raypower’s signals available to every Nigerian has commenced.

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Updated 8 Years ago

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Tags:     DAAR Communications     Africa Independent Television (AIT)     Ray Power FM