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Radio conglomerate Communications Fiji Ltd has reported increased profits after tax of $342,457 for the first six months of its financial year, ended June 30 2009, compared to $238,748 for the same period last year.
CFM managing director William Parkinson attributed this to the company’s annual Showcase event being held a month earlier than the normal July schedule, which fell in the second half of the company’s financial year and which meant that comparing this year’s first half results with last year’s would be a little distorted.
Still, the group’s performance remained strong and while results were similar to 2008, Parkinson said retail advertising spend over Diwali and Christmas would be critical to the final results for this year.
In Papua New Guinea, CFM’s fully owned subsidiary PNG FM faced a challenging first six months.
“Advertising sales were a little disappointing but they are now climbing once again”, said Parkinson.“The high inflation rate is also pushing costs up and that is impacting on the bottom line.Profitability remains strong and I am expecting a much better second half of the year but they are unlikely to match last year’s record breaking performance”.
PNG FM, he added, had received notice that it will be required to vacate current studio facilities by July 31st 2010 so the company was looking for a new home and would use the opportunity to upgrade studio facilities, making provision for future growth.
Other major interest, Unwired Fiji, in which CFM is a 33 percent shareholder is said to have turned the corner, opening up another potential revenue stream for the radio company.
“We are dealing with the very latest in wireless internet technology and are delighted with early results,” Parkinson said of Unwired Fiji, which has now completed rollout of its 4G WiMax network in the Suva area.
“Included in the project was installation of improved back end management technology that provides measurement of data usage by customers. This allows us to change our billing structure from being speed based to usage, improving cost efficiency significantly. We believe that Unwired Fiji has turned the corner and we look forward to much improved financial performance in the coming months,” Parkinson added.
He is however reluctant to make any detailed forecasts as to an end of year results.
“We are working in a very volatile environment both globally and locally in Fiji and Papua New Guinea. On current trends we should come close to last year’s results (after tax profit $864,220.00) but we aren’t promising anything beyond keeping shareholders informed as the year progresses.”
The company has therefore deferred an interim dividend announcement but is expected to maintain an annual dividend of eight cents per share.
CFM last traded at $1.65 on the South Pacific Stock Exchange.
