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Radio conglomerate Communications Fiji Ltd (CFM) expects to make just under $1 million in after tax profits at the end of its 2009 financial year, it revealed today.
Speaking to brokers at the South Pacific Stock Exchange where the company is listed, managing director William Parkinson said this would be driven by the performance of CFM’s Fiji business, and there are expectations that the Papua New Guinea business will also perform well.
“Our after tax profit for CFM for this year will be around $650,000 - that’s for the Fiji radio broadcast operation; PNG - we are expecting an after tax of F$300,000; 231 Waimanu Road, probably around $100,000, that’s consistently what they’ve contributed to our bottom line each year; and Unwired Fiji a net loss of $90,000. So all that adds up to an after tax net profit of just under the million dollar mark. Last year was $864,000, so I think that’s about a 10 percent or 11 percent growth on last year,” Parkison said of the company’s revenue sources.
CFM had only just released its 2008 annual report, where it recorded a bumper year, posting a group pre tax profit of $864,000 compared to $440,000 in 2007.
CFM chairman and local businessman Hari Punja stated in the report that the company had managed to deliver a six percent revenue growth despite tough economic times, a testimony of the strong brand name that CFM has built over the years.
Parkinson today gave further indications that this trend will continue, although performance is still being hamstrung by Unwired Fiji, an Internet Service Provider outfit that CFM had established four years ago but which has been a loss making venture.
CFM now owns 35 percent of Unwired Fiji and is a substantial shareholder along with a Papua New Guinea IT company called DataNets, which owns some 36 percent.
“Unwired has been a consistent variable. We have to watch that one, we are in a process of change with Unwired, there’s a lot of change going on. So we will see where we will go with that one. So if you would say what could affect our year end result, well it would be Unwired. But it would also obviously depend on stability within the markets but our markets are looking pretty good at the moment so we’re ticking all the boxes at the moment,” Parkinson said.
The CFM board is expected to meet next month to review third quarter results and to make an announcement regarding an interim dividend after that meeting.
It had paid out a total dividend of eight cents per share last year and Parkinson said the company hopes to maintain that rate this year.
CFM listed on SPSE in 2001 and last traded at $1.70 per share.
