After a difficult two-year performance due to high expenses and a drop in business demand, Radio Jamaica Limited saw a significant uptick in profitability as its consolidated net profit jumped from $1.5 million to $110.45 million for the quarter ending June 30, 2021.

This was largely influenced by the hosting of the popular ISSA/GraceKennedy Boys’ and Girls’ Championships (Champs) in May which positively affected the print and online division, audio and audio visual segments.

Revenue for the quarter rose by 34 per cent to $1.42 billion as the print division brought in $174 million for the period. Audio and audiovisual brought in the remaining revenue increase of $185 million.

As a result of hosting Champs, direct expenses rose by 28 per cent to $493.96 million which was compared to a period where the event was cancelled. With a moderate increase in expenses, the group’s operating income rallied from $12.52 million to a record $159.88 million. This was largely due to the continued success of the audio visual division which recorded a 46 per cent jump to $106.9 million. This was also the first quarter that the print division recorded an operating profit since December 2020 which was the last period before the novel coronavirus pandemic hit Jamaica’s shores.

Earnings per share for the quarter was at $0.046 compared to the $0.001 in the prior period.

Total assets was six per cent higher at $4.73 billion relative to its March 2021 financial year (FY) which was driven by an 11 per cent increase in its current assets. Its investments in associates Jamaica Holding, LLC (Gustazos) and Sifi Studios Jamaica Limited (Keez) saw a further reduction to $121.6 million as they experienced continued losses in the period. Total liabilities grew by 11 per cent to $2.1 billion while shareholders equity increased by four per cent to $2.63 billion. Radio Jamaica reduced its debt in the quarter by $111.89 million after picking up financing during the 2021 FY to navigate the drop in business demand.

Due to the minister with responsibility approving their maximum share capital limit to 21 per cent, Radio Jamaica is now clear to request permission from shareholders at its upcoming annual general meeting to hold an equity raise. The company has 1.21 billion unissued shares which will support the company’s digital switchover and transformation with analogue set to be switched off in January 2023. Radio Jamaica’s stock price has risen by 131 per cent for the quarter to $3.81 after the release of its full year and first quarter results in July.