Wednesday, February 21, 2018

$115m profit for OCM


AGM CHAT: One Caribbean Media (OCM) chief financial officer John Lum Young, left, speaks to Group chairman Sir Fred Gollop QC during yesterday’s annual general meeting at Express House Training Room, Independence Square, Port of Spain. —Photo: ISHMAEL SALANDY

Mark Fraser

For another consecutive year, One Caribbean Media Ltd’s (OCM) profit margins have remained healthy, with the Group’s 2013 revenues increasing by 12 per cent.

The company’s $115 million before-tax profit was announced at its 46th annual general meeting (AGM) at Express House in Port of Spain yesterday.

The report from OCM chairman Sir Fred Gollop stated: “The Group’s revenues in 2013 increased by 12 per cent from $495 million (US$76.7 million) in 2012 to $552 million (US$85.5 million) in 2013. Profit before tax of $115 million (US$17.8 million) was 15 per cent above the $100.4 million (US$15.6 million) achieved in 2012.”

OCM is the parent company of Caribbean Communications Network (CCN), which operates TV6 and publishes the Trinidad Express.

OCM’s chief financial officer and company secretary, John Lum Young, who went through the balance sheets, for the benefit of the shareholders at the AGM, looked at the increase in the profits across the board and said the Group was growing in a healthy direction.

“Our revenue line would have increased and our cash would have gone up. Revenues would have grown in terms of advertisement revenues in 2013.

“In addition, we had four elections in 2013. Our administrative expenses would have taken an increase. Out of that $20 million about $6 million would have been salary increments but we still maintain our operating profit margins,” he said.

Lum Young told the shareholders that, in 2011, the size of the profits contributed by newspapers was huge but part of the Group’s strategy was also to continue growing other media.

He said the 2013 results showed other areas of business growing.

This includes a small digital company that was purchased recently by the OCM Group.

In her presentation, Group chief executive Dawn Thomas looked at OCM’s expansion and how management has been strategically moving to maintain OCM’s market share through training at various levels of management, upgrades of technology within the company as well as the development of several mobile apps.

“One of our goals is achieving operational excellence. That is extremely important for us as an organisation and to be able to do so one of the strategies that we have employed is investments in technology and upgrades of our existing systems. We have made significant investments in both the print and the broadcast media platforms. We hope that these systems would improve our work process efficiencies cost efficiencies additionally we expect in some cases we are actually going to improve the quality of the production output and that is extremely important. We as a media group need to focus and develop our digital media assets.”

She added: “I am sure that you would have seen that we acquired a small digital media company. We feel very strongly that this particular company, given the functionality will provide us with a very good platform to generate money,” she said.

Lum Young and Thomas said they could not name the company yet, explaining that it could impact on the success of the recently acquired asset if competitors were to find out.