Guardian Media Ltd (GML) has recorded a major decline in its profits for 2022 even though it saw a 12.5 per cent increase in its revenue.
The media company’s profit before tax fell by 40 per cent from $6.5 million in 2021 to $3.9 million last year.
In his report to shareholders published yesterday, the company’s chairman Peter Clarke blamed the decline in profits on increased spending at the company.
He said, “For the year ending 31 December 2022, Guardian Media Ltd reported a profit before taxation of $3.9 million compared to $6.5 million profit before taxation in the prior year. Revenues reported for the year $117.8 million ($104.7 million-2021) reflecting an increase of 13 million or 12.5 per cent in advertising revenue. Operating expenses increased year over year due to our efforts to stimulate commercial interest, and in order to fund growth strategies across all business segments.”
The company, which owns the Trinidad Guardian, CNC3, and a number of radio stations, was able to turn around its position from a loss of $6.5 million in the third quarter of last year to a profit of $3.9 million by the end of 2022.
Clarke said the turnaround was due to the advertising revenue earned from the 2022 World Cup.
Its profit before tax for the fourth quarter last year was $10.3 million, just down from the $11.5 million turnaround it saw in the fourth quarter of 2021.
A closer look at the accounts shows that the print segment just about broke even with a profit before tax of $117,000 last year compared to $303,000 in 2021.
GML’s multi-media segment, which includes its TV, radio, and digital offerings, had a combined profit of $3.766 million in 2022 when compared to $6.236 million in 2021.
The accounts also show that significant cash came out of the business last year with a negative change in working capital of $14.355 million, leaving the company with one of its lowest cash balances in years of $17.051 million.
Clarke said in spite of the commercial challenges the company is resolute it is in a good position to face the future.