DAAR reels out expansion plans, moves to tackle inflationary pressures
By Zion Rufus
Following the conclusion of its 14th AGM and presentation of Reports and Accounts, Nigerian broadcasting organisation, DAAR Communications has reeled out plans for expansion in a bid to reposition the company for cost effective management, increased viewership, listenership, and adequate rating for increased revenue generation.
The proposed expansion plans, which also features strategic moves to tackle the “suffocating” costs of operating multiple stations across the country, includes: retaining only stations with proven economic market viability for full broadcast transmission; optimising its audiences and revenue potentials through vigorous investments in contents and technology while exploring new business ventures that will substantially improve our bottom line; and the post digitisation plan which includes, continuous investment in high-end contents, full integration and automation of our operations with the most robust broadcast management systems, staff capacity development and training and deployment enterprise resource planning software to enhance operational efficiency.
Commenting on the approved growth trajectory, Chairman, DAAR Communications, Raymond Dokpesi Jnr revealed that the company intends to pursue these “lofty” measures in the years ahead so that it can be returned to profitability and the much awaited returns on investment in the company can be assured.
He said: “I am glad that the high-end content production agreements entered into in the previous year as well as new business strategies deployed in the operations of the company are beginning to yield the desired fruit as manifested in our margin this financial year. The Board places on record the circumstances that confronted the company which had threatened its corporate survival and we applaud the management and staff for the role they have played including the creative strategies employed to confront some of its strangulating financial commitments as well as sacrifices they have made to mitigate these pains and challenges.”
During the year under review, the gross earnings of the company was N4.81billion (N3.55billion in 2020) representing 35% increase in earnings. The reported trading loss after taxation for the year was N0.733billion (N2.31billion in 2020) representing 69% decrease.
Raymond pointed: “Although the financial result represents an improvement over the past years arising from the impact of the operational strategies put in place, I sincerely regret our inability to return the company to profitability as earlier promised. We shall continue to re-evaluate the viability of our business models and measure the quality of the decisions so as to eliminate waste and inefficiency whilst positioning the operations to take advantage of emerging opportunities more effectively and profitably. We believe that the adoption of enterprise risk management strategy and policy in the operations of the company will redefine our approach to the business and realign our strategies to be conscious of risks confronting the business and designing appropriate risk mitigation plans.”
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