Shareholders in One Caribbean Media are to be denied a dividend as the Eastern Caribbean’s largest media group, which owns the Nation Newspaper and Starcom Network, blames the COVID-19 pandemic for biting deep into its earnings.
OCM’s Board of Directors informed shareholders for the second consecutive period that it will not be paying them a dividend on their investment in its consolidated half-year unaudited report.
One Caribbean Media (OCM) reported $1.82 million (US$ 913,000) in after-tax losses up to June 30. The dismal performance comes months after the directors took a decision not to pay a final dividend to shareholders.
Chairman Faarees Hosein told shareholders in a statement accompanying the financials: “The continuation of measures in the second quarter to control and contain the spread of COVID-19, as was anticipated, had a significant impact on revenues.
“At the half year, revenues of US$20.8 million ($41.6 million) represented a decline of 20 per cent from the comparative period in 2019.”
The OCM chairman said the media group’s “strong first quarter performance was eroded by the material decline in the second quarter as a result of the impact of the lockdown”.
He added: “The gradual reopening of some of the economies in which the Group operates towards the end of the second quarter showed a slight increase in business activity but our customers understandably are taking a very cautious and measured approach to spending.”
Hosein advised shareholders of the Port-of-Spain-based company which is listed on the Barbados and Trinidad and Tobago Stock Exchanges: “The progress of the virus and the potential impact on our operations are being closely monitored by our teams who remain focused and committed to quality services and delivery and to the health and safety of our stakeholders.”
He added: “Given the current situation and the resulting uncertainties, the Board has not declared an interim dividend.”
