Carnivals, entertainment to lead company growth

A regional media company is banking on the full return of carnivals, festivals and other entertainment events across the Caribbean to help boost earnings for the rest of its financial year.

This was among the disclosures made by Faarees Hosein, chairman of One Caribbean Media (OCM) which is headquartered in Trinidad and Tobago but with media and other interests in Barbados and the Eastern Caribbean, in the Chairman’s Statement that accompanied the recently released consolidated audited results for the year ended December 31, 2022.

Total group revenue for the year reached US$48.25 million (BDS $96.5 million), compared to US$45.24 million (BDS $90.48 million) for the 2021 period.

Hosein told shareholders and other stakeholders that the group achieved “strong growth” in its media and non-media portfolios with a seven per cent increase in revenue and a 22 per cent rise in profit before tax.

The upward trend in revenue and profits for the group is expected to continue for the rest of the year and the chairman outlined where OCM is expecting the boost.

“The gradual lifting of the COVID-19 restrictions regionally was a key factor in the performance improvement of our traditional media assets (newspapers, radio, television). This growth is expected to continue into 2023 with the radio segment, in particular, benefitting from the return of carnival celebrations and other major entertainment events.

“In light of media consumption trends, management continued its keen focus on its digital platforms which has resulted in significant revenue growth over the last two years,” Hosein disclosed.

Meanwhile, the OCM chairman revealed the group had secured the television rights to the Caribbean Premier League (CPL) for Trinidad and Tobago and Grenada for the 2023-2025 period. In addition, it now owned the regional radio rights for the T20 tournament for 2023 and 2024.

“The Group’s ongoing diversification strategy has been progressing well and is impacting positively on the financial performance. Our packaging plant (Flexipac) that was formally commissioned in late 2019, was able to deliver revenue growth of 35 per cent and make a profit contribution,” he said.

Hosein pointed out that this performance was achieved despite the “serious supply chain challenges” that caused “substantial increases in raw material and logistic costs”.

“The initiatives that have been taken to improve operational efficiencies along with the expanding customer base will position the plant for continued growth,” the OCM official said.

He noted that at the end of 2022, the OCM group had installed solar investments in Barbados with a 1 MW solar farm commissioned in December 2022.

The chairman added: “These solar installations have been delivering on the projected returns and as such, approvals are being sought for a further investment in solar farms with an installed capacity of 3 MW. Innogen, our renewable energy company, had a successful year with a number of residential and commercial solar installations. The other non-media investments in real estate, technology and Internet services made a useful profit contribution and further opportunities are being pursued to ensure sustainability and growth of these business segments.” (IMC1)