Impact of Covid 19 on Media Sustainability

https://zimbabwe.misa.org

Another source of information about the financial
performance of news media is a listing on a
stock exchange. In South Africa, the only print
group that remains listed on the JSE is Caxton,
which publishes freesheets around the country
and regional newspaper The Citizen. Caxton’s
financial year-end was June, so it encompassed
the lockdown period in South Africa. Caxton’s
publishing, printing and distribution business
figure, after depreciation and amortisation, was
down around R100-million or 186% compared
to the previous financial year. Its packaging
business was also hit.

the biggest in the country, Media24, a subsidiary
of JSE-listed SA-based multinational Naspers,
does publish financial statements and annual
reports

Revenues declined by R748.5 million or 11.8%
to R5 572.4 million which has had a significant
impact on profits. This decline can be attributed
to the impact of the lockdown in the 4th quarter,
given that from a turnover point of view, the
Group was trading at similar levels to the prior
year, pre-lockdown. The lockdown significantly
impacted all our businesses, with the major
impacts being felt in our newspaper business
where advertising revenues dried up, the
commercial printing operations were impacted
by no publication or advertising insert printing
work and the packaging divisions that service
the fast food, cigarette and alcohol markets were
also severely affected by the bans on trade in
these sectors.73
Two of the big Print media companies, Arena
Holdings and Independent Media, are unlisted
and under no obligation to divulge company
information. The remaining media company,

Media24 also has a year end on March 31, five
days after the extended, strict South African
lockdown came into effect and which was to last
the whole of April. It boasted an operating loss
of around R222- million for the year ended 2020,
almost 40% less than the loss for the previous
year, but a loss nonetheless – and this was before
the punishing lockdown.
ZimPapers’ half-year results announcement to
end-June 2020 tells of the company migrating
some newspapers online “to conserve imported
newsprint in the face of uncertainty in the
movement of this critical raw material across
the borders.” Another way of looking at this
is that the company is conserving the brands
and avoiding the embarrassment of shutting
titles. The company seems to indicate these are
now permanently online, but nothing stops the
return to a print edition, unlike simply shutting
down the titles. Moving titles online as a way
of retaining some part of the business has been
common in the region. The company’s results
(examined in the accompanying case study) were
dragged down by the newspaper division which
had an operating loss of around ZWL$11 million,
while its revenue comprised 58% of total revenue.
In other words, the biggest earner of revenue lost
money, and company profits were saved mainly
by the commercial printing division.

73. SENS, “CAXTON & CTP Publishers and Printers Reviewed Provisional Results for the Year Ended 30 June 2020.”

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