DAAR Communications Plc, has declared an operating loss of N2.139 billion in 2016, up from N1.515 billion in 2015.
The Chairman of DAAR Group, Chief Raymond Dokpesi (Jr.) told shareholders at the weekend in Abuja at a combined 2015/2016 annual general meeting that the economic recession in the country pushed the company’s operating loss from N1.515 billion in 2015 to a new height of N 2.139 billion.
“The adverse business environment together with the biting economic recession caused the 2016 turnover of the company to plummet to an all time low if N 3.733 billion representing 47 per cent decline over 2015 earnings.
“The loss after taxation in 2016 was N2.139 while in 2015 loss after taxation was N1.515 billion. As encapsulated earlier, the losses were as a result of the astronomical increase in cost of operations occasioned by the economic recession and the severe devaluation of the naira which could not be matched with corresponding growth in earnings as the advert budget in the industry declined in the ensuing period,” Dokpesi Jr said.
The DAAR Group Chairman however assured shareholders that there was a serious hope of the company returning to profitability in the nearest future following a conscious business restructuring and operations digitalisation and expansion project already at its final implementation stage.
As part of the initiatives, he stated that DAAR Communications had successfully resolved all litigation matters in several courts emanating from the 2015 general election, adding that in the process a lot of funds was saved in litigation fees as some were settled out of court or struck out for want of evidence.
