DAAR Communications Plc, owner of AIT and other business interests, has posted an operating loss of N2.139 billion in 2016, up from N1.515bn in 2015.
The chairman of the company, Chief Raymond Dokpesi Jnr, stated this at the combined 2015 and 2016 annual general meeting of the company held in Abuja. He attributed the loss to the recession Nigeria is currently struggling to come out of.
According to him, “The adverse business environment together with the biting economic recession caused the 2016 turnover of the company to plummet to an all time low of N3.733 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,” he said.
Mr. Dokpesi Jnr, however assured shareholders that there was bright hope of returning the company to profitability in the coming years following a conscious business restructuring and operations digitalisation and expansion initiative project which is at its final implementation stage.
He said, as part of the initiatives, DAAR Communications has successfully resolved all her pending litigation matters in several courts arising from the last general elections in Nigeria in 2015 and in the process saved a lot of funds in litigation fees as some were settled out of court or struck out for want of evidence.