Home' Trinidad and Tobago Guardian : May 9th 2013 Contents Guardian Media Ltd:
One Caribbean Media Ltd:
Though still just below its peak of $512.6 million
achieved in 2008, One Caribbean Media Ltd delivered
revenues of $494.6 million for fiscal 2012. This result
was a healthy improvement of 9.8 per cent over the
$450.6 million recorded for 2011. More importantly,
gross profit expanded by a healthy 14.5 per cent to
reach $177.6 million from the $155.1 million earned
Administrative expenses grew by 18.4 per cent to
$73.8 million from 2011 s $62.3 million. In addition,
marketing expenses rose to $4.13 million from 2011 s
$3.68 million, or by 12.1 per cent. These changes saw
operating profit improve by more than $10.6 million
or from $89.1 million in 2011 to $99.7 million last
year; this reflects a margin increase of 11.9 per cent.
These results reflect the much improved contri-
butions from the Trinidad-based operations. During
2012, OCM acquired Citadel Group for $50.4 million;
this company added three radio frequencies to its
arsenal of media platforms. Also acquired during
2012 was Sidewalk Radio Ltd, which facilitates the
broadcast of Caribbean Super Station (CSS) in T&T.
The cost for Sidewalk was $3.3 million. OCM also
paid $24.1 million to buy VL Ltd, which is a wholesale
distributor of appliances.
OCM s Trinidad operations delivered revenues of
$325.8 million (2011: $275.7 million) and operating
profits of $75.1 million (2011: $64.7 million). The Bar-
bados operations were more challenged. They pro-
duced lower revenue, but delivered an almost equal
MAY 2013 • WEEK TWO www.guardian.co.tt BUSINESS GUARDIAN
STOCKS | BG15
2012 results for GML, OCM and AMBL
This week, we highlight the results of two media companies
and a non-bank financial institution, which all have a
level of profit. In financial terms, the
Barbados units saw revenues in 2012
of $168.9 million (2011: $174.9 million)
and operating profit of $24.6 million
(2011: $24.5 million).
Resulting from the 2012 acquisitions,
OCM s intangible assets increased to
almost $62 million from only $315k in
2011. Other assets showing a notable
increase was plant, property and equip-
ment. This line item increased to $255.1
million from $242.9 million in 2011.
The deferred programming balance rose
from $19.2 million in 2011 to $31.3 mil-
lion last year.
A notable asset, which declined in
value, was cash and cash equivalents.
This balance fell to $150 million from
2011 s figure of $194.3 million. No
doubt, acquisition costs, which con-
sumed more than $71 million, were
largely responsible for this decline.
In aggregate, the company saw its
assets grow to $731.1 million from the
$661.4 million it held as at December
2011; this represents an increase of 10
per cent. Of this total, $604.9 million
or 82.7 per cent is represented by equi-
ty.Overall, OCM achieved earnings per
share (inclusive of employee share own-
ership plan shares) of $1.11 for 2012;
this reflected an improvement of 6 cents
per share over the $1.05 delivered for
2011. On the basis of this improved
performance, the directors approved
total dividends of $0.70, which was 2
cents more than the $0.68 paid for
In the first quarter of 2013, OCM
delivered very strong increases in rev-
enue, profits and earnings per share.
These healthy results were largely driven
by one-off events relating to the Tobago
House of Assembly election and Bar-
bados general election.
Revenues rose to $124 million from
$100.5 million in the comparative quar-
ter in 2012. Meanwhile, gross profit
increased by 46.6 per cent to reach
$44.1 million from last period s $30.1
million. In a similar vein, profit from
continuing operations expanded from
its 2012 base of $12.8 million to reach
$18.1 million, reflecting an improvement
of 41.3 per cent.
These changes saw earnings per share
(inclusive of ESOP shares) climb by a
robust 52.6 per cent to $0.27 from last
period s $0.19.
On a sobering note, currency trans-
lations differences of $1.25 million com-
bined with unrecognised actuarial losses
of $5 million pulled down its compre-
hensive profit to a more modest $11.9
million; this compares with the $12.7
million reported for the January to
March period in 2012.
Looking forward on the local scene,
we are likely to see increased media
spending in the last two quarters of
this year. This is because at least one
by-election and the local government
elections are likely to be held within
that timeframe. These expressions of
democracy would benefit all media
ANSA Merchant Bank Ltd:
The assets of ANSA Merchant Bank
Ltd grew by 1.5 per cent to reach $5.53
billion as at the end of 2012; in 2011,
this balance was $5.45 billion. Even
with this modest increase in total assets,
shareholders equity rose by 5.5 per cent
to close at $1.53 billion at the end of
2012; this is an improvement over the
figure of $1.45 billion at year-end 2011.
At December 2012, equity represented
27.6 per cent of AMBL s total assets.
Both total income and total expenses
rose in the 2012 period. Income
increased by 13.5 per cent to reach $747.2
million from last period s $658.6 million.
Total expenses rose disproportionately
by a factor of almost 30 per cent to
end at $557.3 million from $428.9 mil-
lion recorded for 2011. The increase in
expenses was attributable to increased
provisions in both the company s
investment and lending portfolios.
These increased provisions resulted
in the company recording a profit
attributable to shareholders of $149.6
million versus the $183.6 million earned
for 2011. This translated into earnings
per share figure of $1.75 (2011: $2.18).
The dividend payment of $0.85 was
stable for both 2011 and 2012.
Let us look at how the various profit
centres did for the relevant periods.
The general insurance unit of TATIL
had the distinction of being the only
division to record a year-on-year
improvement in profit. In 2011, this
division contributed $69.7 million while,
for 2012, this figure rose by a strong
25.4 per cent to $87.4 million.
As the sale and prices of new cars
rose, this division would have benefited
from higher first-year premiums and
a lower incidence of claims. With only
14 per cent of the group s assets, TATIL
General contributed 46 per cent to the
group s pre-tax profit.
Even though TATIL Life recorded a
24.5 per cent revenue improvement to
$207.4 million, pre-tax profit contracted
by almost $7 million to end at $20.3
million; in 2011, this figure was $27.3
The banking division would have
suffered from increased provisions relat-
ing to its lending activities. In terms of
revenue, this is the largest division.
This unit s operating income rose to
$296.4 million from 2011 s $272.3 mil-
lion, or by 8.9 per cent. Profit, on the
other hand, fell by almost 22 per cent
to $117.9 million from $151 million in
the previous period. This segment has
identifiable assets of $2.76 billion,
accounting for almost 50 per cent of
total group assets.
Bringing up the rear was the mutual
funds section, which saw it pre-tax
profit slip from a paper-thin result of
only $562k in 2011 to a loss of $12.5
million last year. No doubt, much of
this loss was related to higher provi-
sioning on investment assets referred
to in the chairman s report.
On March 27, 2013, it was announced
that AMBL agreed to buy the Barba-
dos-based Consolidated Finance Com-
pany Ltd for Bds$53 million.
When all regulatory approvals have
been received, this new acquisition
would begin to positively impact
AMBL s profits.
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