Radio Jamaica Limited posted strong third-quarter profits to December 31, which at $72.8 million more than doubled the out-turn in the comparative 2005 period, on stronger revenues and slimmed cost of sales.

The media company said its improved turnover for the quarter, which was up 6.4 per cent to $379.7 million, was seasonal.

The profit outturn resulted in a 3Q net profit margin of 19 per cent, almost double the profitability ratio of 10 per cent compared to the 2005 period when RJR carved net income of $34.9 million from revenues of $356.9 million.

The media group's nine-month earnings were not as rosy. A $100 million increase in sales was eroded by increased cost of landing the business, heavier operational expenses and heavier losses by associate companies - GV Media Group in which it has 20 per cent ownership, and One Caribbean Media (OCM) which owns media companies in Barbados and Trinidad.

However, a turnaround of the Trinidad stock market in the third quarter resulted in a $1.4 million gain on OCM shares, said RJR in its statement to shareholders, while the reorganisation of GV Media has begun to reap dividends "as reflected in our $1.6 million portion of the profits earned".

17 per cent decline

Profits for the nine-month period April 1 - December 31, declined 17 per cent from $88.8 million in the 2005 period to $73.8 million. Earnings per share were down from 25 cents to 21 cents. Its profit margin, calculated on revenues of $1.1 billion, was seven per cent.

Equity in the media company increased to $1.18 billion, partially as a result of its acquisitions of cable stations RETV (65 per cent) and JNN (80 per cent), as did thevalue of the company's fixed and other long term assets.

The purchases, valued at US$1.75 million (approximately $117 million), were done through an RJR subsidiary based in St Lucia, Media Plus Limited.

Overall, RJR's balance sheet was $200 million heavier at $1.36 billion, compared to the company's position in December 2005. The additions include intangible assets of $125.5 million, the composition of which RJR did not specify, noting only that it covered goodwill (the difference between the fair value of acquisitions and their current market value).

"Determination of the fair market value of the various intangible assets is currently being undertaken and will be recorded in the March 2007 yearend financial statements," said a note to the accounts.

business@gleanerjm.com

Radio Jamaica9-month results

Symbol	RJR
Net Profit Margin	6.9%
Gross Profit Margin	61.3%
Operating
Profit Margin	11.6%
EPS	20.97 cents
Share Price	$4.60
PE Ratio	21.9
Current Ratio	2.89
Return on Assets	4.9% But nine-month earnings depressed