DAAR Communications, owners of RAYPOWER FM, AIT, and DAARsat, yesterday announced a turnover of N4.825 billion in its 2010 operations.
This is even as the company also disclosed that the federal government was yet to pay the outstanding debt owed it for the services rendered on the FIFA U-17 World Cup which was hosted by Nigeria in October 2009.
According to the Chairman of the company, High Chief Raymond Dokpesi, while speaking at the company’s 3rd Annual General Meeting (AGM) held at its corporate head office in Abuja, the non-payment of the debt led to the losses recorded by the company in its 2010 operations.
He said: “In 2010, interest and similar charges amounted to N1.953 billion representing 81 per cent of the gross profit for the year. This figure is therefore responsible for the loss recorded in the year under review.
“Although efforts were made to service the loan from the company’s operations, the non-payment of the outstanding debts owed by the federal government on the FIFA U-17 World cup, the project for which the loan was granted, exacerbated the position.”
While informing that President Goodluck Jonathan’s has approved the payment of the debt, Dokpesi noted that on receipt of the money, the company would immediately commence repayment negotiation with Fidelity bank, from where it obtained loan for the service and pursue resolution of the ongoing litigation with the bank.
A breakdown of the company’s records in 2010 shows a turnover of N4,824,964 as against N7,359,878 recorded in 2009 and a gross profit of N2,407,006 as against N4,324,109 in the previous year.
Furthermore, exceptional item was nill compared to N3,405,998 recorded in 2009 with the overall result showing a loss of N1.6 billion as against N2.626 billion recorded in 2009.
Dokpesi who assured the shareholders of a profit regime from 2013 onwrads, explained that despite the infrastructural challenge such as unstable exchange rate, inflationary impact, security challenges and unstable power supply which characterised the business environment in 2010, the company was able to reduce its losses, an indication that the operational strategies adopted in 2010 yielded positive results.?