RJR Communications Group

Radio Jamaica Limited is reporting a $23 million after tax profit for the three month period ended September 30.

This was a significant improvement over the $13 million loss suffered during the corresponding period last year.

The 24 per cent increase in revenue which amounted to $412 million was due in part to political advertising leading up to the September 3 General Election.

This enabled the Group to realize an 11 per cent operating profit margin which exceeded the one per cent margin recorded for the previous year, despite a $36 million increase in expenses.

However, RJR says election advertising was not incremental as advertisers had scaled down campaigns and launching of new products during the period of campaigning and recovery from Hurricane Dean.

The increase in expenses recorded in the second quarter were driven mainly by higher insurance costs, increased commissions on advertising and expenses associated with the two newly acquired cable subsidiaries.

Additional expenses were also incurred for equipment maintenance and fuel costs associated with election coverage and rehabilitation following the passage of Hurricane Dean.