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Afromedia’s profit drops by 22%


Afromedia Plc has announced a profit after tax of N340.79m for the year ended September 30, 2009, representing a decline of 22 per cent or N97.73m from N438.52m recorded in 2008.

According to the report released at the company‘s Annual General Meeting, held in Lagos last week, pre-tax profit also fell by 38 per cent or N207.82m to N338.44m as against N546.26m in the same comparable year of 2008.

However, company’s increased by 22.5 per cent or N440.59 from N1.96bn recorded in 2008 to N2.40 in 2009. The company’s chairman, Dr. Onaolapo Soleye, said the company‘s margins were impacted negatively by pressure from advertisers for lower prices at a time when the Lagos State Signage and Advertising agency was driving a significant increase in the operating cost.

He added that, ”Management has assured improving margins as market conditions get better and also due to its renewed focus on margins. Speaking on the future prospects of the company, Soleye said, ”the industry remains challenging in the face of the global financial and economic crisis, stiff competition and intense regulatory demands in our domestic operating environment. Our company is, however, committed to the strategic expansion of its business for improved performance in the long term, and will continue to invest in strategic business throughout the country and beyond.”


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