DAAR Communications Plc has recorded an increase of 38 percent in its nine months profit after tax for the period ended September 30, 2023 as its profit after tax (PAT) rose to N700 million, as against the N508 million that was generated in the similar period of the previous year.
DAAR Communications Plc is a Nigeria-based media and entertainment company which is engaged in the development, production, and marketing of entertainment news and information to a global audience.
Based on the notice it sent to the Nigerian Exchange Group (NGX), revenue generated for the nine months period saw a decline of 2% to N3.1 billion in contrast to the N3.2 billion that was generated from operations in the similar period of 2022.
Meanwhile, the decline in revenue does not seem to affect the increase in the cost of sales as the cost of sales for the period increased by 3 percent to N2.2 billion when compared to the N2.1 billion that was spent for the operation in a similar period of the previous year.
Gross profit is the financial gain of a company after deduction of the costs necessary to manufacture and distribute its goods or services, although it does not amount to its total profit or gain.
Consequently, decline in the revenue and increase in cost of sales resulted in a decrease in its gross profit. The gross profit for the period decreased by 13% to N939 million as against the N1 billion that was realised in the same period in 2022.
Television generating N2.9 billion and radio generating N275 million.
Compared to previous years as reported on NGX, the company has not achieved so much in its asset acquisition, as it reduces every year down to this period. In its non-current assets which include property, plant and equipment, asset value stood at N6.9 billion; other intangible assets which amounted to N23 million; investment-MTS which amounted to N97 million; and deferred tax asset amounting to N1.8 billion and in total all the assets amounted to N8.9 billion.
Its current assets which include trade receivables amounted to N2.9 billion; other debtors and prepayment, N250 million; cash and cash equivalent worth N143 million and in total, they are all worth N3.3 billion.
