Chronicle management in review after decline in sales, profits
December 5, 2002
The Guyana National Newspapers Limited (GNNL), publishers of the Guyana Chronicle says it has embarked on a review process in light of a gross decline in profits revealed in the company's 2001 Annual Report and Accounts.
That report, according to a company release on Tuesday, has led management "to the conclusion that there is a need to re-examine the performance of every department." As a result, the Board of Directors made a decision that "it was imperative that all employees of GNNL contribute meaningfully to the viability of the company," the release said.
The Sunday Chronicle this week reported that General Manager Compton Peters had told shareholders at the company's 10th Annual General Meeting at the Main Street Plaza Hotel, Georgetown, last Friday that GNNL had made a loss of $4.87 million before tax last year, following a profit of $66.8 million achieved in 2000 and that indicates a decreased performance of 107.3 percent. Peters was quoted as saying: "Decreases in revenue earned from advertising and circulation (newspaper sales), coupled with increases in expenses were the major contributory factors to an adverse performance being recorded for the year 2001."
According to the newspaper, Peters reported that advertising revenue fell from $244.7 million in 2000 to $216.24 million in 2001, a decrease of $28.46 million. In this regard, less advertising column inches being sold during 2001 resulted in this adverse position.
Further, it was noted that circulation revenue fell from $202.43 million in 2000 to $193.47 million in 2001, representing a decrease of $8.96 million. A drop in the demand for the Chronicle newspapers had led to this adverse position, Peters said.
The general manager also disclosed that the company had recorded an annual turnover of $422.98 million in 2001 as against $455.44 million in 2000, a decrease of $32.46 million, the newspaper reported.