DAAR Communications Plc, the parent company of Africa Independent Television (AIT) and Raypower FM, has announced a post-tax deficit of N2.3 billion for the 2024 financial year.
Revealed in its 2024 financial statement, the company experienced a challenging year, with declines in key financial indicators despite a surge in revenue. Revenue increased by 16.4% to N5.3 billion, up from N4.5 billion in 2023.
However, the company reported larger losses compared to 2023, with its after-tax deficit growing from N1.6 billion in 2023 to N2.3 billion in 2024.
Loss before tax surged by 46.6%, reaching N2.3 billion, up from N1.6 billion in 2023. Gross profit declined by 9.5%, falling to N1.4 billion from N1.6 billion in 2023. Finance costs also increased by 23%, rising to N12.7 million from N10.4 million.
Again, total assets dropped by 11%, falling to N27.5 billion from N30.9 billion, while total liabilities were reduced by 13.6%, from N13.1 billion to N11.3 billion.
Television remained the largest revenue contributor, bringing in N4.6 billion, or 87.6% of the total revenue. The Radio and DNS Service segments contributed N389.3 million (7.4%) and N261.3 million (4.98%), respectively.
The company’s financial statement reveals disturbing statistics regarding its ability to remain in business. As of December 2024, DAAR Communications had accrued statutory charges, including Pension, PAYE, and VAT, totalling over N4.86 billion.
Added to this, liabilities for accrued staff salaries and terminal benefits for exited staff stood at N2.24 billion.
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