The settlement of the huge tax commitment of N3.4 billion to the Nigerian Government has impaired the profit margin of Daar Communications Plc, Nigeria only publicly quoted broadcasting company in the 2013 and 2014 financial years, the audited results have shown.
Addressing shareholders at the joint Annual General Meetings (AGM) for the two years, in Abuja, the Chairman of the Daar Communications Group, Chief Raymond Dokpesi , Jnr. said though the company recorded a 33 per cent and 23 per cent respectively for the two years in question, the resolution of the tax and other contentious liabilities eroded the gains of the growth.
He deplored the harsh operating climate in the country in the period under review, pointing out that it had negative impact on the company revenue inflow as it hampered clients patronage level. Dokpesi said: ” In the light of the above operating challenges, your Company recorded modest improvement in earnings in 2013 and 2014 of N5.6 billion and N6.9 billion respectively.
These achievements translated to earnings growth of 33 per cent and 23 per cent respectively over earnings recorded in their preceding years.”