BY CAROLINE AMOSUN
DAAR Communications Plc, a leading Nigerian media and entertainment company, has recorded a significant growth in its profit after tax for the first quarter of 2023.
The company released its statement of financial position for March 31, 2023, which shows a profit of N144.6 million, up by 657 percent from the N19.2 million recorded in the same period in 2022.
Following the data provided on the statement, it appears that the surge in its profit for the year was as a result of the spike in its revenue for the periods analysed.
Daar’s revenue for the first quarter of 2023 was N1.37 billion, up by 15 percent from N1.19 billion in the same period in 2022.
DAAR Communications’ gross profit for the quarter also increased by 36 percent, from N493.7 million in 2022 to N670.9 million in 2023.
However, the company’s non-current assets remained stable at N9.34 billion, while its current assets grew by 12 percent to N3.45 billion.
Thus, the company’s total assets saw an overall spike of 3 percent, thereby amounting to N12.8 billion at the end of Q1, 2023.
Furthermore, DAAR Communications’ equity increased by 32 percent, from N2.2 billion in 2022 to N2.9 billion in 2023. The company’s share capital and share premium remained unchanged at N4 billion and N13.4 billion, respectively, while its retained earnings decreased by 5% from N15.2 billion in 2022 to N14.5 billion in 2023.
The company’s statement of cash flows shows that it generated N328.3 million from operating activities in the first quarter of 2023, compared to N16.9 million in the same period in 2022. DAAR Communications also invested N97 million in MTS and paid N236.9 million in subordinated loan repayment.
Following the company’s performance in the entertainment market, its growth is attributable to the effectiveness of the company’s innovative strategies in the face of the challenges in the industry and the distressed economy over the period.
Apparently, the company’s strong financial performance in the first quarter of 2023 bodes well for its future growth prospects, as it continues to expand its operations in Nigeria and beyond.