Despite posting marginally higher revenue for the financial year (FY) 2023/24, Radio Jamaica Limited found itself in the red by more than a half-billion dollars in losses.

Revenue for the year was J$5.49 billion or 1 per cent more than the J$5.44 billion posted for FY 2022/23.

With higher direct expenses, the company posted one per cent lower gross profit than a year ago. Gross profit for 2023/24 was $2.54 billion versus $2.57 billion a year prior.

Radio Jamaica recorded impairment losses on its receivables and higher administrative expenses, both of which contributed to an operating loss of J$531.20 million. By comparison, the operating loss for 2022/23 amounted to $198.15 million.

Auditors KPMG addressed the issue of impairment in its ‘Key Audit Matters’.

“Expected credit losses amounting to J$490,783,000 for the group and J$100,645,000 for the company have been recognised in respect of financial assets, the determination of which is highly subjective and requires management to make significant judgement and estimates including determination of the appropriate variables and assumptions used and the application of forward-looking information,” it stated.

“We, therefore, determined that the impairment of trade receivables and investments have a high degree of estimation uncertainty,” it continued.

The auditors indicate that they “obtained an understanding” of the models used to calculate expected credit losses on trade receivables. They also ascertained the assistance of a financial risk modelling specialist to assess the models used.

Radio Jamaica also accounted for losses from associated companies.

Net loss for the year was J$528.75 million compared to a net profit of J$250.34 million in FY 2022/23.

While the media group increased its cash holdings, total assets declined year-on-year from J$6.82 billion to J$6.39 billion.