One Caribbean Media reports $61.7m loss

IMPAIRMENT COSTS attributed to One Caribbean Media (OCM)’s associate companies resulted in the integrated company reporting $61.7 million in net losses for the year ending December 31, 2024.

In 2023, OCM reported $30.4 million in profits after tax.

In notes by auditors BDO it was reported that Novo Technology, a company that provides payment processing, digital media and software development, is currently engaged in legal proceedings and negotiations with regard to "the recovery of outstanding receivables that are material and pervasive to Novo’s financial statements."

The auditor's report said the group’s share of the value at risk in Novo came up to more than $76 million.

As a result, management decided to record an amount equal to the value of the group’s interest in Novo as an impairment.

"The board has taken a conservative decision to impair its investment in one of its associates which has a long outstanding receivable due to it.

"Notwithstanding this impairment, it is anticipated that this matter will ultimately be favourably resolved and will redound to the benefit of all parties," said OCM chairman Faarees Hosein.

The company’s consolidated financial statement showed it earned $17.1 million in profit before tax and impairment, which is still $20 million less than profits before tax and impairment for the same period the year before, when it earned more than $37 million.

Hosein in his remarks listed several challenges that contributed to the comparatively low performance.

"Our newspaper segment incurred restructuring costs and other one-off costs as management sought to develop business models better aligned to the current operating environments.

"In Barbados, capacity challenges with the electrical grid persisted and impacted the financial performance of our renewable energy company.

"In TT, the forex shortage seriously affected our distribution business and put a strain on supplier relationships."

Hosein, however, said efforts are being made to mitigate the challenges the company is facing.

He said in Barbados actions were taken to reduce operating costs while authorities look for a final solution to its power grid problem.

Hosein also noted efforts being explored to deal with the forex crunch in TT.