Daar, Fidelity Bank Resolve Loan Dispute

Chairman, Daar Communications Plc, Mr. Raymond Dokpesi



.records N4bn loss in 2011

Chairman, Daar Communications Plc, Mr. Raymond Dokpesi said  Thursday that it had amicably resolved controversies relating to Fidelity Bank loan adding that all court cases had also been withdrawn by both parties.

Speaking in Abuja at the company's 4th Annual General Meeting (AGM), he assured investors that with the resolution, coupled with ongoing strategic re-positioning programmes of the company, there should be better returns on investment going forward.

He, said although there was slight increase in turnover to N5.1 billion in 2011 from N4.8 billion the previous year, interest and similar charges on the Fidelity Bank loan made the company to record net loss of N4.0 billion in the 2011 financial year, compared to N1.5 billion the previous year.

According to him, interest and other charges on the loan accounted for over 76 per cent of the net loss position during the period under review.

The chairman also noted that the business environment in 2011 was generally unfriendly and affected the media industry. This, he said, was worsened by poor power supply, security challenges, unstable economic policies of government as well as unstable exchange rate among others.

The company did not  declare dividend and the shareholders expressed understanding and faith in the future of the company.

Dokpesi said the company had embarked on expansion of terrestrial operations and had reached advanced stage for a re-launch of its digital services (DaarSat).

He said: "I have no doubt that the coming on board of DAARsat as a foremost indigenous pay television would ultimately redefine satellite broadcasting in Nigeria and significantly increase the earnings potentials of your company."

"You would agree with me that these expansion programmes are capital intensive while the expected returns would last for a long time. There is no doubt that your is at the verge of becoming the media giant of Africa and ultimately your investment in the company will grow into becoming a blue-chip. I want to assure you that the huge investments so far embarked upon in the company would soon translate to greater returns on your investment."

Meanwhile, shareholders who spoke to THISDAY renewed their support for the company given the difficult situation it found itself in the recent past, adding that there's usually a light after a tunnel.