Page 12 - Demo

12ReportOF THE CHAIRMANOverviewThe year 2015 was one of mixed fortunes. As expected in a national elections year, there was buoyant advertising demand up to the elections in September, followed by a drastic decline in demand in the fourth quarter, normally the most buoyant period in the media industry.This was not surprising as in August oil prices plunged to under U$40 per barrel for the frst time since 2009.The fall in energy prices coupled with scarcity of foreign exchange, had its impact on business confdence, and consequently on the advertising expenditure of businesses.Given this emerging market situation, GML embarked on a comprehensive review of its operating costs, and instituted a number of measures to reduce its operating expenditures. This exercise has continued into the 1st quarter of 2016.Notwithstanding these prudent cost rationalization measures, the company continued its investments in product development, technology upgrades and portfolio expansion in alignment with the growth thrust of its strategic plans.New Ventures(i) Electronic Billboards:In 2015 we expanded our operations into electronic billboards, with a plan to install 15 units at strategic locations throughout Trinidad. The installation project will be fully completed by the 2nd quarter of 2016. GML acquired state-of-the-art, high defnition digital billboards that provide bright, bold, crystal-clear images. The 40%u2019 x 16%u2019 boards are the largest to be installed locally. Built to withstand category 4 hurricanes, and with fexible system designs, they afford the advertiser, a reliable and fexible advertising medium at highly competitive rates.These billboards complement our suite of advertising options, increase our advertising capacity, and contribute to solidifying our market position as the leading media company in Trinidad and Tobago.(ii) Radio ExpansionIn 2015 we concluded an agreement for the purchase of an operating radio station in Guyana, and began operations in the fourth quarter of 2016.The latest acquisition, now brings our total operating radio frequencies to seven. The media industry in Guyana is developing, and we believe that our entry into this market, at this time, is opportune. Feedback from listeners of this frequency has been positive and encouraging.We are currently exploring other related business opportunities in Guyana.Technology:Media companies continue to undergo the most fundamental transformation thanks to ubiquitous news, global information access, instantaneous reporting, interactivity, multimedia content, and extreme customization. Today, content is more portable, more abundant and more convenient than ever before. Digital streaming services, the proliferation of smart phones, and other mobile devices and the availability of high speed mobile networks and Wi-Fi, have made all this possible.In keeping with these global trends in technology, and media consumption patterns, our multi-media offerings continue to be available to readers, viewers and listeners, via our websites, customised apps, and on all social media.We continue our daily efforts towards making our multi-media content available to our audiences, more conveniently and instantaneously, in keeping with technological opportunities.Our radio division, pioneers in HD video streaming, continue to roll out this technology across its network along with a cutting edge mobile app that not only streams audio, but