Page 13 - Demo

GUARDIAN MEDIA LIMITED AND ITS SUBSIDIARIES ANNUAL REPORT 2021 11Challenges precipitated from the Covid-19 pandemic continued unabated for the most part of the year. Shrinking advertising budgets and digital market disruptions, all combined to ensure that 2021 was once again an exceedingly challenging year.The virus continued to dictate how the majority of citizens conducted their lives albeit to a lesser degree than 2020. With numerous health restrictions still in place and the general population fearful of becoming ill, consumers remained extremely cautious with regard to decision making on major consumer purchases and investments.%u00a0The Government began relaxing covid restrictions in August of 2021, gradually rolling back restrictions on various forms of social activity, including limited access to beaches and rivers and participation in community sporting events. The Government also committed to keep the business sector open despite rising infection levels and death rates, which it did. This brought about renewed hope and optimism within the business community and increased business activity especially leading up to the Divali and Christmas seasons. This was a key factor with regard to Guardian Media%u2019s ability to reverse a $5M loss at the end of Q3, and deliver a profit of $6.5M at the end of Q4.While we remain confident that the global economic recovery has commenced in earnest, there is concern over the events unfolding in Eastern Europe and the global impact of the Russian invasion of Ukraine.Here at home, management%u2019s core strategies to run a more efficient organization and build commercial capacity has stabilized Guardian Media%u2019s operations.Over the period 2020-2021, approximately $23 million in costs were removed from the company%u2019s operating footprint .Guardian Media%u2019s commercial structure was reorganized and strengthened to provide the requisite commercial muscle required to grow market share over the same period.These key initiatives, combined with a renewed thrust in the development of local content for both traditional and social media platforms and the continued training and development of our employees all served to reinvigorate and motivate staff, without which the reversal of Guardian Media%u2019s decline could not have been achieved.Owing to these factors and the sheer hard work, sacrifice and commitment on the part of management and staff, I am pleased to report that Guardian Media Limited has returned to profitability for the second consecutive year (2020 & 2021) after three successive years of losses (2017-2019).What is also remarkable, is that the company%u2019s return to profitability occurred during the height of the Covid-19 pandemic, when the majority of businesses were closed or limited in their commercial activities for a substantial part of both years.For the year ending December 31, 2021, Guardian Media reported a profit before tax of $6.5 million compared to a $7 million profit before tax in the prior year. Revenues reported for the year ending December 31, 2021, were $104.7 million ($110.6 million %u2013 2020) reflecting a decline of $5.9 million or 5% in advertising revenues due to COVID 19 challenges. The Company also benefited from a year-overyear decline in expenses of 6% from the continuing reduction in controllable expenses and efficiency improvements. Unlike mainstream industries, a media house must create, execute, and commercialize fresh new content every day on all platforms. We recognize that it is our people who constitute the key resource upon which we depend on for Guardian Media%u2019s ultimate success. It is this realization that ensures the organization will remain committed to enhancing it%u2019s human resource capacity, through training and development across the organisation, particularly in the areas of content creation, journalism, digital media and customer service.