Last Update27 Jun 25
WaneInvestmentHouse has increased revenue growth from -2.0% to 0.1%, decreased future PE multiple from 40.2x to 20.2x and decreased discount rate from 26.6% to 15.0%.
DAAR Communications Plc showed meaningful top-line growth in Q1 2025, though still ended the quarter with a net loss of ₦91.4 million. This marks a substantial improvement from the ₦502.5 million loss recorded in Q1 2024, driven by stronger revenue and reduced one-off impairments.
🔍 Key Performance Highlights
📈 Revenue Surge
- Q1 2025 Revenue: ₦1.17 billion
- Q1 2024 Revenue: ₦932.4 million
- YoY Growth: +25.4%
Revenue rebound suggests improved monetization from broadcasting segments (AIT & RayPower), and possibly a stronger advertising market recovery.
⚖️ Improved Gross Profit
- Gross Profit: ₦303.3 million vs ₦207.5 million YoY
- Gross Margin: Improved from 22.3% to 25.9%
Slight efficiency gains indicate better cost control despite inflationary pressures.
💡 Other Income More Than Doubles
- Other Income: ₦145.7 million (Q1 2025) vs ₦55 million (Q1 2024)
Likely from non-core income such as rental income, licensing, or asset disposals—bolstering operating profit.
📉 Losses Narrow but Operating Costs Still High
- Admin Expenses: ₦498.9 million (↑6.5% YoY)
- Selling Expenses: Sharply down to ₦38.3 million from ₦66.4 million
- Impairment Charges: ₦0 (vs ₦228.4 million in Q1 2024)
- Finance Charges: Slight increase to ₦3.2 million
The absence of impairment charges was the main driver of the improved net result, though administrative expenses remain elevated.
🧾 Balance Sheet Insights
🔸 Total Assets: ₦27.4 billion (flat QoQ)
- Non-current assets make up 88%, driven largely by broadcasting infrastructure.
🔹 Cash Position Declined
- Cash & Cash Equivalents: ₦54.5 million (↓73.2% from ₦203 million in Dec 2024)
Declining liquidity could pressure near-term operations if not reversed by higher operating cash flows.
💼 Equity Position
- Total Equity: ₦16.1 billion
- Retained Losses: Deep at ₦19.26 billion
- Shareholders’ Funds Supported by:
- Share Premium: ₦13.41 billion
- Revaluation Surplus: ₦17.94 billion
The company remains technically solvent but continues to struggle with long-term accumulated losses.
⚠️ Leverage and Liabilities
- Total Liabilities: ₦11.3 billion
- Trade & Other Payables: ₦9.7 billion (dominant portion)
- Tax Liabilities: ₦748 million (unchanged)
- Gratuity Obligations: ₦735 million
DAAR's heavy reliance on payables and subordinated loans signals limited room for aggressive expansion without external financing.
📌 Conclusion & Outlook
DAAR Communications Plc is on the path to recovery, as the sharp reduction in quarterly losses and growth in revenue suggest operational traction. However, the persistent high administrative costs and liquidity drain remain areas of concern.
Investor Takeaway: While DAAR has narrowed losses, structural profitability remains elusive. If revenue growth sustains and cost controls tighten, a return to profit may be within reach in the coming quarters. For now, cautious optimism is warranted as the media company stabilizes.
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