DESPITE posting a profit, Radio Jamaica Limited (RJR) suffered from decreased advertising which made its revenues plummet after a record high the previous year.

The radio station earned $133 million, down $89 million from the unprecedented $222 million earned in the year ended March 2010.

“As anticipated, profits were lower than for 2009/2010 due largely to the global financial challenges which impacted media, in ways greater than

some other sectors, as businesses slashed expenses with advertising being among the first” said Gary Allen, the company’s managing director.

Still, RJR enjoyed support from its clients and advertising agencies, which allowed it to profitably end what he deemed a “challenging year”, he said.

The RJR Communications Group, of which Radio Jamaica Limited is a part, also experienced a decline in revenues. The group made $1.94 billion, down 2.6 per cent from the previous year. RJR’s annual report attributes this decrease in revenue to “the general contraction in the advertising industry as companies experienced the weight of the national and global economic depression. Most sectors chose the slashing of advertising budgets as planks in their cost-saving exercises”.

It wasn’t solely reduced revenues that affected the group’s net profit as it also had increased expenses to contend with. These expenses totalled $713 million, over $100 million more when compared to the year prior. Among the contributors to its greater operating expenses was the salary increase that was awarded to its employees. This saw RJR Group paying out $597 million to its workers, $40 million more than the previous year.

Administrative expenses grew by $77 million, largely the result of adjustments made to the group’s pension scheme.

Allen said “Our challenges are heightened by developments in policy, regulatory and the competitive aspects of the industry.”

The group heavily invested in itself, in attempting to maintain its competitive edge. Its transportation fleet, transmission capability and the control room of FAME FM were the primary areas to benefit.

There was also an increase of $26 million in the fees for broadcast rights and production costs and another $18 million for expense related investments in the group’s websites.

The RJR Communications Group is made up of its “free to air” television station, Television Jamaica (TVJ), three radio stations RJR 94FM, Fame 95 FM and Hitz 92 FM and cable television stations Jamaica News Network, TVJ Sports and Reggae Entertainment Television. It also includes Multi-Media Jamaica Limited, a technologies and business solutions company which provides Internet and streaming services among other technical support.

The group continues to be bolstered by the great success of TVJ which has leveraged its position as the most popular television station with almost 66 per cent of viewership.

TVJ made great strides in the previous year, capitalising on several news and sports events that dominated the nation, including the West Kingston incursion and the earthquake in Haiti.

It continues to appeal to Jamaicans with a slew of popular local programmes. Schools’ Challenge Quiz, National Schools’ Debate, Entertainment Report and the most popular local talent competition, Rising Stars.