Radio Jamaica Reports Significant Financial Losses Due To Hurricane Melissa -

Radio Jamaica Limited reports significant financial losses due to Hurricane Melissa, while implementing structural changes for recovery and growth. Radio Jamaica reported the results in their recently released Unaudited Financial Statements for the Third Quarter Ending December 31, 2025.

Executive Chairman Joseph M. Matalon, in his remarks indicated that the Group aims to improve efficiency through technology and targeted AI deployments across the organization, while emphasizing their commitment to recovery and growth.

Financial Performance Overview

Group revenues for Q3 declined by $261 million (23.8%) year-on-year, primarily due to reduced advertising revenue post-Hurricane Melissa.
Year-to-date revenues at the end of Q2 were 10% below the previous year, with Q3 losses exacerbated by the hurricane’s impact.
Group expenses decreased by $100 million (7%) year-on-year, but this was insufficient to offset the revenue decline, resulting in after-tax losses of $242 million compared to $58.8 million in the same quarter last year.
For the nine months ending December 31, 2025, revenues fell by $489 million (12.1%), leading to after-tax losses of $502 million, up from $329 million in the prior year.

Cash Flow and Operational Changes

Cash used in operations improved by $89 million, totaling $161.8 million for the nine months, reflecting better working capital management and cost reduction measures.
The Group has initiated multiple structural and operational changes as part of its transformation program to enhance efficiency and governance.

Corporate Simplification Initiatives

The Group applied to the Supreme Court for a Scheme of Arrangement to eliminate several dormant non-core subsidiaries, reducing operational entities from thirteen to three.
Shareholders approved the Scheme on January 28, 2026, aimed at lowering overheads and simplifying governance.

Governance Rationalization Efforts

The Board has approved changes to enhance governance oversight at the Group level, adding new members with skills aligned with the strategic direction.
The Group Board membership is now mirrored across three principal corporate boards, reducing costs and strengthening strategic alignment.

Operational Consolidation Strategies

Commercial support functions, including Finance, HR, and IT, are being consolidated across the Group.
Sales functions have been unified under a single Group Head of Sales to standardize workflows and improve service levels.
Marketing and digital execution are also consolidated under a Group Head to enhance advertising offerings.

Joint Ventures and Collaborations

On December 16, 2025, the Group commenced a joint printing and distribution venture with Jamaica Observer through North Beech Limited, expected to yield significant cost savings.
The transition to this joint venture has proceeded smoothly, enhancing operational efficiency in the print business.

Digital Broadcast Platform Development

The Group is advancing its digital television rollout and engaging with regulators ahead of the analog switchover to broaden free-to-air programming offerings.

Asset Optimization and Relocation Plans

The Group is relocating remaining staff from North Street to the Lyndhurst Road campus, targeting completion by April 30, 2026.
Management is assessing options for the North Street property, including commercial leasing or divestment.

Leadership Alignment and Strategic Retreat

A strategic retreat in January 2026 aligned senior leadership and the Board on medium-term priorities, focusing on revenue diversification and digital growth.
The Board aims to restore revenue momentum following the advertising market retreat caused by Hurricane Melissa.

Outlook and Future Strategies

The Board’s priorities include restoring advertising revenue through improved sales execution and enhancing digital monetization.
Structural cost savings from consolidation and property optimization are also key focuses.

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