Traditional media company RJR Group posted a net loss of $40 million over three months ended June 2022 as revenues are down and expenses are up.
The onset of the pandemic resulted in more advertisers turning to digital channels to interface with clients.
That said, RJR described its dip in revenue as a general softness in the advertising market “due to the protracted impact of COVID-19, non-recurrence of revenues from the Ministry of Education, and the softness in the overall advertising market due to businesses continuing to experience supply-chain challenges”.
RJR also mentioned, for good measures, higher global inflation and the Russian/Ukraine war.
Revenue totalled $1.3 billion for the June first quarter of 2022, down from $1.4 billion a year earlier.
Higher expenses, however, resulted in the group making an operating loss of $38 million compared to an operating profit of $160 million a year earlier.
“In response to dampening consumer demand, advertisers appear to have reduced spending in anticipation of a return to more normal conditions in the short to medium term,” said RJR in its financial results.
In the meantime, RJR is preparing to host the FIFA World Cup for free to air television later this year.
Over the decades, the RJR group usually nets losses or lower profit during the quarter of the global football championship due to the heavy cost of hosting the event based on gaining exclusive rights.
The World Cup will begin in late November.