RJR Group Relied On Cost✂️ to Drive Profitability – Q3 Dec 2020 Results

We noticed RJR’s stock⬆️4.7% today, so we checked their results to see if it’s worth ??

◾️RJR Group relied on cost✂️ to drive profitability as income?
◾️Print?segment heavily hit by Covid
◾️Group’s revenues shifting to Audio. Was almost 50/50 now ~42% of sales from print

The company is reporting that
◾️Advertisers cut spending in almost every category of business with events being cancelled/postponed

◾️Which is probably why you’re seeing the push to drive online subscription revenue?
◾️Too slow and not organized / aggressive enough I think

During Q3 Dec 2020 they
◾️⬆️stake to 50% in parent of Gustazos (ecommerce platform that sells products)
◾️Agreed to acquire 10% stake in ePost Caribbean (offers digital mktg tools incl. newsletters, social media campaigns, online surveys, ecommerce for small biz, online ads etc)

How did they perform this qrtr?

⚫️Revenues?6% or $99m
⚫️Print segment?revenues?20% / $145m
⚫️Audio revenues???️up 5% / $46m
⚫️Other income?$32m or 86% also related to Print income falling ◾️Expenses were ?or ✂️due to efforts to contain costs (or due to the slowdown in demand)
◾️Admin expenses⬆️$45m / 15%
◾️Profits⬆️59.7%
◾️Group continues to make investments in its business using up majority of its operating cash flow