Revenue generated by the state-owned National Communications Network (NCN) in 2014 decreased by over $25.6M when compared to the same period for 2013.
This was according to the company’s 2014 annual report which was presented to the National Assembly on Monday by Prime Minister, Moses Nagamootoo. The state broadcaster has been facing severe losses over the years. Audited by the Audit Office, the report states that the financial statements have been prepared under the historical cost convention, as modified by the revaluation of land and buildings and conform to International Financial Reporting Standards adopted by the Institute of Chartered Accountants of Guyana and the Companies Act 1991.

The report goes on to detail NCN’s revenue for 2014, which amounted to $432M compared to $457M in 2013, a decrease of over $25M. According to the statement of income found in the report, gross profit also decreased from $438M in 2013 to $396M in 2014. However, on the positive side, net profit increased from $24M in 2013 to $30M in 2014. The company’s income from subvention in both years remained fixed at $81M.

Interesting to note was that although gross profit had declined from 2013 to 2014, operating expenses for the company in 2014 was more than that in 2013. The report states that $514M was spent on operating expenses in 2014, while $508M was spent in 2013 – an increase of over $6M.
In relation to the value of total assets, this increased by over $60M; from $1.474B in 2013 to $1.480B in 2014. However, the Auditor General (AG) pointed out in the report that while $1.2B was shown as non-current assets for 2014, the company did not implement a Fixed Assets Register.

“In addition, neither master nor sectional inventories were maintained for the year under review contrary to the Stores Regulations. As a result, the accuracy, validity and completeness of the amount $1.2B shown, could not be verified” the AG said in his statement in the report.
At that time, the company had seven Directors, namely; Prem Misir, Andrea Branford, Julianna Hudson, Carlton James, Leslyn Lowe, Kwame McCoy and Lavaughn Stewart. A total of $320,000 was paid to the Directors for 2014.

NCN was incorporated under the Companies Act of Guyana (No. 29 of 1991) on February 6, 2004, following the merger of the Guyana Television Broadcasting Company Limited (GTV) and the Guyana Broadcasting Corporation (GBC).

According to the report, the company’s principal activity is to provide quality educational, entertainment and inspirational programming to Guyana via radio and television broadcasting. The national broadcaster has its headquarters in Georgetown, with three major out-of-town branches in New Amsterdam – Berbice, Watooka – Linden, and Anna Regina – Essequibo. The operation in Berbice and Linden are commercialised and earning revenues. NCN also has several relay locations throughout the country to facilitate its national grid.