This will be a difficult week for anyone working at Record. According to columnist Daniel Castro, from Notícias da TV, the network’s main executives were warned last week that they should make cuts in their teams, with a strong impact on budgets. All areas will be affected, including affiliates, but mainly Journalism, where the highest salaries are found.
The ‘passaralho’, as mass journalistic layoffs are popularly called, is a response to the bad moment the station is going through, with a drop in advertising sales and an increase in production costs. Last year, Record recorded a loss of BRL 517 million, a historic record.
The media market as a whole is going through the worst crisis in the last eight years, and television stations have been the most affected, losing advertisers to multinationals that invest only in technology and explore the production of third-party content. In recent weeks, Band and Gazeta have also gone through strong internal adjustments.
Record has already made occasional cuts throughout the first half, such as presenter Geraldo Luís, who had a contract until September of this year. In recent weeks, there have been several layoffs in the area of Journalism in Rio de Janeiro. Of the new shutdowns, only the TV drama area will be spared, as it has already been fully outsourced and is under the control of the Universal Church of the Kingdom of God.
What was the reason for the damage?
As anticipated by journalist Sandro Nascimento, from NaTelinha, Record recorded a loss of more than half a billion reais in 2022, after three years of consecutive profits (2019, 2020 and 2021). Most of the damage, however, was not caused by it, but by Banco Digimais (formerly Renner), which came to be controlled by Bishop Edir Macedo, owner of Record, in 2020.
Last year, Digimais had a loss of BRL 323 million. As Record controls the bank, it absorbs this result in its balance sheet. Without the negative performance of Digimais and other companies controlled by Record, the broadcaster’s loss would be “only” R$ 188 million.
Record’s balance sheet shows that the broadcaster increased its advertising revenue by just R$6 million in 2022 (from R$2.008 billion to R$2.014 billion). However, the costs of operations, production, sales and administration, plus the financial equivalence (that is, the losses of Digimais and other controlled companies) rose 39%, from R$ 1.842 billion to R$ 2.568 billion.
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