This archive report was first published on 26 June 2020.
On June 26, 2020, Nation Media Group (NMG) announced its plan to accelerate its digital transformation to overcome the effects of the Covid-19 pandemic.
Group chairman Wilfred Kiboro stated that the pandemic had provided the company with important lessons, including the urgent need for radical and revolutionary change in its business model.
The company will shift its focus from legacy advertising and physical reader copy to digital advertising and reader revenue, including exploring new revenue streams in the events and technology space.
Despite posting a Sh856 million profit for the year ended December 31, 2019, NMG shareholders will not receive a final dividend for the past financial year as the group seeks to preserve cash and invest in its digital transformation initiatives.
Dr. Kiboro emphasized the need to conserve cash during the pandemic and invest in digital platforms, which will be the new normal.
The company has also recommended a bonus share issue of one new fully paid ordinary share for every 10 shares held in the capital of the company, subject to approval by the Capital Markets Authority and the Nairobi Securities Exchange.
Group Chief Executive Officer Stephen Gitagama noted that increased investment in paid digital content presents one of the best avenues to turn around fortunes at a time when the pandemic has hurt circulation and advertising revenue.
NMG is eyeing a bigger share of the Content Service Provision (CSP) sector, whose annual revenues are estimated at more than Sh10 billion.
The group has already started an in-house content service platform and launched TAG Brand Studio, an in-house digital marketing agency, to diversify revenue streams.
