This archive report was first published on 28 August 2019.
On August 28, 2019, Nation Media Group (NMG) announced an interim dividend of Sh1.50 per share for the first half of 2019, despite a challenging business environment that led to an 8.4% drop in the company's total comprehensive income.
The company's board chairman, Wilfred Kiboro, attributed the decline in profitability to the tough business environment, which saw many companies cut their advertising budgets. However, he expressed confidence that the performance will improve in the second half of the year.
NMG earned Sh580.8 million in profit before tax, with a group turnover of Sh4.58 billion, a 7% drop from Sh4.92 billion achieved in the first half of last year.
Group Finance Director Richard Tobiko noted that the performance mirrors the rising number of Kenyan companies facing financial distress in the market. He added that direct costs went up due to higher newsprint prices, but operating costs dropped by 8.5% due to improved productivity and efficiency.
Group Chief Executive Officer Stephen Gitagama emphasized the need to strengthen delivery on impactful journalism while serving content in formats that resonate with the fast-evolving needs of different audiences. The company is focusing on monetizing its digital assets as the next frontier for new revenue streams.
