Nation Media Group on Wednesday reported its Full Year 2016 results posting a decline of 24 per cent in profit after tax to Sh 1.635 Billion from the previous year’s Sh 2.22 Billion.
Total Revenue also fell by 8 per cent to Sh to 11.3 Billion, mainly attributed to a drop in advertising volumes, closure costs on the non-performing businesses and staff reorganization.
NMG CEO Joe Muganda said “It’s tough in as far as advertising is concerned; and the reason is simple: The economy isn’t doing well.”
NTV revenue grew by 7 per cent, Business Daily Revenue went up slight by 1 per cent, while revenues from the company’s mother product Daily Nation fell by 6 per cent.
In Uganda, Revenues from the Daily Monitor fell 6%, Daily Monitor fell by 20%, Mwananchi by 23% and NTV Uganda by 29%.
Nation Media Group has also announced plans to implement a paywall on Business Daily website in order to increase revenue, which has been diminishing due to a decline in paid print readership and advertising revenue.
Paywall is whereby a reader is required to pay subscription before accessing any or part of an online content.
For the fourth year in row, the company retained a dividend of Sh 10.per share. NMG will hold its Annual General Meeting on Friday 23rd June as from 2.00 PM, KICC – Nairobi.
A few Tweets from the Briefing;
#NMGInvestorBriefing Business Daily Relaunch resulted in growth of copy sales by 20%. NMG about to implement a paywall on BD – a first
— Clifford Machoka (@CMachoka) April 5, 2017
— Mr. 6.0 (@FQanini) April 5, 2017