Nation Media Group Net Profit Falls By 9.7% to Ksh 2.2 Billion

Nation Media Group 2015 FY Results Analysis

Nation Media Group is a Kenya-based media house in East and Central Africa with operations in print, broadcast and digital media.

  • Nation Media After tax profit for the full year 2015 fell by 9.7% to KSh 2.222 billion compared to the previous period’s Ksh 2.46 Billion. The Media house says the drop can be attributed to revenue shortfall in its broadcasting division which was affected by the digital migration which resulted in a KES 225.1 Million loss.
  • Turnover fell by 7.6% to Ksh 12.3 Billion against the previous period’s Ksh 13.4 Billion with the Daily Nation and The East African newspapers posting a 5% and 19% decline in revenue respectively while Business Daily revenues went up by 1%.
  • Profit from Mwananchi Newspaper in Tanzania rose 44% due to increased circulation during the presidential election season
  • Nation media Group recorded a 3.4% decline in Cost of Sales to 2.5Billion.
  • Total assets up by 6.3% to Ksh 12.7 Billion
  • Nation Media Group’s Net cash position stands at Ksh 3.451 Billion even after dishing out Ksh 2 Billion for the new press in cash.

Commentary & Future Expectations

Newspaper division still remains the bread and butter of Nation Media Group, contributing to over 80% of NMG’s operating profit.

From the Profits in its Tanzania Newspaper, Nation Media Group is expected to report increase in revenue in the Full Year 2016 driven the completed Uganda elections and Kenya’s upcoming 2017 General elections.This will be supported by NMG’s new press which will reduce costs and save time.

NMG Chairman Wilfred Kiboro noted that 2015 was the toughest year he’s ever seen in his twenty years at NMG.

NOTE; NMG is among the only two Nairobi Securities Exchange listed companies that have constantly maintained positive FCFF between 2004 and 2014 (Nation Media Group and British American Tobacco).

Read Our Analysis on Nation Media Group; John Kibunga Kimani Now the largest Individual shareholder

Share Price Performance,Dividend & EPS

On Wednesday 23 March 2016, Nation Media Group was trading at Ksh 183 which is 40.77% above the one year low of Ksh 130 set on Oct 30, 2015.NMG2

The Directors announced a final dividend of KES 7.50 bringing the total dividend to KES 10.00.

Screen shot 2016-03-23 at 1.26.30 PM.png

NMG Earnings per share now at KSh 11.8, down 9.8%Screen shot 2016-03-23 at 1.26.03 PM.png