Nation Media Group (NMG), Kenya’s largest listed traditional media house, has reported a loss of Ksh 572.2 million for the first six months of 2024.
- This marks a stark contrast to the modest net profit of Ksh 2.9 million recorded during the same period in 2023.
- Loss announcement comes shortly after a restructuring exercise that saw the company lay off an unspecified number of employees and bid farewell to Chief Executive Officer Stephen Gitagama.
- NMG’s turnover declined by 10%, from Ksh 3.530 billion in H1 2023 to Ksh 3.175 billion in H1 2024.
The company’s pre-tax loss of Ksh 345.8 million includes a one-off expense of Ksh 119.0 million related to the staff restructuring undertaken in June 2024. The media house attributed its dismal performance to a depressed macro-economic environment, weakened consumer spending, and declining revenues in its print business sector.
Traditional media companies like NMG have faced immense challenges in replacing lost revenues from dwindling newspaper sales and the diversion of advertising budgets to social media and other online platforms. NMG’s competitor, Standard Media, announced plans to lay off more than 300 employees in July 2024 citing similar reasons.
In a statement, NMG highlighted the conclusion of its second share buyback on 12th June 2024, with 100% of the maximum shares targeted for reacquisition being repurchased. Despite this, the company decided against paying an interim dividend, considering the prevailing economic environment and its ongoing investment plans.
