Standard Media Group has issued a profit warning saying that that profits will dip by at least 25 per cent for the year ending 31 December 2019.
In this case, the board blames the dwindled performance on increased newsprint costs in the year. Moreover, key existing clients spent less in the year due to subdued economic growth and limited access to credit.
According to Orlando Lyomu, CEO Standard Group, costs were high due to investments in new products whose revenues will be realised in subsequent years.
READ ALSO: Standard Group reports 85% drop in half-year profits
Moreover, the board believes that new laws enacted during the year added to the firm’s woes. For instance, the regulations in the betting and gaming sector led to investors exiting the Kenyan market.
Similarly, regulatory changes affected alcoholic and beverages companies, the tobacco industry, and the education sector. Therefore, there was reduced spending on advertising that is likely to hurt the Standard’s profits.
RELATED: Standard group earns KSh397 million profit before tax in 2018
