Nation Media Group recorded a fall in net earnings to KSh 856 Million down from KSh 1.1 billion the previous financial year.
Turnover also declined to KSh 9.1 billion in 2019 from KSh 9.7 billion the previous year. Gross Profit declined from KSh 1.6 billion to KSh 1.3 billion during the period under consideration.
Total comprehensive income declined to KSh 826.6 Million from KSh 1.1 billion. Directors of the media house attribute this poor performance to higher prices of newsprint and a reduction in advertising spend due to an adverse business environment.
Turnover and total comprehensive income declined by 6.3 per cent and 20.7 per cent respectively as Nation Media Group struggled to maintain efficiency and productivity. The Group says its making extensive investments in innovation to grow new revenue streams.
Directors have recommended a bonus share issue of one share for every 10 held in the capital of the company. These new shares will not qualify for payment of any dividend for the year 2019.
The firm’s balance sheet size grew from KSh 4.8 billion to KSh 5.2 billion.
In its outlook, NMG board says it is planning to undertake key interventions in the print media arena, to ensure it maintains its dominance in this segment.
Nation Media Group is among traditional players who are finding it tough to compete in a rapidly changing media landscape, including a decline in print media channels.
How has coronavirus affected newspapers in Africa?
A recent analysis by inkjournalism.org notes that with most African countries under lockdowns, curfews, as well as “state of emergencies, the daily and weekly production patterns of newspapers, have been disrupted. Fewer and fewer newspapers are published during this time of crisis. This can only mean that with people unable to get out of their homes to buy newspapers, and with advertising revenue falling precipitously, the newspaper industry on the continent is staring death in the face.”