Nation Media group’s net profits dipped by 24 percent to KSh403 million in the first half of 2019, from KSh529 million reported in a similar period in 2018. The weak earnings are a result of a drop in the firm’s income.
The company’s revenues went down by 7 percent to KSh4.58 billion compared to KSh4.92 billion reported in 2018. NMG blames the tough business environment, currency depreciation, and reduced interest income for the drop in revenues.
While the firm’s direct costs grew by 14 percent to KSh970 million, total costs went down by 4 percent to reach KSh4 billion from KSh4.16 billion in the first half of 2018.
Nation Media Group posted a 24 percent growth in digital sales, highlighting the shift in the news and entertainment industry from traditional media channels to digital platforms.
Despite the drop in net earnings, NMG has maintained the KSh1.5 interim dividend payout for every ordinary share held.