Nation Media Group has released its full year 2017 results with performance declining for the 5th consecutive year. The listed media house said the prolonged elections led to a fall in advertising and circulation revenue, its bread and butter.
Turnover for the period fell by 6.2% to Sh 10.6 Billion. Profit before income tax fell by 20.5% while net earnings also declined by 17.4% to Sh 1.35 Billion.
Digital Revenues grew by 42% but contributed just 4% of the total revenues. Daily Nation Revenue down was by 10%, The East African Revenue down 21%, Business Daily down 11% (costs for the paper rose by 10%). NTV Revenues went up by 12% while direct costs for the same rose by 14% while operating results were down 58%.
“The results were also impacted by deterioration in credit quality across the group, as a result of delayed payments particularly from regional governments.” It noted in a statement.
The company also spent about Sh 259 Million as a one off severance pay off following a staff re-organization that led to a substantial number of the job cuts largely in the print division of the business. According to inside sources, about 150 employees were laid off.
Despite the poor performance, the board retained dividend at Sh 10 per share for the 6th consecutive year.
A few tweets from the Investor Briefing;
NMG chairman says they have a very healthy cash position and they will use this to invest in digital assets.
— Kenyanwallstreet (@kenyanwalstreet) April 18, 2018
NMG Chairman says the amount of debt that Govt owes the local media houses is HUGE. Adds that GOK owes NMG about Sh 700 million which dates back to 2015
— Kenyanwallstreet (@kenyanwalstreet) April 18, 2018
NMG Chairman says “Nation Media Group is not being sold to the Kenyatta Family. That’s total nonsense “
— Kenyanwallstreet (@kenyanwalstreet) April 18, 2018
“The exit of 8 columnists won’t affect circulation. They are not as important as they think they are. There’s a lot of talent out there.”
Nation Media Group Chairman Wilfred Kiboro.
??
— Kenyanwallstreet (@kenyanwalstreet) April 18, 2018
NMG chairman says they are in the process of recruiting a new CEO. With regards to those who have left NTV, he says “We are not worried. There are those who are equally happy with the exits” https://t.co/CJvrk7G8bz
— Kenyanwallstreet (@kenyanwalstreet) April 18, 2018
