NMG Analysis; John Kibunga Kimani Now the largest Individual shareholder

Nation Media Group is a Kenya-based media house in East and Central Africa with operations in print, broadcast and digital media.

News

NMG’s new printing press, to be commissioned early next month, will improve the quality of their newspapers by offering better resolution among other benefits.

The Tanzanian business is expected to be buoyed by advertisements during the campaign period for presidential elections and parliamentary elections which happened in October.

The publication business still accounts for more than 80% of the business.

Financials

For the six months ended 30 June 2015, Nation Media Group revenues decreased 5% to KES6.11B.

Net income decreased 6% to KES1.02B.

Revenues reflect a decrease in demand for the Company’s products and services due to unfavorable market conditions. Revenues in the TV business went down in the first half due to regulatory disruptions shifting from analogue to digital TV. Revenues should normalize in the TV business.

Dividend per share remained flat at KES2.50.

Basic Earnings per Share excluding Extraordinary Items decreased from KES 5.70 to KES 4.94.

NMG expects better results for second half of the year.

Top Ten Shareholders

•AGA KHAN FUND FOR ECONOMIC DEVELOPMENT – 44.66%
•ALPINE INVESTMENTS LIMITED – 10.15%
•JOHN KIBUNGA KIMANI – 1.57%
•STANDARD CHARTERED NOMINEES RESD A/C KE 11450 – 1.21%
•KENYA COMMERCIAL BANK NOMINEES LIMITED A/C 915B – 1.20%
•THE JUBILEE INSURANCE COMPANY OF KENYA – 1.13%
•STANDARD CHARTERED NOMINEES RESD A/C KE11401 – 1.13%
•KENYA COMMERCIAL BANK NOMINEES LIMITED A/C 915A – 1.02%
•CFC STANBIC NOMINEES LIMITED – 0.97%
•STANDARD CHARTERED KENYA NOMINEES LTD A/C KE002257 – 0.91%

Note: This % figures can change anytime

Share Price

Nation Media Group closed at 153.00 on Wednesday 26 Nov. 2015, 17.69% above the 52 week low of 130.00 set on Oct 30, 2015.

Nation Media Group share price is down by 48.14% Year to Date.

Commentary

NMG is a solid business and has stood the test of time. In fact only 2 companies have constantly maintained positive FCFF between 2004 and 2014 (Nation Media Group and British American Tobacco).

NMG’s average debt/equity between 2004 and 2014 is 3% and maintains a constant dividend policy.

NMG has a P/E ratio of 12x.

The current share price is on a 3 year low.

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