Nation Media Group(NMG) Net Earnings for the first six months of this year was up to KSh 285.2 Million compared to a net loss of KSh 375.3 Million over a similar period in 2020.
The Group’s turnover increased from KSh 3.3 Billion in H1, 2020 to KSh 3.7 Billion in H1, 2021, an increase of 14%.
The listed publisher and broadcaster’s Gross Profit rose 22% to KSh 3.2 Billion at the end of June this year compared to KSh 2.6 Billion in H1, 2020.
” The recovery in business performance that started in the second half of 2020 has continued to hold up to June 2021, mainly attributable to growth in print and television advertising revenue, digital advertising revenue, E-paper and Nation. Africa subscriptions,” said the NMG Board in a statement.
In addition, NMG said cost containment and business optimisation interventions rolled out at the onset of the pandemic have resulted in sustained operational efficiency and continue to positively impact profitability.
NMG recovers from fall in advertising revenue
Directors of the firm attribute the sterling recovery to growth in print, online and TV advertising revenue and a fall in operating costs which declined by 5%.
To boost its TV and Video revenue streams, NMG plans to create daily short-form videos to drive engagement and monetise traffic; co-create Advertiser Video on Demand; establish a curate TV Archive for Nation. Africa and reposition the TV/Video business to meet the needs of younger audiences.
NMG made a Pre-tax profit of KSh 410.7 Million in H1, 2021 from a pre-tax loss of KSh 328.8 Million as the media house emerged from the adverse effects of COVID-19 pandemic on the business.
The Group’s total comprehensive income increased by a significant 182% to KSh 290 Million from a comprehensive loss of KSh 352.8 Million in H1, 2020.
Its financial statements indicate that the print division is still the most dominant contributor to profitability at 40%, followed by broadcast( 22%) and digital(15%).
In June 2021, shareholders of NMG approved a share buyback plan that targets to repurchase 10% of the firm’s issued shares or 20.74 Million shares, at the price of KSh 25 per share.
In its updates, NMG told investors that as of 23rd August 2021, 80.9% or 16.77 Million shares had been repurchased. The closing date for the share buyback program is 24th September 2021 or on 100% uptake, whichever comes first.
With next year’s polls round on the horizon – NMG is expected to ride the surge in demand for radio and TV advertising by the political class to lift its performance further.
Following trends in the media business, NMG was also hard hit by the effects of COVID-19 pandemic as advertisers cut down on their spending. But its recovery from the doldrums could indicate that the media industry is on a slow recovery.
In its outlook, the NMG Board said it has set the stage for digital migration to ensure its business is sustainable in the long-term period, riding on its award-winning digital brand Nation. Africa.
The Group has made important strides in setting the foundation for its digital transformation to ensure
long-term sustainability of its business by building an award-winning digital brand, Nation.Africa, which has
recorded remarkable growth in audiences driven by unique content.
Going forward, the Group will continue making investments to diversify its digital products offerings while
sustaining a strong presence in the print and broadcast media sectors through quality journalism.
NMG said it will continue to take appropriate actions to safeguard the safety of its staff and customers while
ensuring continuity of its operations within the guidelines prescribed by the respective authorities in the
region.
Governments in East Africa continue to enforce varying interventions as the Covid-19 situation
unfolds.
Considering the prevailing economic environment and the Group’s long term investment plans, the directors
do not recommend the payment of an interim dividend for the year 2021.
ALSO READ: Decline in Advertising & Newspaper Sales Pushes NMG’s Net Profit Down 94% to KSh 48 Million
