Nation Media Group (NMG) has recorded a tenfold increase in net profit to Kes 493.1 million in the year ended 31st December 2021 as compared to kes 47.9 million that was reported in 2020.
The region’s leading news organisation attributed the rise to strong sales and advertising revenues as part of the strategies put in place to aid in the recovery of business post the Covid-19 pandemic.
Total revenues in the group rose 12 per cent year on year to kes 7.6 billion compared to Kes 6.8 billion reported in 2020. Profit before tax was up 509% to Kes 730.7 million during the financial period ended 31st December 2021.
” This performance is attributable to the recovery of print advertising sales, increased revenue from digital products and services, and continued growth of broadcasting revenue. In addition, improved debt collection and effective cost management contributed positively to the Group’s profitability.” NMG in their financial results.
Nation’s digital transformation journey accelerated during the post-pandemic to cushion the drop in newspaper circulation. Digital revenues increased by 20 per cent to account for 6 per cent of the Group’s turnover.
“2021 was a very challenging year. We were still experiencing the impact of Covid-19 but our focus was on recovery while still pursuing transformation agenda,” NMG chief executive Stephen Gitagama said.
The media house said it is banking on its large online presence and a revamped digital plan to grow sales citing it is working to leverage a huge online presence to monetise the online audiences into sustainable revenue streams.
Broadcast revenues grew from 20 to 22 per cent during the period under review cutting the overreliance on print revenues which declined from 75 per cent to 72 per cent. Nation Courier reported a 13 per cent growth in revenue.
NMG Dividend and Outlook
The Directors have resolved to recommend a final dividend of Kes 1.50 per share (60%) for the year, on the issued and paid-up share capital of 190,295,163 ordinary shares of Kes 2.50 each, subject to approval by the shareholders at the Annual General Meeting. No interim dividend was paid during the year.
NMG expressed hope in their digital transformation journey saying going forward the bulk of the revenues will come through going digital. However, the legacy media like print will still remain for a few years but distribution will be mainly digital.
“We hope to reduce reliance on print gradually to not more than 25 per cent,” NMG chairman Wilfred Kiboro.