Standard Group has posted a loss of Ksh 306.1 million in the first half of the year compared to a profit of Ksh 19.3 million in a similar period last year, pointing the loss to low revenues. Revenues for the media group dropped by 42% to Ksh 1.39 billion from Ksh 2.4 billion. A notice from the company secretary points the losses to a harsh operating environment fueled by the ongoing pandemic.
“The Group’s performance during the first six months was affected by the difficult operating environment due to the COVI-19 pandemic. The industry experienced a decline in advertising spend by most of the clients which led to a drop of revenues,” says Millicent Ng’etich.
Standard Group’s unaudited results show that operating costs fell by 24% to Ksh 1.7 billion compared to Ksh 2.2 billion in 2019 H1, driven by management action in response to dwindling revenues. Direct costs fell by 40% while overhead costs fell by 15%, hence the lower operating costs.
Basic and diluted earnings per share for the group fell to negative 3.01 from 0.49 in 2019 H1.
In March, the media group announced layoffs of 170 employees after rolling out a voluntary retirement scheme citing a tough regulatory and business environment.
Last year, Standard Group made a loss of Ksh 484 million as it continued to face the rising cost of newsprint and investment costs of new stations yet to bring a profit.
READ ALSO: Standard Group Reports KSh 484 Million Loss
