The Nation Media Group (NMG) has posted a second consecutive net loss of Ksh 254.4 million in the financial year ending December 31, 2024.
This is compared to a loss of 205.7 million posted during the same period in 2023. The loss was attributable to parent company and non-controlling interests.
This marks the first time NMG has reported consecutive annual losses in more than a decade.
The turnover decreased by 12.5%, reaching Ksh 6.229 billion from Ksh 7.116 billion in 2023.
Nation Media Group Records Second Straight Loss of Ksh 254M
The company said the decline was occasioned by a challenging macroeconomic environment marked by weakened consumer spending and rising prices of basic commodities.
At the same time, the gross profit dropped by 9.08% to Ksh 4.3 billion.
Additionally, the company’s total assets declined by 8.6%, falling to 7.5 billion while 18% decline in cash reserves to Ksh2.38 billion.
The cost of sales in the year reduced by 18.9% partly due to the decline in turnover while its continued focus on cost containment and increased digitization of business processes led to a reduction of 17.2% in operating costs.
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Despite the decline in total revenue, the company’s digital business grew by 11% per year.
This was attributable to improved monetization of its digital assets, which gained from an increase in users to 62.4 million users, up from 60.2 million in the same period last year.
The operating costs for the year include a one-off expense of Ksh 157.8 million related to staff restructuring undertaken in June 2024.
Considering the prevailing economic environment and the Group’s investment plans, the Board of Directors did not recommend payment of a dividend for the year 2024.
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NMG Future Outlook
NMG said the rebuilding of its broadcasting business is gaining traction, driven by deliberate investment in talent, content, and technology.
The company stated that it continues to focus on creating compelling content to enhance brand trust, drive audience engagement, and optimize the monetization of its expansive digital reach.
“Similarly, we are repositioning technology as an enabler to accelerate the transformation of the business into a digital-first media house, serving relevant and impactful content to our audiences,” NMG said.
“The Group will continue to invest in the delivery of its content through increased customer touch points to increase our audience reach, while maintaining a strong presence in commercially viable print media.”
Through its digital-first approach, NMG mentioned that it aims to expand its customer demographic, especially targeting the youth.
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