Nation Media Group board had advised against the issuance of dividends to shareholders after the company made a Ksh431.8 million loss before tax, in the financial year that ended in December 2023.
According to a statement from the media company, the loss was attributed to the challenging macro-economic environment characterized by weakened consumer spending amid rising prices of basic commodities.
Additionally, Nation Media Group attributed the loss to higher fuel prices and rising interest rates.
Other reasons indicated for the multimillion loss included the depreciation of the Kenya shilling against the US dollar, which resulted in an increase of 27 percent (Ksh298.7 million) in the cost of sales.
The depreciating shilling also led to a 2.5 percent decrease in turnover compared to the previous financial year.
“Considering the prevailing economic environment and the Group’s Investment plans, the Board of Directors does not recommend payment of a dividend for the year 2023.”
“The Group’s performance during the period was adversely impacted by a challenging macro-economic environment characterized by weakened consumer spending rising prices of basic commodities, higher fuel prices and rising interest rates,” the statement read in part.
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Nation Media Group Assures Shareholders
Despite the loss, the group indicated that it was confident about its performance. According to the statement, NMG will develop a portfolio of new digital products to enhance revenue.
The Group also noted that it will continue to maintain a strong presence in commercially viable print and broadcast media, focusing on unique and relevant content.
“We maintain our confidence in the investments we continue to make to transform the organization, develop a portfolio of new digital products, and enhance revenue diversification by monetizing our extensive digital presence.”
“These efforts will solidify the Group’s position as the leading muti media company in the region, delivering impactful content to our audiences,” read the statement in part.
Also Read: Nation Media Group Warns Investors and Shareholders
Revenue Makers for the Media Group
On the other hand, the media group stated that it had made significant growth in its digital footprint during the year.
According to the statement, the growth was attributed to a continued focus on audience acquisition and engagement.
Its money makers for the financial year ending in December 2023 included Business Daily, The EastAfrican and Taifa Leo.
“Our digital footprint increased to 60.2 million users compared to 57,9 million in the previous year, as a result of a continued focus on audience acquisition and engagement.”
“The Group registered revenue growth in Its niche products (Business Daily, The EastAfrican and Taifa Leo), resulting from insightful content and partnership,” indicated the statement.
