The Standard Group PLC reported a pre-tax loss of Ksh1.1 billion for the year ending December 2024.
Audited financial results indicate that the Group generated Ksh1.8 billion in total revenue, alongside an additional Ksh77,885 in other income.
It incurred operating costs totaling Ksh2.9 billion, resulting in a comprehensive loss of Ksh1,099,755.
The Group explained that the media industry is currently experiencing significant disruptions that adversely affect revenue streams and profit margins in mainstream business sectors.
According to the Standard Group’s Board, the macroeconomic environment remained challenging in 2024, characterized by a slowdown in growth and Gross Domestic Product (GDP).
Company Secretary Millincent Ng’etich said the deceleration can be attributed to several key factors: a major liquidity crunch, ongoing inflationary pressures, climate-related disruptions, and decreased public spending.
“The rise in inflation, primarily driven by increasing prices of essential goods and services, has significantly limited consumer purchasing power. In response, the business implemented various strategies to mitigate these negative impacts,” the Board said.
Standard Group Explains Decline in Revenue
Standard Group Plc witnessed a 23% decline in revenue compared to 2023, largely due to reduced activity from advertising and partnership clients, as well as government contracts.
The listed firm emphasised that many companies, grappling with tough economic conditions, have trimmed their marketing budgets to allocate resources to more critical operational needs, directly impacting their revenue.
Additionally, decreased audience engagement with legacy media platforms in 2024 further intensified the Group’s challenges.
“Government debt exceeding seven years has also hindered business operations, complicating efforts to adapt to changing market demands,” SG said.
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Direct Expenses & Overhead Costs
On the cost front, the Group’s direct expenses were lower than in 2023, largely due to a significant reduction in newsprint prices and electricity costs resulting from fluctuations in foreign exchange rates.
Group overhead costs decreased by 5% compared to 2023, driven by staff cost reductions and other efficiency measures implemented under the new Kaizen methodology introduced in the last quarter of 2024.
“The Group recorded a loss before tax of Ksh1.1 billion, in contrast to a loss of KES 723 million in 2023. This increase in loss was largely driven by the factors mentioned above, which directly affected our revenue and costs,” the Group said.
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Future Plans
The Board of Directors has approved a strategic plan for the period 2025 to 2027 to address the performance in 2024.
This plan focuses on establishing a cost-effective structure and aligning skills with market demands.
The strategy aims to enable necessary improvements for future prospects.
SG stated that the transformation initiatives that have been implemented within the business are yielding a positive outlook for 2025.
“We are committed to building on these efforts to drive growth and ensure sustainable operations,” SG said.
“Post-balance sheet events, along with the ongoing commitment of our shareholders, will help reinforce the trust that management has established, positioning the Group for a more resilient and prosperous future.”
The Standard Group owns The Standard newspaper, KTN, Radio Maisha, and The Nairobian among other brands.
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