Nation Media Group (NMG) posted KSh 1.3 billion gross profit decline in its full-year 2019 earnings from KSh 1.6 billion previous year.
The group’s pretax profit fell to 1.3 billion shillings said the performance was adversely impacted by a challenging economic environment.
“The performance of the traditional media platforms – Daily Nation, Business Daily, The East African, was further affected by higher prices of newsprint, its main production input,” said the Group in its audited results ending Dec 31.
Its Turnover at Ksh 9.1 billion was 6.3 per cent lower with its comprehensive income for year at Ksh 0.9 billion was 18.4 per cent below prior year.
The Group has offered investors a bonus share issue of one for every 10 held. “The Interim dividend of Ksh 1.50 (60 per cent) per share on the issued share capital of 188,552,286 ordinary shares of Ksh 2.50 each, paid in 2019 will be the total dividend for the year.”
Going forward, the company says it will use its cash reserves to make investments in innovation to grow new revenue streams and gradually transition to digital media ‘becoming a significant contributor of its revenue as the scope for growth in the legacy media business declines globally’.