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Nation Media Group has issued a profit warning for the 20202 financial year, citing tough economic environment due to the coronavirus pandemic.
The Group in a public notice says it expects earnings to drop by more than 25 percent.
“Specifically, the pandemic related disruptions and the resultant financial challenges which many businesses are facing their operations has resulted in holding back of marketing and advertising activities,” NMG board Chairman Wilfred Kiboro said.
“Additionally, the unprecedented general restriction in the mobility of people across the markets we operate in has dampened newspapers copy sales.”
The Chairman said they will sustain the ongoing interventions to minimize the overall impact of the pandemic on its results for the year while accelerating the implementation of its strategic initiatives to safeguard the company’s success in the long term.
In April 30, 2020, the Group announced a temporary reduction of 5 percent to 35 percent on the gross pay for all staff earning a gross monthly pay of Ksh 50,000.
The salary cuts took effect from 1st May 2020, and will be reviewed every three months subject to the company’s performance.
Its long term strategy is to 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’.
