Nation Media Group has recorded a 94% drop in profits from Ksh856 million in 2019 to Ksh48 million in 2020.
According to the financial documents published on Thursday, April 29, the company explained that the profits plummeted on account of the Covid-19 pandemic that led to the loss of revenue.
The firm’s revenue shrunk from Ksh 9 billion in 2019 to Ksh 6.8 billion in 2020.
NMG’s net assets fell in value from Ksh12.1 billion at the end of 2019 to Ksh11.82 billion at the end of 2020.
“The performance for the year was impacted adversely by the outbreak of the Covid-19 pandemic as governments across the region rolled out measures to combat the spread of the virus.
“These measures precipitated a drastic decline in advertising revenues, particularly between April and June 2020 as many advertisers scaled down operations and held back marketing activities in a fight for business survival,” NMG Company Secretary Angela Namwakira explained.
The adverse impact of the general restrictions on the mobility of people on newspaper copy sales was partially mitigated by growth in subscriptions to E-paper products.
Overall performance improved in the second half of the year following the gradual easing of the pandemic-related restrictions.
Television and digital revenue grew substantially while print advertising and circulation volumes showed signs of recovery.
NMG’s flagship digital brand Nation Africa, launched in July 2020, has registered growth as the publisher tries to become a modern, reader revenue-driven, content company.
Going forward, Nation Media plans to focus on building on its digital transformation initiatives through further investment in journalism and diversification of digital products.
Considering the prevailing economic environment and the firm’s investment plans, the directors did not recommend the payment of dividends.
