NMG 2020 Financial Results: The Nation Media Group has reported a 94 per cent profit drop for the full year ended December 2020.
The media house, which is the largest in Eastern African, reported a full year net profit of Sh. 48 million down from Sh. 856 million it reported in the fully year ended December 2019.
This massive profit drop was attributed to declined revenues from advertising due to the pandemic that adversely affected businesses in 2020.
“The performance for the year was impacted adversely by the outbreak of the 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 said.
The NMG 2020 financial results show that during the year under review, revenue shrunk from Sh. 9 billion in 2019 to Sh. 6.8 billion. Net assets fell in value from Sh. 12.1 billion at the end of 2019 to Sh. 11.82 billion at the end of 2020.
The company is however expecting to record improved financial performance in the current year as business and advertising revenues improve. The media house has also been digitizing its products and has already launched paywalls to boost revenues. Its flagship paywall currently has over 50,000 paid subscribers.