The Nation Media Group (NMG) has announced a full year net loss for the period ended December 2023. The media company s financial reporr shows that it recorded a net loss of Sh. 205.7 million.
This loss was attributed to among others reduced spending power by consumers and the weakening of the Kenya shilling in the year 2023.
“The Group’s performance during the period was adversely impacted by a challenging macro-economic environment characterized by weakened consumer spending, rising prices of basic commodities, higher fuel prices and rising interest rates,” the media house states.
“In addition, the depreciation of the Kenya shilling against the US dollar aggravated the impact, resulting in an increase of 21 per cent or Sh. 298.7 million in our cost of sales and a decline of 2.5 per cent in turnover compared to prior year.”
During the period under review, revenues declined by 2.5 per cent to Sh. 7.1 billion while cost of sales increased by 21 per cent to Sh. 1.7 billion. Total assests declined by 4.7 per cent to Sh. 8.2 billion.
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Nation Media stated that it made a decision to impair the printing press in Kenya, resulting in an impairment charge of Sh. 291.4 million.
“Our digital footprint increased to 60.2 million users compared to 57.9 million in the previous year, as a result of a continued focus on audience acquisition and engagement,” the media company stated.
The company had previously issued a profit warning. Already, the business had recorded a sharp decline in profitability for the first six months of 2023 when its net profit declined 98.8 per cent to just Sh. 2.9 million.
Following these results, the media company announced that it would not be paying any dividend for the year 2023.
“We maintain our confidence in the investments we continue to make to transform the organization, develop a portfolio of new digital products, and enhance revenue diversification by monetizing our extensive digital presence,” the Nation Media stated.