The Standard Media Group has announced a full year net loss of Sh1.1 billion. This loss came in a financial year that saw the troubled media house record a revenue decline of up to 22.6 percent to Sh1.8 million.
In the same year, the company’s total assets went down by 6.4 percent to Sh3.8 billion. The media house attributed the decline in revenue on reduced government spending and low advertisement business from corporate customers.
“The Group experienced a 23 percent decline in revenue compared to the previous year, largely due to decreased activity from advertising and partnership clients as well as government contracts. Many companies, grappling with tough economic conditions, have reduced their marketing budgets to allocate resources to more critical operational needs, directly affecting our revenue,” the company said.
“Reduced audience engagement with legacy media platforms in 2024 further intensified these challenges. Government debt exceeding seven years has also hindered business operations, complicating efforts to adapt to changing market demands.”
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During the year under review, overhead costs decreased by 5 percent compared to the previous 2023 financial year. “Direct expenses were lower than in 2023 largely due to a substantial decrease in newsprint prices and electricity costs resulting from fluctuations in foreign exchange rates,” the media house further said.
The financial results came out as the company gears for a rights issue. In the upcoming rights issue, the Standard Media will be looking to raise Sh1.5 billion from shareholders.
The company is plotting to issue a discount on its rights issue share price, with the new shares set to be sold at Sh5.29 per share. “As part of this offering, the company will issue a total of 283,661,120 new shares at Sh5.29 per share, aiming to raise approximately Sh1.5 billion,” the company stated.
