Nation Media Group Announces Half Year Results

Nation Media Group Ltd announced half year results ended June 2015 with the following highlights:

• Total revenue stood at KES 6,110.10mn in June 2015 from KES 6,446.60mn in 2014. The loss was attributed to the analog switch off during digital migration early this year, resulting in a three week shut down which adversely affected advertising revenue.

• Profit before tax saw a decline of 8.4 percent from 1,561.50mn to 1,429.60mn while net income declined by 5.7 percent from KES 1,084.90mn in 2014 to KES 1,023.10mn in 2015 resulting to an earnings per share(EPS) of 4.94 in the half year 2015.

• The Balance Sheet grew by 7.5 percent attributed to increase in current assets from KES 7,375mn in 2014 to KES 8,140mn in 2015 and an increase in retained earnings from KES 5,765.40mn in 2014 to KES 7,318.80mn in 2015.

• There was a surge of 3.4 percent in the cash flow statement attributable to 52.1 percent increase in net cash from operating activities from KES 671.20mn in June 2014 to KES 1,021.20mn in 2015.

• The company is finalizing on the set up of the new press plant which is expected to be commissioned before end of the year. The company declared an interim dividend of KES 2.50.

Verdict

Competition has opened up new TV stations which presents a hurdle for broadcast revenue. The launch of free daily newspapers by competition is set to continue narrowing Nation Media’s circulation revenue.

The diversification of business lines into digital platforms will aid in offsetting the slow growth in circulation revenue, majorly from the youthful populace.