Nation Media Group to Lay off Workers in Major Reorganization

Nation Media Group (NSE: NMG)  is set to lay off an unknown number of its staff in its Group reorganisation.

In a statement, Clifford Machoka Head of Corporate and Regulatory Affairs said that the company was implementing its strategy which will “Continue to involve the reorganisation of our operations across the Group.”

“Regrettably, this will result in a reduction of our workforce,” He announced.

“We have made critical strides such as converging our newsroom, launched new innovative products, developed new revenue streams while ensuring we secure our current print and broadcasting.”

The Group posted a 24.6 percent decline in earnings per share to Kshs 8.9 in FY’2016 from Kshs 11.8 in FY’2015, attributed to a 5.7 percent decline in operating revenue compared to a 2.8 percent decline in operating expenses.

Excluding one-off costs totaling to Kshs 342.9 mn attributed to staff reorganization costs and closure costs on QTV, QFM and KFM Rwanda, the group recorded a 9.2 percent decline in core earnings per share to Kshs 10.7.

According to Cytonn Investments the Group’s growth will be driven by continued leveraging on new press capabilities for efficiency, strategic partnerships with regional stations such as Star, Lolwe and Njata, and the recent acquisition of Kenyabuzz to expand the audience reach, strong programming and embedding the digital opportunity through strong social media presence to drive audience and advertising revenue growth on digital platforms, and regional studios for better brand quality.