Nation Media Group CEO Joe Muganda, shareholder Alloys Chami and the group chairman Wilfred Kiboro during the annual general meeting at KICC in Nairobi. PHOTO | SALATON NJAU | NMG
NMG chief executive Joe Muganda said the outlook is based on stronger performance in the first five months of the year when most parameters of performance have been looking up.
NMG made a net profit of Sh2.6 billion in 2013, a figure that dropped to Sh2.4 billion, Sh2.2 billion and Sh1.6 billion in the subsequent three years.
Sales from the digital division grew 14 per cent last year, with the company looking at the segment to contribute 10 per cent of group turnover over the next three years.
Nation Media Group (NMG) #ticker:NMG on Friday told its shareholders that it was looking forward to better performance this year as it begins to reap the fruits of the reorganization that dominated its agenda in the past couple of years.
The company’s chief executive Joe Muganda said the outlook is based on stronger performance in the first five months of the year when most parameters have been looking up.
“We are hoping that when the time comes we shall announce that we have performed better than last year,” Mr Muganda told shareholders at an annual general meeting held at Nairobi’s Kenyatta International Convention Centre (KICC).
NMG chairman Wilfred Kiboro told shareholders that the half-year earnings are likely to be higher than 2016 if the momentum of the first five months is maintained.
“Results for the first five months have been encouraging. We are optimistic that after three years of profit decline, we will have good earnings,” Mr Kiboro said as he announced that the company would pay shareholders a final dividend of Sh7.50 per share.
That is in addition to the Sh2.50 interim dividend the media house had paid earlier leaving shareholders with a total Sh10 per share for the year, which is one of the highest payouts ever made by a listed company in Kenya. The amount translates to a total payout of Sh1.4 billion.
Mr Kiboro said NMG has so far realised good performance in key areas of operations and is looking forward to sustaining it in the remaining half of the year.
Sales from the digital division grew 14 per cent last year, with the company looking at the segment to contribute 10 per cent of group turnover over the next three years.
NMG is focusing on its digital first strategy as a means of reaching larger audiences that consume news and entertainment over the Internet. The company has restructured it's newsroom to serve all platforms seamlessly, with content provided online, in print media and broadcast.
NMG made a net profit of Sh2.6 billion in 2013, a figure that dropped to Sh2.4 billion, Sh2.2 billion and Sh1.6 billion in the subsequent three years.
Mr Muganda said NMG is this year focusing on consolidating the gains made and entrenching its presence in the digital media space to capture new audiences and grow revenues.
Mr Muganda said NMG will also focus on containing costs even as it develops or acquires unique content.
NMG recently acquired a majority stake in KenyaBuzz, an online entertainment directory with a strong events, lifestyle content and social brand, to grow the Group’s digital footprint.
KenyaBuzz enjoys significant reach in Kenya and Uganda, and has high engagement with younger consumers.
“This acquisition underscores the Group’s determination to expand its revenue base by tapping into new digital opportunities,” Mr Muganda said.
