Advertising and communication services firm Scangroup #ticker:SCAN has increased normal dividend and declared another special dividend as net profit jumped 28.1 percent to Sh612.2 million.
The performance for the year ended December 2018 will see shareholders earn Sh1 per ordinary share, up from Sh0.75 paid in the previous year and another special dividend of Sh3 per share.
During the period under review, revenue grew by 9.3 percent to Sh4.5 billion, with 62 percent coming from Kenya.
This was down from 73 percent primarily on account of TNS Kantar acquisition which has sizeable presence in Nigeria.
Advertising and communication services firm Scangroup #ticker:SCAN has increased normal dividend and declared another special dividend as net profit jumped 28.1 percent to Sh612.2 million.
The performance for the year ended December 2018 will see shareholders earn Sh1 per ordinary share, up from Sh0.75 paid in the previous year and another special dividend of Sh3 per share.
“The dividend will be paid from retained earnings of the company which stood at Sh1.794 billion as at 31 December 2018,” the firm said.
Total payout will amount to Sh1.72 billion up from Sh284.1 million paid out last year, offering a boost to shareholders.
The firm has also given a bright outlook for 2019 saying that year-to-date performance has been good and it expects improved operating profit. Operating profit was up 55.1 percent to Sh641 million in 2018.
During the period under review, revenue grew by 9.3 percent to Sh4.5 billion, with 62 percent coming from Kenya.
This was down from 73 percent primarily on account of TNS Kantar acquisition which has sizeable presence in Nigeria.
The firm said revenue in traditional business activities of advertising, media and public relations fell due to reductions in expenditure by majority of its clients in Kenya.
“On a positive note, there was growth in the digital and technology offering and in research due to the acquisition of TNS Kantar research business in July 2018,” said the firm.
Operating and administrative expenses grew by 4.1 percent to Sh3.86 billion from Sh3.7 billion spent in the previous year.
Scangroup beats the odds of the tough year that has seen about 15 Nairobi Securities Exchange-listed firms issue profit warnings as earnings came under pressure.
Most of the other firms that have declared increase in dividend payout have been in the banking sector, including KCB Group #ticker:KCB as well as Cooperative Bank #ticker:COOP.
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