The Nation Media Group (NMG) has disclosed a net loss for the full year ending December 2023. According to the company’s financial report, the Aga Khan-owned group incurred a net loss of Ksh. 205.7 million.
This negative result was primarily attributed to reduced consumer spending power and the depreciation of the Kenyan shilling throughout 2023.
“The Group’s performance during this period was significantly affected by a challenging macroeconomic environment characterized by decreased consumer spending, escalating prices of essential goods, higher fuel costs, and escalating interest rates,” the media house explained.
Furthermore, the depreciation of the Kenyan shilling against the US dollar exacerbated the situation, leading to a 21% increase in cost of sales amounting to Sh. 298.7 million and a 2.5% decline in turnover compared to the previous year.
In the period under review, revenues saw a 2.5% decline to Sh. 7.1 billion, while the cost of sales surged by 21% to Sh. 1.7 billion. Total assets also decreased by 4.7% to Sh. 8.2 billion.
Nation Media disclosed that it decided to impair the printing press in Kenya, incurring an impairment charge of Sh. 291.4 million.
“Our digital presence expanded to 60.2 million users compared to 57.9 million in the previous year, as a result of our continued focus on audience acquisition and engagement,” the media company highlighted.
The company had previously issued a profit warning, with a significant decline in profitability recorded for the first six months of 2023, where net profit plummeted by 98.8% to just Sh. 2.9 million.
Consequently, the media company announced that it would not be paying any dividends for the year 2023.
“We remain confident in the investments we are making to transform the organization, develop a portfolio of new digital products, and enhance revenue diversification by capitalizing on our extensive digital presence,” Nation Media emphasized.
