Kenya’s oldest media organization, The Standard Group, has faced a deeper financial downturn, reporting a loss of Sh111.4 million for the six months ending June 2024.
This represents an 8 percent increase in losses compared to the Sh102 million loss incurred in the same period last year.
The media house, which celebrated its centennial in 2018, attributed its worsening financial situation to a challenging business environment amid global uncertainties.
The company pointed to sustained geopolitical tensions, stricter monetary policies both locally and internationally, and reduced consumer spending in advertising as contributing factors.
The appreciation of the Kenyan shilling during this period also negatively impacted its earnings. The shilling strengthened against the U.S. dollar, closing at Sh128 to the dollar in June, up from Sh157 in December, marking an 18.5 percent gain.
The company’s financial struggles have led to additional staff layoffs, compounding existing issues with employee payments and defaults on obligations to suppliers and staff savings and credit cooperative (Sacco).
Revenue fell by 16.8 percent, dropping to Sh1.049 billion from Sh1.260 billion in the previous six-month period.
The Standard Group attributed the revenue decline to decreased advertising spending as businesses cut back on expenses to navigate the current economic conditions.
The company has implemented cost-cutting measures, including reductions in staff costs, which led to an 11.4 percent decrease in total operating expenses compared to the same period in 2023. Consequently, the directors decided not to recommend any dividends based on the company’s performance.
Looking ahead, The Standard Group remains optimistic that market conditions will improve as the government introduces policies to strengthen the economy.
The company is undergoing a transformation process to better meet the evolving needs of its clients through innovation across its media products. Additionally, it is focusing on cost rationalization to enhance operational efficiency, with hopes for renewed profitability as it works to boost revenue and reduce costs.
