MEDIA

Low operating costs see NMG profit rise to Sh1.17 billion

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Negotiations are currently ongoing to have him accept the new role and save Nation the reputational risk it is facing in pushing out key talent at such a critical time.
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Nation Media Group (NMG) has posted a 2.3 per cent growth in half-year in profit before tax to Sh1.17 billion as at June 2017, reversing a drop last year.

Net earnings were recorded at Sh825.6 million in the first six months of the year compared to Sh785.4 million in the same period in 2016.

The Nairobi bourse-listed media house posted Sh5.27 billion in turnover from Sh5.6 billion as at June 2016.

Chief executive Joe Muganda attributed the performance to lower operating expenses, recovery of pending bills from government, and continued growth of digital advertising revenue.

The company has declared an interim dividend of Sh2.50 per share.

Nation Media Group’s Editor-in-Chief Tom Mshindi (left) and group chairman Dr Wilfred Kiboro during an investor briefing at a Nairobi hotel today. Photo Credit: DIANA NGILA/NMG

NMG’s flagship broadcast units, NTV in Kenya and NTV Uganda, saw operating profit for each double in the half year period, buoyed by strong programming and content popular with audiences. NTV Kenya posted an 18 per cent growth in revenue.

The company’s digital business saw operating income more than double, with revenue surging 54 per cent, as NMG leveraged on its flagship portal – www.nation.co.ke – and that of other 15 websites to turn online audiences into revenue streams.

Lifestyle magazine KenyaBuzz – where NMG acquired a 51 per cent stake last year – also saw its circulation as well as operating profit double, said Mr Muganda.

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