The Nation Media Group’s half-year profit before tax dropped by Ksh130 million, hit largely by the digital migration disruptions that saw some private TV stations switch off their signal for three weeks.
The region largest media house announced a pretax profit of Ksh1.43 billion, down from Ksh1.56 billion in the same period last year, reflecting significant drop in its TV business between February and March at the height of the digital migration stand-off with the government.
“On the television front in Kenya, during the period that we were off air, a lot of advertisers pulled out and it was pretty much a wait and see attitude,” said its new chief executive officer Joseph Muganda (pictured below) while announcing the results yesterday. “I am happy to report that we are back on track and I am sure when we report our full-year results, you will see a different picture.
Major television stations in the country — including Nation’s NTV and QTV, Royal Media’s Citizen and Standard’s KTN — were off air beginning mid-February following disagreements with telecommunications the Communication Authority of Kenya. Despite the disruptions to the TV business, cash generated from operations increased, Mr Muganda said.
NEXT READ: CHALLENGES AHEAD FOR NEW NATION MEDIA GROUP CEO
The company’s turnover for the period under review decreased 5.2% to Ksh6.11 billion. Cash generated from operations increased 28.6% to Ksh1.56 billion from the previous year’s Ksh1.21 billion. This was Mr Muganda first investor briefing since taking over as chief executive from his predecessor Linus Gitahi.
Group chairman Wilfred Kiboro said NTV and QTV returned profits for the three months to July, and they are expected to close the year in positive territory.
“The digital migration process is now behind us and we can focus on how to grow the business going forward,” said Mr Kiboro, while describing Mr Muganda as the right person to lead the company.
