Standard Group, the publisher of Kenya’s second largest newspaper The Standard, has finally released its financial results for 2024, which show a slight improvement in performance even though revenues dropped. According to the financial results released on 4th June, Standard Group recorded a loss of KES 1.1 billion in 2024, up from KES 1.2 billion in 2023.
Loss before taxation for 2023 was KES 722 million, which was pushed up by a tax expense of KES 538 million to a net loss of KES 1,261,440,000. In the year under review, the company has not factored in taxation, keeping net profit at the gross value of KES 1,099,755,000. If tax is expenses, the loss would be significantly higher.
Management says Standard Group experienced a 23% decline in revenue compared to the previous year, largely due to decreased activity from advertising and partnership clients as well as government contracts. Many companies, grappling with tough economic conditions, have reduced their marketing budgets to allocate resources to more critical operational needs, directly affecting media revenue, while others have opted for niche digital platforms.
Additionally, it says reduced audience engagement with legacy media platforms in 2024 further strained finances. “Government debt exceeding seven years has also hindered business operations, complicating efforts to adapt to changing market demands,” Standard Group Company Secretary, Ms Millicent Ng’etich, says in filings at the NSE. “On the cost front, Group direct expenses were lower than in 2023, largely due to a substantial decrease in newsprint prices and electricity costs resulting from fluctuations in foreign exchange rates.”
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Standard Group overhead costs decreased by 5% compared to 2023, driven by staff cost reductions and other efficiency measures implemented under the new Kaizen methodology introduced in the last quarter of 2024. Presently, and in view of mitigation of the 2024 performance, the Board of Directors has approved a strategic plan for the period 2025 to 2027, focusing on establishing a cost-effective structure and aligning skills with market demands. “This strategy aims to enable necessary improvements for the future,” Ms Ng’etich says.
The management said the media industry is currently facing significant disruptions that are adversely affecting revenue streams and profit margins in mainstream business sectors. In 2024, the macroeconomic environment remained challenging, marked by a slowdown in growth and Gross Domestic Product (GDP).
This deceleration can be attributed to several key factors: a major liquidity crunch, ongoing inflationary pressures, climate-related disruptions, and decreased public spending. The rise in inflation, primarily driven by increasing prices of essential goods and services, has significantly limited consumer purchasing power. In response, the business implemented various strategies to mitigate these negative impacts.
“Looking ahead, the transformation initiatives that have been implemented within the business are yielding a positive outlook for 2025,” she said. “We are committed to building on these efforts to drive growth and ensure sustainable operations. Additionally, post-balance sheet events, along with the ongoing commitment of our shareholders, will help reinforce the trust that management has established, positioning the Group for a more resilient and prosperous future.”
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