The Nation Media Group has issued a profit warning to its shareholders as the financial year nears its end.
A notice issued by Company Secretary Angela Namwakira said the company has faced tough economic times.
She attributed this to a relentless increase in the price of basic commodities, a drastic rise in fuel prices, runaway depreciation of the Kenyan Shilling, rising interest rates and higher taxes.
According to the board, through Namwakira, an increase in global prices of newsprint coupled with a weakened Kenya Shilling against the US Dollar and higher distribution costs arising from fuel prices have resulted in significant incremental direct costs compared to the previous year.
Read More
"Consequently, the Board of Directors having reviewed the company's performance forecast for the current trading period has determined that the earnings for the financial year ending December 31, 2023, will be lower than the earnings for the previous year by at least 25 per cent," Namwakira stated.
The company has however exuded confidence that cost-cutting measures and innovation carried out will be key in rejuvenating the company's earnings.
“The Board remains confident that the investments we have made to accelerate product innovation, diversify revenue streams, and transform the organisation into an agile, customer-centric, and data-driven media company will deliver long-term shareholder value.”
Nation Media Group owns NTV Kenya, NTV Uganda, Nation FM, Daily Nation, Daily Monitor (Uganda), and Mwananchi Newspaper (Tanzania) among many other products.
-1728108852.jpg)
