Nation Media Group has registered a drastic decline in net profit for the year that ended on 31st December 2020. The Group’s net profit dropped to Ksh. 48 million compared to Ksh. 856 million registered in 2019, equivalent to a 94.4% decline.
The decline has been attributed to Government restrictions and other effects of the COVID-19 pandemic. The restriction measures have severely affected one of the biggest media companies in East Africa.
The company recorded a sharp decline in advertising revenue and income from the sale of newspapers also fell significantly. The Group’s revenue also decreased to Ksh 6.81 billion from Ksh. 9.05 billion recorded the previous year.
Nonetheless, the media company has registered notable growth in digital subscriptions in the period under review. In July, the company launched a new digital brand, Nation.Africa which it expects to drive long-term profitability. Nation.Africa is aimed at telling authentic stories from all over the world.
In a press statement, Nation Media Group stated, “Going forward, the Group will focus on building on the early gains from its digital transformation initiatives through further investment in our journalism and diversification of our digital products offerings, while upholding its strong position in the print and broadcast media sectors.”
The value of the firm’s total assets decreased to Ksh. 11.82 billion at the end of 2020, from Ksh. 12.1 billion at the end of 2019. Its total liabilities also fell to Ksh. 3.89 billion from Ksh. 4.3 billion the previous year.
Last year, the Nation Media Group, in a rare move, did not declare a dividend payment for the financial year 2020.