Nation Media Group (NMG) Full Year 2014 Financial Results

(Last Updated On: March 26, 2015)

nation media group

NMG announced a 1% rise in profit before tax from Ksh3.59 billion to Ksh3.62 billion for the year ended December 2014. Revenues were at Ksh13.3 billion which is a drop of 1.6%. Other income grew by 43.6 percent to Ksh500 million.

Breakdown:

1. Nation Newspapers division recorded a 5% drop in revenues while operating profit dropped by 1%. Direct costs also went down by14%. This brings in majority of the revenue for the company.

2. The EastAfrican has a revenue growth of 7% while operating profit was up7%

3. Business Daily has a revenue growth of 10% while operating profit was up 85%

4. Monitor Publications experienced a 3% drop in revenue, operating profit was down 62% while direct costs were down 3%.

5. Mwananchi communications had a 4% rise in revenue but a 25% drop in operating profit. Direct costs were up 32%.

6. Television in Kenya which comprises of NTV and QTV experienced a 23% rise in advertising revenue plus a 1,754% rise in operating profit. This however contributes just about 5% of the group’s profits.

7. NTV Uganda had a 7% rise in revenue while operating profit was up 1%.

8. In radio, Nation FM and QFM recorded 18% drop in revenues while operating profits were down 57%.

9. Nation Digital which comprises of Nation.co.ke , businessdaily.com, nairobinews.co.ke and theeastafrican.co.ke had tremendous growth. Nation.co.ke had its monthly pageviews grow from 20 million to an average of 70 million thanks to higher penetration of smartphones. Buinessdaily.com grew from 1 million pageviews to 3 million pageviews.

NMG incurred a Ksh230 million one off expense to write off analogue broadcasting equipment and the company’s old press machine. It will also install a ksh1.5 billion printing press and will use cash from its reserves which stood at Ksh3.4 billion.

NMG also invested in a printing press in Tanzania’s Lake zone regions to improve on deliveries.