Nation Media Group (NMG) Share price declined by over 60 percent in 2020 to close at Ksh15.70 on December 28, the worst in seven years.
NMG’s market value is now at Ksh3.30 Billion and has declined by 57.5 billion in the last seven years.
In the first six months of 2020, NMG made a loss after tax of Ksh375.2 million as compared to a profit after tax of Ksh403.7 million in a similar period in 2019.
During the period, advertisers faced devastating financial challenges, scaled down operations and held back marketing activities in a fight for survival and several closed down due to the Covid-19 pandemic.
However, before Covid-19, NMG was still on a downward trend, making a profit after tax of Ksh856 million in 2019 as compared to Ksh1.1175 billion made in 2018, a 23.4 percent drop.
The group attributed the drop to reduced advertising spend on traditional media platforms partly attributable to changes in the regulatory environment.
“The performance was also dampened by higher newsprint costs and investment in new initiatives aimed at creating alternative revenue streams for the Group. Overall performance was substantially cushioned by reduced operating costs focused on optimizing current operations,” said the Group in their 2019 Financial Results.
NMG is the largest independent media house in East and Central Africa, operating in Kenya, Uganda, Tanzania, and Rwanda.
Among its notable media brands include NTV in Kenya and Uganda, Daily Nation in Kenya, Mwananchi in Tanzania, Business Daily in Kenya, The East African, Daily Monitor in Uganda and Taifa Leo in Kenya among others.