Business Daily (Nairobi)
Washington Gikunju
18 March 2008
The Nation Media Group has announced a 39 per cent increase in its pre-tax profits for last year to Sh1.6 billion and outlined plans to venture into the West African market, as the company powers on with its Pan-African growth strategy.
Buoyed by a strong regional economy in 2007, the company recorded market share gains that boosted its newspaper and television advertising revenues, increasing its Group turnover by 21 per cent, from Sh6.3 billion to Sh7.7 billion.
NMG chief executive, Mr Linus Gitahi, also announced an intended share split of 2:1 for the company's shares, which traded at an average price of Sh325 yesterday. This is expected to improve the affordability and liquidity of its shares at the bourse.
The subdivision of the company's 120 million shares with a par value of Sh5 each is subject to shareholder approval at the company's annual general meeting to be held on May 29.
The Group's board of directors recommended a final dividend of Sh10.50 per share, up from Sh7 per share paid in the 2006 financial year.
Mr Gitahi said that NMG's entry into West Africa was part of the company's strategy to become the dominant media house in Africa, in line with its mission to be the "media of Africa for Africa."
NMG is the biggest media house in East and Central Africa, with a strong presence in Uganda and Tanzania.
The Group has a majority shareholding in Monitor Publications Ltd in Uganda and Mwananchi Communications Ltd in Tanzania.
Mr Gitahi said that most of the Group's subsidiaries recorded impressive growth in 2007, which was also marked by the launch of two daily publications, Business Daily and Daily Metro.
A new editorial division, Nation Digital, was launched early this year and is expected to be a key driver of the Group's revenues in the 2008 financial year.
Briefing investors at a Nairobi hotel yesterday, Mr Gitahi said that NMG expected to do well this year, despite a slow start due to the violence triggered by the disputed December presidential elections.
"The signing of the peace accord ushers in renewed investor confidence; we expect the economy to recover and gradually achieve last year's pre-election growth rate," said Mr Gitahi.
Dr Martin Aliker formally takes over as the new Group chairman, after former chairman Mr Hannington Awori's retirement last year.
Dr Aliker is a businessman and the current chairman of Monitor Publications.
He is also the current chairman of Heritage Oil, Stanbic Bank and Credit Reference Bureau Uganda.
Be the first to Write a Comment!
Copyright © 2008 Business Daily. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.
AllAfrica aggregates and indexes content from over 125 African news organizations, plus more than 200 other sources, who are responsible for their own reporting and views. Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica.
