East Africa’s largest media house, the Nation Media Group (NMG), posted a 23 percent rise in pretax profits for the first half of 2012 which it attributed to an increase in newspaper revenues and fall in operating costs.
The media conglomerate which is listed in Kenya at the Nairobi Securities Exchange (NSE) and runs newspapers, radio and TV stations in Kenya, Uganda, Tanzania and Rwanda, recorded a profit of 1.37 billion shillings ($16.4 million).
The NMG’S circulation revenue for its newspapers division went up by 13 percent while advertising sales revenue shot up by 9 percent.
Following this, the Board of Directors decided to increase its interim dividend pay-out by 67 percent to 2.50 shillings a share up from 1.50 shillings it has paid in previous years.
The positive results drove the NMG’s share price to 178 shillings ($2) in mid-day trading Wednesday, up from Tuesday’s close of 174 shillings.
The groups products in print, broadcast and digital posted operating profits while the NTV Uganda unit recorded an eight-fold operating profit- 777 percent in its fifth year of operation. The firms also recorded lower operating costs in the six months.
NMG Chairman Wilfred Kiboro said the NMG expects to post impressive results moving forward as its products and services grow. The NMG is also expecting its expansion into Rwanda to begin paying off soon.
“We are optimistic that initiatives we have taken are going to continue bearing fruit. This is more so to ensure we do not continue to depend on Kenya,” said Kiboro.
Kiboro said the group is seeking to make more investments in the region with plans to launch a TV station in Tanzania where NMG already runs its print business.
“Management continues to undertake initiatives to take full advantage of the improved regional economic environment to ensure NMG’s market leadership continues to grow,” said Kiboro.
NMG recently acquired Dembe FM in Uganda, opened a new radio station (K FM) in Rwanda and launched QTV, a mass market Kiswahili television station in Kenya.
Founded by His Highness the Aga Khan in 1959, the NMG has become the largest independent media house in East and Central Africa.
