Home ECONOMY Standard Group made a loss of KSh 481.1 Million due to stiff competition,

Standard Group made a loss of KSh 481.1 Million due to stiff competition,

by biasharadigest

In 2019, Standard Group made a loss of KSh 484 Million compared to a profit of KSh 261.3 Million recorded in 2018. Its earnings were pushed down by low advertisement income. A sharp rise in the cost of newsprint and huge investments in new radio and TV channels, which are yet to break even, also led to weak financial performance in 2019.

Revenue dropped 14 percent to KSh 4.1 billion from KSh 4.8 billion in 2018.

Standard Group says it has rolled out new radio stations and two TV stations in 2019. The company expects that it will take two years before the investments become profitable. These new niche channels are Spice FM, Vybes Radio, KTN Farmers and Burudani TV. The programs join a crowded industry that suffers cut-throat competition for viewers and listeners.

Tough regulatory guidelines on betting companies resulted in reduced advertising income from betting companies.

The media house is going through a restructuring program to cut down its staff expenses and survive a fiercely competitive media industry.

Standard Group’s balance sheet shrunk from KSh 4.7 billion in 2018 to KSh 4.3 billion in 2019.

Shareholders will not receive any dividends due to poor performance of the Group’s key brands. The firm recorded a pre-tax loss of KSh 716.3 million from a gross profit of KSh 397.2 million the previous year.

The Group is confident of returning to profitability by continuing to implement its blueprint, engage more with customers and roll out more products that are responsive to the market.

ALSO READ:

Stiff competition triggers layoffs at Standard Group

Related Posts

Leave a Comment