Nation Media Group (NMG) profit for the six months ended June 30 has declined by 13.1 percent to Kes247.8 million from Kes285.2 million recorded during a similar period in 2021.
During the period, the Kimathi Street-based media company turnover eased to Kes3.7 billion from Kes 3.72 billion realised in 2021.
The Nairobi Securities Exchange-listed firm attributed the results to elevated operating costs stemming from the more than two-fold increase in newspaper printing costs compared to a similar period last year.
Nation Media is among the importing businesses in the country that have felt the heat radiating from a depreciating shilling which has set off a rise in raw material import costs.
The publisher of the leading newspaper Daily Nation imports paper and the depreciation of the shilling has swelled the company’s import expenditure while newspaper prices have remained the same.
NMG’s flat turnover was sustained by growth in broadcast business, improved revenue from digital products and the growth of niche products like Business Daily.
In the period, NMG digital footprint grew to 52.2 million users an increase from 44.9 million users reported by June 2021.
As a result of the company’s bland financial performance, the board refrained from paying investors an interim dividend due to the prevailing operating environment and the forthcoming investment plans.