Nation Media Group (NMG), Kenya’s largest independent media outlet, has reported a record $1.9 million (KES254.4 million) loss for 2024, hit by falling advertising revenues and a costly restructuring process.
The loss is a 27% increase from 2023’s $1.5 million (KES 205.7 million) loss despite an 11% growth in online subscriptions. The company’s board has opted not to declare a dividend for 2024 because of the loss.
“Considering the prevailing economic environment and the Group’s investment plans, the Board of Directors does not recommend payment of a dividend for the year 2024,” NMG said in a statement.
The company’s revenues dropped by 12.5% to $48 million (KES 6.229 billion), which it attributed to a “challenging macroeconomic environment” marked by high inflation, reduced consumer spending, and a general slowdown in business activity. The drop represents the steepest annual decline in over a decade for the NSE-listed media group, whose flagship brands include Daily Nation, Business Daily, and NTV.
Reduced consumer spending cut revenue streams for media houses relying on consumer-facing brands like newspapers and discretionary advertising budgets. In the last quarter of 2024, Kenya’s inflation averaged 7.9%, which saw prices of key consumer staples such as maize flour and electricity increase by over 20%.
Despite the difficulties, NMG’s digital business posted an 11% year-on-year revenue growth on the back of an increase in online users to 62.4 million, up from 60.2 million in 2023. The company’s pivot to digital has accelerated in recent years, with the group rolling out revamped online platforms, paywall experiments, and data-driven content strategies.
“We are repositioning technology as an enabler to accelerate the transformation of the business into a digital-first media house, serving relevant and impactful content to our audiences,” NMG said.
“The group will continue to invest in the delivery of its content through increased customer touchpoints to increase our audience reach while maintaining a strong presence in commercially viable print.”
The growth partially offset sharp declines in traditional print and broadcast revenue segments, which have been under pressure from shifting consumer habits and shrinking advertiser budgets.
Kenya’s most prominent media outlets, like NMG and Standard Group, face shrinking newspaper circulation as audiences move online, declining ad spending by major brands, and increasing newsprint and distribution costs. This has been made worse by the country’s ongoing cost-of-living crisis.
