Nation Media Group (NMG) is leveraging product innovation and organizational transformation to complement its shift to digital content and diversify revenue from traditional streams.
NMG CEO Stephen Gitagama told shareholders Going forward, the focus will be on two key pillars, product innovation and organizational transformation, which will enable the company to leverage its multi-channel platforms to drive viewer acquisition, engagement and content monetization.< /p>
This will increase company revenue after entering paid digital content via the Nation.Africa brand as it diversifies revenue from traditional streams such as advertising and print newspaper sales.
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The company will also review mergers and acquisitions.
“We identify fusion and acquisition opportunities for products that add value to the group’s journey in key social areas such as agriculture, youth, environment, education, technology and others,” said Mr. Gitagama during the company’s 59th Annual General Meeting yesterday.
The company’s revenue increased by Sh800 million to Sh7.6 billion in December, while profit before tax more than tripled to Sh730 million in the same period from Sh120 million in 2020.
Growth was attributed to the acceleration of subscription content and recovery in TV and print revenues, which took a hit in 2020 amid the economic fallout from the coronavirus.
“Targeted cost management measures were taken to improve operational efficiency and increase productivity. The Group’s subsidiaries in Uganda and Tanzania also enjoyed a strong rebound and reported improved earnings,” said Group Chairman Wilfred Kiboro during the AGM.
The Company will also pay shareholders a final dividend of 1. Sh 5 per issued share paid and paid up share capital as of December 31, 2021 due to revenue recovery.
Digital News Content Subscriptions
NMG first experimented with digital news content subscriptions in February last year year and has changed a lot since then thanks to its large audience in the regional market.
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The company launched the Nation.Africa brand to drive the shift to paid online content, which includes platforms such as podcasts, puzzles, videos and newsletters.
NMG is aiming for a bigger share l of the content service sector, whose annual turnover is estimated at more than Sh 10 billion through the switch to paid digital content.
The company has also registered the “Nation Media Foundation” to her to allocate resources and attract key strategic partnerships, highlighting the firm’s leadership in Kenya’s efforts to achieve the Sustainable Development Goals.