The Standard Group today held its 106th annual general meeting, during which shareholders were apprised of the company’s performance over the year to December 2023.
The shareholders also deliberated on the firm’s plan to raise Sh1.5 billion through a rights issue.
The funds are expected to strengthen the media company’s balance sheet to be able to take advantage of emerging digital growth opportunities as part of an ongoing reorganisation by the media firm.
As part of the reorganisation, the Standard is also putting in place measures to enable it to weather the challenges that the industry is currently grappling with including delays in settling pending bills owed to media companies by the government, changing media consumption behaviour and increased media fragmentation.
The directors of the 120-year-old Nairobi Securities Exchange (NSE) listed firm were bullish, noting that already the turnaround efforts put in place are bearing fruit and expect the firm to turn a profit in 2025.
Standard Group chairman Julius Kipngetich said the reforms the company has been implementing in this year have begun to bear fruit.
“We have a new leadership team, which has done a lot of work in 2024 and look forward to greater profitability and business opportunities in the years to come,” he said.
“We have seen new directors join the board. At the management level, through a very rigorous recruitment process, we have brought on a new chief executive and we believe she will continue on the reforms that have already started and in 2024, some of those reforms have begun to bear fruits.
"As from September, we focus on the company to be making profit month on month going forward. We will continue to strengthen the operations of the group."
He added that further reforms are being undertaken to strengthen the different brands under Standard Group’s stable.
“We have also reorganised our channels, KTN Home and KTN News have been merged into one channel. We have also closed one of the radio stations that has not been performing and we will continue to strengthen the remaining radio stations which are doing very well in their market segments.
Standard Group Chief Finance Officer Wesley Kimosop, MD Broadcasting Joe Munene, Group CEO Marion Gathoga-Mwangi and Board Chairman Dr Julius Kipngetich during the company's 106th Annual General Meeting at the Group's headquarters.
"There is a lot of work going on and we will continue to strengthen the company,” said Dr Kipngetich.
“I want to assure shareholders that this company will move back to profitability in the shortest time possible.”
Marion Gathoga-Mwangi, who took over as chief executive at Standard Group in August, assured shareholders of navigating the turbulent media industry and turning around the company.
“We remain dedicated to delivering high-quality content and services to an evolving audience. We do this by innovating and navigating the future with confidence,” she said at the AGM.
“September outlook is extremely positive and we believe that in a short while, maybe in a year or so, we will come back to you in a good position by just taking these innovations a notch higher.”
Ms Gathoga-Mwangi has over 26 years of experience in senior management and has a proven track record in transitioning businesses in turnaround situations across different sectors including healthcare, industrial gas applications, fast-moving consumer goods, commodity, dairy and professional services sectors.
Joe Munene, managing director broadcast, noted that 2023 was characterised by numerous economic uncertainties that included the spillover effects of high inflation seen in 2022, a weakening shilling that dipped to a low of 157 to the US dollar in December and debt-related risks.
Despite the tough operating environment that adversely affected the media sector, some of the reforms that the company had initiated started bearing fruit, resulting in the company significantly reducing losses to Sh722 million from Sh1 billion reported in 2022.
“Despite the adverse operating environment, our business has shown great resilience driven by unwavering commitment to set our audiences and stakeholders,” said Munene.
“Our customers remain at the heart of everything that we do and we are deeply grateful for their loyalty and trust and will continually innovate and improve our product and value proposition.”
“In response to the evolving market landscape, we have undertaken various cost-cutting initiatives to streamline operations and ensure sustainability.
"This included a staff rationalisation process. These measures were necessary to optimise our resources and maintain financial health.”
He added that these actions would ensure operational excellence and would reflect in enhanced efficiency of the company’s systems.
“As the media industry evolves, we will aim to respond much more quickly and effectively. In this regard, we are developing a new strategy aimed at ensuring that the business stays relevant and competitive and is well positioned to take advantage of emerging opportunities of a digital-driven media environment,” said Munene.
Chief finance officer Wesley Kimosop noted that despite the challenging environment, the company managed to make major strides and is set to become profitable in the coming year.
"There are so many initiatives that we have undertaken in 2024 such as innovation, cost management, digital and diversification of our revenue streams,” he said.
