Standard Group more than doubles half-year pre-tax profit in the first half of the year

Managing Editor Charles Otieno (left) takes The Standard Group CEO Sam Shollei (right) and Managing Director-Print, Neema Wamae, go through ‘The Nairobian’ on its launch early this year. The paper brings to light the varied lifestyle choices of the city dwellers and highlights what inspires Nairobians from day to day.

By JEVANS NYABIAGE

The Standard Group more than doubled pre-tax profit in the first half of the year, helped by growth in advertising revenue.

The media house, which publishes Kenya’s oldest daily newspaper The Standard and operates a television and radio station, saw its half-year profit jump to Sh223.3 million from Sh107 million in the same period last year.

This represented 109 per cent growth, as the company embarks on expansion strategies to grow revenues.

Print advertising

The Standard Group publishes The Standard on Saturday, The Standard on Sunday, The Counties, Game Yetu  and The Nairobian — the youngest kid on the block that has excited the market with refreshing and mouth watering exclusives.

The company saw total revenue increase by 31 per cent to Sh2.26 billion, helped by the jump in earnings from print and television advertising.

The Group, in a statement signed by the Company Secretary, Mr Ronald Lubya, said circulation business increased by 6 per cent while print advertising grew by 35 per cent over the same period last year.

The Standard Group owns and runs multi-media platforms, which include Kenya Television Network (KTN), Radio Maisha, Think Outdoor Media, Standard Digital and PDS, that features top-notch international magazines.

KTN grew its advertising revenue by a massive 92 per cent while that of Radio Maisha rose by 137 per cent in the same period. The company benefited from campaign advertising in both print and electronic media in the run-up to the presidential election in March.

The company’s borrowing costs dropped to Sh60.5 million from Sh85.6 million, while earnings per share increased by 44 per cent to Sh2.92.

 “The Group’s turnaround strategy unveiled late last year has yielded positive results with business growth and profitability in the first half of the year,” Lubya said.

“The initiatives implemented have contributed to the growth and the Board is optimistic this should continue in the second half.”

Investment plans

And with the economy set to expand by 5.6 per cent in 2013, the company is projecting to record increased growth.

“Barring unforeseen factors, the Board remains optimistic that the current momentum will be sustained in the second half of the year and the results will be realised,” he added.

The Board did not declare an interim dividend as at June 30, 2013 to provide for current strategic investment plans and commitments. The Standard Digital www.standardmedia.co.ke is currently the most read news site in the region. It ranks 7th in Kenya after tech giants Google, Facebook, Yahoo, YouTube and Twitter.

Despite growing usage of the Internet in Africa, traditional media like newspapers are still a profitable business.

To expand its footprint, plans are underway to acquire additional frequencies for Radio Maisha, which would expand its coverage in the next 18 months.