Standard Group posts a pretax profit of Sh326 million

Standard Group Directors, from left, Acting Company Secretary Victoria Cherotich, Zehrabanu Janmohamed, Robin Sewell, Sam Shollei and Dr James Boyd during the group’s Annual General Meeting at the Standard Group Centre in Nairobi last Friday. Shollei, the company’s CEO, said the group’s performance was robust despite the various challenges facing the business. Standard Group posted a pretax profit of Sh326 million in 2014, representing an eight per cent growth from Sh301 million recorded in 2013, with turnover standing at Sh4.8 billion. [photo: GOVEDI ASUTSA/standard]

Increased growth in advertising and heavy investment in technology have buoyed 2014 earnings of Standard Group Ltd to a four-year high.

This comes even as media companies in the country face immense challenges across print and broadcasting platforms.

The Standard Group posted a pretax profit of Sh326 million representing an 8 per cent growth from Sh301 million recorded in 2013 with turnover standing at Sh4.8 billion. Advertising revenue for the print grew by 8 per cent, radio 66 per cent and television 6 per cent during the same period.

Speaking during the annual general meeting at the Standard Group Centre, on Mombasa Road in Nairobi, yesterday, CEO Sam Shollei said the company's performance was robust despite challenges to the business and regulatory environment.

"The introduction of VAT on newspapers half way through 2013 impacted negatively on the newspaper business and this saw the cover price go up by 20 per cent," he explained. "At the same time, a key challenge that continues to affect the Group's business operations is the protracted tussle with Government over digital migration."