NMG investors poised to reap from share price rise
Posted Friday, March 22 2013 at 02:00
NMG’s share price has posted a 77.3 per cent rise in the past one year.
Nation Media Group’s profit before tax rose by 24.7 per cent last year, driven by strong revenue growth and a decline in operating expenses.
Mr Linus Gitahi, the company’s chief executive, told investors the company closed the year with a Kshs3.5 billion profit compared to the Kshs2.8 billion it made in 2011.
The results, which Mr Gitahi described as “impressive” came on the back of a 9.8 per cent growth in sales to Kshs12.3 billion from the previous year’s Kshs11.2 billion.
NMG’s direct costs dropped by seven per cent, helped by lower prices of newsprint — one of the biggest cost items for the media firm — and a return to a more stable exchange rate regime during the year.
Directors of the company have recommended a 25 per cent increase in the dividend payout to Kshs10 per share from the Kshs8 it paid in 2011.
Mr Wilfred Kiboro, the chairman of the company’s board, said investors will get a bonus share of one share for every five held. Mr Gitahi said the company will in the short-term focus on consolidating its businesses in the region where it has launched a number of products including newspapers, radio and TV stations.