NMG eyes product innovation to spice up income diversification – bestinau

The Nation Media Group (NMG) is banking on product innovation and organisational transformation to enhance its shift to digital content material and diversify revenues from the normal streams.

NMG Chief Govt Officer Stephen Gitagama informed shareholders that the main target going ahead will probably be on two key pillars, product innovation and organisational transformation ‘which is able to allow us to utilise our multi-channel platforms to drive viewers acquisition, engagement and monetization of content material.’

It will increase the corporate’s revenues following entry into the digital paid content material by way of the Nation.Africa model to variety earnings from the normal streams like promoting and gross sales from print newspapers. The corporate may even discover mergers and acquisitions.

“We’re figuring out mergers and acquisition alternatives for merchandise that can assist the Group drive worth in key social influence areas reminiscent of agriculture, youth, atmosphere, training, know-how amongst others,” Mr Gitagama stated on Thursday throughout the firm’s 59th Annual Normal Assembly.

The corporate’s revenues grew by Sh800 million within the 12 months ended December to Sh7.6 billion whereas revenue earlier than tax greater than tripled to Sh730 million in the identical interval from Sh120 million in 2020.

The expansion was attributed to the acceleration of subscription content material and restoration in revenues from tv and print that had taken a success in 2020 within the wake of the Coronavirus-induced financial fall-out.

“Focused price administration measures had been undertaken to enhance operational effectivity and improve productiveness. The Group’s subsidiaries in Uganda and Tanzania additionally witnessed sturdy restoration and recorded improved income,” Group Chairman Wilfred Kiboro stated throughout the AGM.

The corporate may even pay shareholders a last dividend of Sh1.5 per share on issued and paid-up share capital as at thirty first December 2021 in the back of the restoration in revenues.

NMG first experimented with digital information content material subscriptions in February final 12 months and has since gone massive on the shift using on its huge viewers within the regional market.

The corporate launched Nation.Africa model to spearhead the shift to paid on-line content material that features platforms like podcasts, puzzles, video and newsletters.

NMG is eyeing extra share of the Content material Service Provision (CSP) sector whose annual revenues are estimated at greater than Sh10 billion by way of the shift to paid digital content material.

The corporate has additionally registered the ‘Nation Media Basis’ to allow it to deploy sources and entice key strategic partnerships highlighting the agency’s main position in Kenya’s push to realize the Sustainable Improvement Targets.

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