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Nation Media of Kenya Profit Surges 30% on Advertising

Nation Media Group Ltd. (NMG) of Kenya, East Africa’s biggest publishing company, said full-year profit jumped 30 percent as advertising revenue climbed and the circulation of its newspapers increased.

Net income grew to 2 billion shillings ($24 million) or 12.7 shillings per share in the 12 months through December, from 1.54 billion shillings or 9.8 shillings per share a year earlier, Chief Executive Officer Linus Gitahi told reporters today in Nairobi, the capital.

The increase was due to “revenue growth, market share gains and continued innovation and greater contribution by the regional subsidiaries,” Gitahi said. Sales rose 18 percent to 11.2 billion shillings.

NMG, as the company is known, intends to have a “fully- fledged” news bureau in South Sudan within the next two months and plans to operate a television station in Tanzania upon receiving frequencies from the local regulator, he said.

The company will also venture into the money-transfer business in partnership with Diamond Trust Bank Ltd. (DTKL), Gitahi said. The service will be based on the company’s website, he said.

NMG will pay a dividend of 8 shillings, up from 5.50 shillings last year.

To contact the reporter on this story: Eric Ombok in Nairobi at eombok@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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