Troubled Standard Media Group Posts Sh1.1 Billion Net Loss

Standard Media Group is currently facing significant disruptions that are adversely affecting revenue streams and profit margins in mainstream business sectors. The media group which runs Kenya’s second biggest newspaper, continued to swim in red ink after recording loss after loss. The media group has announced a full year net loss of Sh1.1 billion. This loss came in a financial year that saw the troubled media house record a revenue decline of up to 22.6 percent to Sh1.8 million.

In the same year, the company’s total assets went down by 6.4 percent to Sh3.8 billion. The media house attributed the decline in revenue on reduced government spending and low advertisement business from corporate customers.

“The Group experienced a 23 percent decline in revenue compared to the previous year, largely due to decreased activity from advertising and partnership clients as well as government contracts. Many companies, grappling with tough economic conditions, have reduced their marketing budgets to allocate resources to more critical operational needs, directly affecting our revenue,” the company said.

“Reduced audience engagement with legacy media platforms in 2024 further intensified these challenges. Government debt exceeding seven years has also hindered business operations, complicating efforts to adapt to changing market demands.”

The company plans to offer a discount on its rights issue, pricing the new shares at Sh5.29 each. “As part of the offering, a total of 283,661,120 new shares will be issued at Sh5.29 per share, with the goal of raising approximately Sh1.5 billion,” the company announced.

The financial results came out as the company gears for a rights issue. In the upcoming rights issue, the Standard Media will be looking to raise Sh1.5 billion from shareholders.