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The East African : March 24th 2014
MONEY AND EQUITY MARKETS MARCH 22-28,2014 GROWING COMPANY Robust business units see NMG post $41.8m profit before tax Di≥ecto≥s ≥ecommended a dividend payment of $0.11 pe≥ sha≥e, the same level as last yea≥ By MUGAMBI MUTEGI Special Correspondent largest media firm, has posted a 20 per cent rise in its dividend payout after it reported a Ksh3.6 billion ($41.8 million) profit before tax for the year ended December 2013. Chief executive officer Linus N Gitahi told investors on Thursday that NMG’s profit before tax grew 2.4 per cent to Ksh3.6 billion ($41.8 million), on an 8.3 per cent revenue growth to Ksh13.4 billion ($155.8 million). NMG directors recom- mended a dividend payment of Ksh10 ($0.11) per share; the media house will pay out Ksh1.9 billion ($22.09 million) to shareholders. Though the dividend per share has been kept at the same level as last year, the company will pay Ksh314 million ($3.65 milion) more to shareholders, having issued a bonus of one share for every five held in 2013. “We are confident about the company’s performance and that is why we are keeping the dividend at Ksh10 ($0.11) per share,” said Mr Gitahi. “However, the total cash payment to shareholders has actually increased by 20 per cent.” Shareholder funds grew from Ksh7.3 billion ($84.8 million) to Ksh8.2 billion ($95.3 million) in the reporting period — a margin of 12 per cent — while the company’s cash pile stood at Ksh4.1 billion ($47.6 million). NMG’s share price stood at Ksh323 ($3.8) at the close of trading on Thursday. This means that the share price has appreciated by 35.7 per cent in the year to date, making it one of the most sought-after stocks at the Nairobi Securities Exchange (NSE). NMG’s performance was driven by robust outcome in ation Media Group (NMG), East and Central Africa’s Business watch Tanzania bourse slows as investors await dividends Activity at the Tanzania bourse slowed in the week ending March 14, as investors awaited company performance announcements and divided payouts. The Dar es Salaam Stock Exchange All Share Index fell 69.78 points, and the Tanzania share index fell by 9.32 points. According to Tanzania Securities Ltd, the activity levels on local and foreign participation during the week fell to 8,565,632 shares, from 9,527,956 shares transacted in the previous week. “We expect the market to maintain medium to high activity levels,” said analysts at Zan Securities Ltd. Co-operative Bank of Kenya pre-tax profits rise 9 per cent NMG partners and stakeholders at the investor briefing at the Nairobi Serena hotel on March 20. Picture: Billy Mutai a number of business units, led by its Kiswahili TV channel QTV whose revenue grew by 117 per cent and 54 per cent operating profit growth. Nation Media Group revenues and profit in $ millions Advertising revenue at Na- tion Newspapers Division grew 12 per cent. “Despite the impact of the general election and the recently introduced VAT, the underlying individual businesses did very well,” said Mr Gitahi. He paid special mention to the performance of Nairobi News, the latest addition to the company’s newspaper portfolio. The newspaper, which was launched in November and targets Nairobi residents, offers informative news from the county. While the circulation of the print version is growing, the newspaper’s website is recording 500,000 unique visits per month. This growth is in step with that realised by the group’s digital division where online advertising went up 27 per cent. “We are investing heavily in NMG share price: The stock has rallied 13 per cent in the past year the digital division since we know it is the next frontier,” said Mr Gitahi. “The performance of this division is proof that the move to digital is extremely beneficial to us and in line with our goal of digital first.” The CEO said the company will remain focused on innovating as well as improving its products already in the market. Mr Gitahi added that the company fully supports digital migration and expects to benefit from the increased footprint for its two television stations NTV and QTV. The stations are available in a third of the current available locations, but “We are investing heavily in the digital division since we know it is the next frontier.” Linus Gitahi, Nation Media Group CEO with digital migration coverage is expected to increase significantly. Additions to NMG platforms in the recent past include the Governors Summit, first aired on NTV in January, and Seeds of Gold, the agri-business magazine recently introduced in Saturday Nation. NationHela, NMG’s pre- paid Visa debit card, now has 14,000 users. Mr Gitahi said plans are un- derway to install a new printing press. In Kenya, the group publishes the Daily Nation, The EastAfrican, Taifa Leo, and the Business Daily newspapers and runs two radio stations, Easy FM and QFM and two TV stations, NTV and QTV. In Uganda, the company operates NTV Uganda while its subsidiary, Monitor Publications, publishes the Daily Monitor newspaper, the Monitor Telephone Directory, and runs KFM radio station and Dembe FM. In Tanzania, the company operates through its subsidiary Mwananchi Communications Ltd, whose print publications include Mwananchi, Mwanaspoti and The Citizen. Co-operative Bank of Kenya reported on Wednesday a 9 per cent rise in pretax profit for 2013 to 10.87 billion Kenyan shillings ($126 million), saying it had widened its income base with more customer accounts and new branches. The lender, which serves co-operatives in Kenya as well as individuals, said its net interest income increased by 19 per cent to 18.6 billion shillings. The bank began operations in South Sudan in September last year. UBA plans to enter Nairobi bourse as first West African firm UBA Kenya Bank has announced that it plans to list on the Nairobi Securities Exchange. The bank’s managing director Tunji Adeniyi said the bank plans to enter the Nairobi bourse in the medium-term, a move that could make it the first West African company to list on the Nairobi exchange. Mr Adeniyi was speaking during the launch of a virtual savings account dubbed Akiba Mkononi. Jubilee Insurance targets expansion to 12 countries 57 Jubilee Holdings chairman Nizar Juma at the release of the firm’s 2013 financial results on March 19. Picture: Salaton Njau Regional insurer Jubilee Insurance Holdings will acquire insurance companies willing to cede a majority stake in the Central, East and West Africa. The insurer targets 12 new countries to add to its operations in Kenya, Uganda, Tanzania, Burundi and Mauritius. Jubilee registered a 10 per cent increase in after-tax profit in the 12 months ending December 2013, thanks to gross premiums which rose to Ksh23.42 billion ($275.5 million) from Ksh20.3 billion ($238.8 million) in 2012.
March 17th 2014
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