Standard Group Limited Records 8% Decline in Revenue amidst Challenging Business Environment, but Optimistic about Future Profitability with 22% Cost Reduction Measures

Published On: August 30, 2023Company: Standard Group Limited (SGL.ke)
What measures did Standard Group Limited take in response to the challenging business environment?
Standard Group Limited took measures to rationalize costs, particularly in staff costs, resulting in a 22% decrease in total costs. The group also began a transformation process to innovate their range of media products and meet changing client needs. It remains hopeful about improving market conditions and restoring profitability through revenue growth and operational cost reduction.

Summary

  • The business environment for the Standard Group Limited was difficult due to global uncertainties, drought, geopolitical tensions and tightening monetary policies.
  • Inflation rates in the country averaged at 8.5% during this half-year period, escalated by increases in food and fuel prices.
  • The Kenyan Shilling depreciated by 19% compared to a similar period last year.
  • Total group revenue declined by 8% to Kshs.1.26 billion due to reduced advertising spending as a result of the daunting economic conditions.
  • In response to these conditions, the group undertook cost rationalization measures, especially in staff costs, leading to a 22% decrease in total costs.
  • The group suffered a loss before tax of Kshs.147 million, yet an improvement compared to a loss of Kshs.429 million in the prior year.
  • The group remains optimistic about improving market conditions as the government introduces policy changes aimed at strengthening the economy.
  • The group is implementing a transformation process to meet changing client needs through innovative media products and intends to continue rationalizing costs to operate more efficiently.
  • There is renewed confidence in resuming profitability as efforts to grow revenues and reduce operational costs continue.

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About Standard Group Limited (SGL.ke)

Standard Group Limited is a major publishing and broadcasting company in Kenya with interests in print, radio and TV and digital media. Well-known brands include The Standard newspaper; the second-largest national newspaper and the flagship product of the publishing group; Kenya Television Network (KTN), a private, independent TV station; KTN News, a 24-hour news channel; Bamba TV; operated via Lancia Digital Broadcasting and offering international and local channels; Radio Maisha, a radio station offering listeners a wide selection of news, entertainment and current affairs programmes; The Nairobian, a leading weekly newspaper; Standard Digital, a leading online publishing platform; Think Outdoor, an outdoor advertising agency placing billboards in strategic sites. The company was founded in 1902 and its head office is in Nairobi, Kenya. The Standard Group Limited is a subsidiary of S.N.G Holdings Limited. Standard Group Limited is listed on the Nairobi Securities Exchange

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