Nation Media Group ( NMG) issued a profit warning citing reduced advertising income due to the coronavirus pandemic. In a cautionary statement from the company, NMG Board Chairman Wilfred Kiboro revealed that measures to contain the virus have adversely affected the media groups income.
“The Board of Directors, having reviewed the company’s performance forecast for the current trading period, has determined that the earnings for the financial year ending 31 December 2020, will be lower than the earnings for the previous year by at least twenty five percent.” He stated.
“The outbreak of COVID-19 global pandemic presents an unprecedented risk to the economy in 2020 and possibly beyond… The various response measures rolled out to contain the spread of the novel virus have precipitated a significant decline in the revenues.”
NMG had last month slashed salaries for its employees in a move to cushion the media house from the impacts of the novel COVID-19. The group issued a temporary reduction in the pay for all staff earning a gross monthly income of KSh50,000 and above, ranging between 5pc and 35pc, depending on earnings.
Marketing and advertising revenues have been on the decline for the past five years as audiences shift from print to digital media and with the pandemic, losses were inevitable.
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