By James Anyanzwa
The Standard Group has announced an ambitious investment plan to grow revenues and expand its market share.
The company, publishers of The Standard newspaper, Nairobian, Game Yetu and the operator of KTN and Radio Maisha, also plans to take advantage of the opportunities offered by the county governments to further shore up its business.
Its revenues jumped by 14 per cent to hit Sh3.61 billion last year compared to the prior year.
The Group’s Chief Executive Officer Sam Shollei said the company would be expanding its revenue generating capabilities and introduce product offerings that resonate well with market needs.
Mr Shollei emphasised the need to scale-up investment in human capital, which he reckons has seen the company’s key brands, such as KTN, make big gains in the market.
“We want to champion public interest and execute peoples’ agenda. We will do that passionately. We want to have a media house that becomes the watchdog of the society,” he told shareholders in Nairobi yesterday adding that “advertisers follow successful plans.”
He stressed that the Group’s platforms would continue to be balanced and fair in its coverage.
He said the company is doing everything possible to improve the quality of its editorial content, improve productivity and ensure commercial teams are well equipped with the right tools and knowledge.
“We must make sure we always tell the correct story without adding things that distort the story. Our business is growing significantly and we want to be there (counties) with the people of Kenya to tell the stories of their counties,” he said.
He said plans are under way to acquire additional frequencies for Radio Maisha, which would expand its coverage in the next 18 months.
111th year in busines
Shollei underscored the role of the media in addressing governance issues, but raised concern over the economic environment in the country and the high level of unemployment.
He was was speaking during the Group’s 95th Annual General Meeting (AGM), which also marked the company’s 111th year of operation.
During the event, the shareholders approved the re-election of Mr Samuel Lerionka Tiampati, Mr Francis Munywoki and Mr Orlando Lyomu to the company’s board of directors.
Chairman Robin Sewell said the company’s new management has initiated a number of key strategies that should help realise accelerated growth for the business, adding that the programme of rolling out these initiatives will continue in 2013.
“The development and training of our employees is vital to the success of our business and I’m delighted that there have been significant efforts towards the creation and retention of an exceptional team,” he said.
The Group posted a 14 per cent rise in full-year pre-tax profit for 2012 buoyed by increased circulation and advertising. Its profit before tax (PBT) rose to Sh265.36 million, up from Sh232.09 million in the previous year, while total revenues climbed 14 per cent to Sh3.61 billion, up from Sh3.18 billion in a similar period.
According to the company’s audited financial statements, circulation business grew by 12 per cent, while print advertising expanded by nine per cent over the previous year. TV advertising business also grew significantly to register 35 per cent increase in the year under review.
Revenue reserves grew 17 per cent to Sh1.16 billion from Sh996.34 million, while total shareholders equity advanced 11 per cent to Sh1.83 billion from Sh1.65 billion.
The company said it would pay no dividend so as to fund its investment plans. The firm said it expects to improve its performance and expand the business this year after peaceful polls on March 4.
