The New Vision Printing and Publishing Corporation Ltd, grappling with financial struggles, acknowledges that these challenges are likely to endure, according to CEO Don Wanyama. Despite four years passing since the onset of COVID-19 and widespread layoffs in the media industry, the landscape remains arduous.
As the largest and most diversified media house in the country, Vision Group foresees its financial statements for the half-year ending in December 2023 indicating a loss. In a communication to the stock market, the company states, “Based on the preliminary assessment of the company’s performance, the results of the company’s earnings for the half year ending December 31, 2023, will be a loss position.”
The National Association of Broadcasters (NAB) points out that the advertising market post-pandemic remains sluggish, with companies slow to return to pre-pandemic budget levels or reallocating expenses, adversely affecting media houses.
Despite expressing hopes for recovery in FY 2022/23, CEO Don Wanyama admitted in November that losses were incurred, revealing a persistent struggle against the lingering effects of the pandemic.
Wanyama attributes the poor performance to the rise in prices of printing inputs, particularly newsprint, due to global inflation and the war in Ukraine. The company’s revenues are primarily derived from print, followed by broadcasting (radio and television) outlets, commercial printing, and other sources.
The challenging business environment, resulting from slow recovery from COVID-19 impacts on newspaper sales and advertising revenue, is identified as the primary factor for the financial loss. The state-majority-owned company also cites government delays in settling arrears related to the printing of educational materials during the lockdown as a contributing factor.
Global supply chain disruptions leading to a surge in newsprint and input prices have further impacted the company’s performance. In outlining the organization’s strategy for 2023/24, Vision Group’s board chairman, Patrick Ayota, focuses on returning to profitability, prioritizing staff welfare and productivity, and improving customer engagement and satisfaction.
CEO Wanyama expresses optimism that investments made in the past year will yield positive results in the coming financial year, anticipating a full recovery ahead. Despite ongoing challenges, the company remains committed to navigating the complex media industry landscape.
