NMG to ride on modern press to boost revenues

Nation Media Group is betting on its state-of-the-art printing press and a revamped digital media to grow revenue.

The new Sh2 billon press, which was commissioned in March, can print 86,000 copies an hour, much faster than its predecessor, allowing papers to reach the market on time and more editions with content that is relevant to specific audiences. 

The modern press can also print 80 full-colour pages, offering advertisers an attractive platform to reach consumers.

NMG now plans to use its growing Internet traffic and 15 other websites to turn its online audiences into steady revenue streams as it continues to revamp its print business with new content.

“The printing press is the most modern in Africa and has several additional features that are attractive to advertisers,” NMG group Chairman Wilfred Kiboro said on Friday at the firm’s annual general meeting in Nairobi.

“This has greatly improved not only the printing quality and increased the colour capacity, but has also significantly contributed to our early market arrival times around the country.”

The upgrade of the print business is being pursued together with an aggressive presence in the digital space.

With more than 70 per cent of Kenyans having access to the Internet, especially through mobile phones, online marketing and web listing sites have become prominent and NMG is seeking a bigger presence in this business segment.

The group also runs an SMS-based news alert subscription service in the region.

“Whilst we must protect our current revenue streams, we are reorganising ourselves with the objective of transforming the Group from a legacy newspaper publisher into a modern Twenty First Century digital content company,” NMG’s Chief Executive Officer Joe Muganda said at the AGM.

“This will entail embracing a digital/mobile first business model; using appropriate technology to offer the consumer a 360-degree communication solution for obtaining real time news, information and entertainment,” he added.

Shareholders approved the payout of a total dividend of Sh10 per share for the year ended December, when the firm’s net profit stood at Sh2.2 billion.

The last upgrade of the printing press was done 18 years ago.

“The new press has also enabled us to increase to five regional editions. I am pleased to inform you that we are already seeing gains from efficiencies coming through to our bottom line in the short time we have been utilising the new press,” Mr Muganda said.