Par Value: 5/-
Closing Price: 19.00
Total Shares Issued: 81731808.00
Market Capitalization: 1,552,904,352
Standard Group reports HY 2020 Earnings
HY Revenue 1.396432b versus 2.403211b -42%
HY Total Operating Costs [1.739493b] versus [2.289148b]
HY [Loss] Profit before Income Tax [416.563m] versus 27.71m
HY [Loss] Profit After Tax [306.129m] versus 19.399m
HY EPS [3.01] versus 0.59
Media is in the cross fire and a -42% H1 Revenue decline says it all.
The Standard Group PLC FY 2019 results through 31st December 2019 vs. 31st December 2018
FY Revenue 4.074042b vs. 4.836030b -15.756%
FY Total operating cost [4.741806b] vs. [4.391050b] +7.988%
FY Other income 140.650m vs. 120.077m +17.133%
FY Finance costs (net) [189.152m] vs. [167.832m] +12.703%
FY [Loss]/Profit before taxation [716.266m] vs. 397.225m -280.317%
FY [Loss]/ Profit after taxation [484.067m] vs. 261.285m -285.264%
[Loss]/ Earnings per share (Basic and diluted) [5.25] vs. 2.41 -317.842%
Dividend per share vs. 0.60 -100.000%
Total assets 4.195946b vs. 4.676133b -10.269%
Total shareholders equity 1.421210b vs. 1.954316b -27.278%
Cash and cash equivalents at the end of the year [71.937m] vs. [151.677m] -52.572%
The Macroeconomic environment was difficult in the financial year 2019 and the media industry was not spared. Regulatory changes which came in the form of increased taxation in the gaming industry and the review of watershed hours had a particularly significant effect. These regulations had a negative impact on advertisement from the entertainment industry. There was a decline in market liquidity as a result of the slowdown in payment of bills and poor economic performance.
Ultimately, the Group had to contend with decreased marketing and advertising spend that resulted in a decline in revenues compared to the prior year 2018.
Despite the challenging environment, the Group invested in new niche products in line with its strategy of creating differentiated and customer centric products. The list of new products includes two new radios stations, Spice FM and Vybez radio two new TV channels, KTN farmers TV and Burudani TV as well as 2 print products Pulser and Travelog. This was in addition to continued investment in digital platforms and in content improvement as it constantly seeks to align with ever changing customer preferences.
The Groups turnover dropped 14% to close at KShs 4.1 billion in 2019 compared to KShs 4.8 billion in 2018 largely due to the decline in performance across key brands.
The Group costs however, rose as a result of investments in new products that are expected to break even in year two, Direct costs increased 21%, closing at KShs 1.46 billion from KShs 1.22 billion in 2018 driven by a rise in newsprint prices due to global supply shortage. Other overheads remained constant at KShs 3.3 billion compared to KShs 3.2 billion in 2018.
The Group closed 2019 at a loss after tax of KShs 484 million compared to a profit after tax of KShs 261 million in 2018.
The Board does not recommend a dividend for the year.
The Board is confident that with continued innovation through the creation of new products and revenue streams, the Group is equipped to withstand both existing and future macro and micro economic challenges.
Whilst the current COVID-19 pandemic is impacting the entire global business environment in 2020, in the long term we are confident that we will return to profitability. The Group will therefore continue to implement its strategic plan, deepen its engagement with customers and offer more niche products and services that are responsive to market needs.
The Standard Group PLC HY 2019 results through 30th June 2019 vs. 30th June 2018
HY Revenue 2.403211b vs. 2.398838b +0.182%
HY Total operating cost [2.289148b] vs. [2.128270b] +7.559%
HY Finance costs (net) [86.353m] vs. [90.507m] -4.590%
HY Profit before income tax 27.710m vs. 180.061m -84.611%
HY Profit after income tax 19.399m vs. 126.043m -84.609%
Basic and diluted EPS 0.59 vs. 1.36 -56.618%
Total assets 4.628538b vs. 4.336386b +6.737%
Total shareholders equity 1.932987b vs. 1.991299b -2.928%
Cash and cash equivalents at the end of the year [232.162m] vs. [345.605m] -32.824%
The Board of Directors is pleased to announce the un audited results for the six month period ended 30th June 2019.
The Group reported a profit before tax of Kshs.27M for the six month period compared to Kshs.180M for the same period in 2018.
However, turnover remained relatively stable at Kshs.2.4B compared to KShs.2.39B for the same period in 2018 despite reduced spending by key advertisers and Government.
Operating costs increased by 8%, mainly due to investments that were made in new products during the year.
Direct costs also increased, largely caused by a 40% increase in international newsprint prices which increased the cost of our print products.
The Group launched a number of new products during the year, which were aligned to its strategic goals.
These included 2 TV channels (KTN Burudani TV & KTN Farmers TV), 2 radio stations (Spice FM & Vybez Radio), 2 monthly magazines (Travelog & Pulser) and a revamped Digger Classifieds section in The Standard Newspaper with a strong digital presence.
Given the recent investments in new products and the ongoing project aimed at transforming our news gathering and dissemination processes, the Board is confident that the Group will be in a position to post positive performances.
The strategic focus towards deepening customer engagements, offering more niche media products and services is expected to broaden the revenue base, with the full benefit to be realised from the year 2020.
Its all about the Pivot just like it is for Nation Media
The Standard Group PLC FY 2018 results through 31st December 2018 vs. 31st December 2017
FY Revenue 4.836030b vs. 4.657488b +3.833%
FY Total operating cost [4.391050b] vs0 [4.942733b] -11.161%
FY Other income 120.077m vs. 184.110m -34.780
FY Finance costs (net) [167.832m] vs. [181.051m] -7.301%
FY Profit/ [Loss] before taxation 397.225m vs. [282.186m] +240.767%
FY Profit/ [Loss] after taxation 261.285m vs. [210.838m] +223.927%
Basic and diluted EPS 2.41 vs. [3.32] +172.590%
Total assets 4.676133b vs. 4.459637b +4.855%
Total shareholders equity 1.954316b vs. 1.865256b +4.775%
Dividend per share 0.60 vs.
Cash and cash equivalents at the end of the year [151.677m] vs. [369.851m] -58.990%
H1 2018 Earnings through June 30th 2018 versus through June 30th 2017
H1 2018 Revenue 2.398838b versus 2.439529b -1.667%
H1 2018 Total Operating Costs [2.128270b] versus [2.315528b] -8.087%
H1 2018 Profit before Tax 180.061m versus 37.297m +382.77%
H1 2018 Profit After Tax 126.043m versus 34.290m +267.57%
H1 EPS 1.36 versus [0.34]
Key Drivers of the above performance were efficiency and costs optimisation for the group.
Trade debtors grew by 10% for the period under review.
Headline Revenue -1.667% but Total Operating Costs -8.087%.
The Standard Group PLC FY 2017 results through 31st December 2017 vs. 31st December 2016
FY Revenue 4.657488b vs. 4.815327b -3.278%
FY Total operating cost [4.942733b] vs. [4.411051b] +12.053%
FY Other income 184.110m vs. 98.918m +86.124%
FY Finance costs (net) [181.051m] vs. [233.719m] -22.535%
FY [Loss]/ profit before taxation [282.186m] vs. 269.475m 204.717%
FY [Loss]/ profit after taxation [210.838m] vs. 198.521m -206.204%
Basic and diluted EPS [3.32] vs. 2.14 -255.140%
Total assets 4.459637b vs. 4.404931b +1.242%
Total shareholders equity 1.865256b vs. 2.076094b -10.156%
Cash and cash equivalents at the end of the year [369.851m] vs. [300.162m] -23.217%
Group's Turnover decline was mainly due to reduction in Print advertising revenue by 17% occasioned by business uncertainty during the electioneering period.
Broadcast division revenue growth +16%
Group's operating costs increased by 12% driven by an increase in direct and overhead costs by 4% and 20% respectively, due to increased cost of election coverage during the period. increase in libel and bad debts provisions, marketing costs incurred during the newspaper redesign process and professional fees.
It is expected that the media industry will generally recover from the harsh political environment witnessed in 2017.
Well we all new Media had been squeezed and now we know how hard the squeeze was.
H1 Revenue 2.439529b vs. 2.220707b +9.854%
H1 Total operating costs [2.315528b] vs. [2.057942b] +12.517%
H1 Finance costs (net) [86.704m] vs. [130.583m] -33.602%
H1 Profit before income tax 37.297m vs. 32.182m +15.894%
H1 Profit after tax 34.290m vs. 32.182m +6.550%
H1 Profit attributable to shareholders [27.570m] vs. 44.177m -162.408%
Basic and diluted EPS [0.34] vs. 0.54 -162.963%
No interim dividend
Total assets 4.564090b vs. 4.315257b +5.766%
Total shareholders equity 2.110384b vs. 1.909755b +10.505%
Cash and cash equivalents at the end of the period [436.691m] vs. [482.481m] -9.491%
Group performance continued its upward momentum for the second year running largely driven by growth in revenues. All business segments except print advertising reported revenue growth, with Radio +58% and TV +33% versus 2016
Print segment revenue was 4% behind 2016 [8% decline in advertisement revenue while copy sales revenue increased by 3%]
The minority interest snaffled up 61.86m.
Headline Revenue +9.854% was better than satisfactory.
Radio +58% TV +33% Print -4.00%
The Standard Group Limited FY 2016 Results through 31st December 2016 vs. 31st December 2015
FY Revenue 4.815327b vs. 4.488399b +7.284%
FY Total operating costs [4.411051b] vs. [4.694449b] -6.037%
FY Other income 98.918m vs. [26.113m] +478.807%
FY Finance costs (net) [233.719m] vs. [163.638m] +42.827%
FY Profit [Loss] before taxation 269.475m vs. [395.801m] +168.083%
FY Profit [Loss] after tax 198.521m vs. [289.603m] +168.549%
EPS 2.14 vs. [2.95] +172.542%
Total Assets 4.404931b vs. 4.355614b +1.132%
Total shareholders equity 2.076094b vs. 1.877573b +10.573%
Cash cash equivalents at the end of the year [300.162m] vs. [450.402m] +33.357%
No interim dividend
Revenue increase was mainly from TV and radio segments
cost optimisation measures put in place continue to bear fruit.
strategic plan whose main focus is to grow broadcast and digital platform segments
Better results but seriously disruptive times in the media Sector
FY Earnings through 31st December 2015 versus through December 2014
FY Revenue 4.488399b vs. 4.782649b -6.152%
FY Total operating costs [4.694449b] vs. [4.399724b] +6.699%
FY Other [cost] income [26.113m] vs. 61.574m -142.409%
FY Finance costs (net) [163.638m] vs. [118.416m] +38.189%
FY [Loss] profit before taxation [395.801m] vs. 326.083m -221.380%
FY [Loss] profit after taxation [289.603m] vs. 220.514m -231.331%
EPS [2.95] vs. 2.57 -214.786%
Dividend per share
Total assets 4.355614b vs. 4.101749b +6.189%
Cash and cash equivalents at the end of the year [450.402m] vs. [279. 332m] +61.243%
The Year 2015 came with great opportunities and achievements for the Group.
During this period the group embarked on diversification of its products and invested in the expansion of its Radio Maisha network as well as its digital platform
Radio Revenue +233% over last Year
Digital +50% over last year
Revenue decline was mainly the result of digital migration challenges This saw TV business segment close at 193m [21%] below last year
in addition the print segment also declined by 11%
The overhead costs increased by 17% to 3.4b from 2.9b
Accelerated depreciation of the analogue television equipment
Write Off of outdoor equipment
One Off reorganisation costs
increased bad debts provision
Poor Earnings notwithstanding the Radio and Digital Strength.
H1 Revenue 2.203064b vs. 2.370593b -7.1%
H1 Total operating costs [2.125695n] vs. [2.105974b] -0.9%
H1 Net finance cost [56.009m] vs. [59.480m] -5.8%
H1 Profit before tax 21.360m vs. 205.139m -89.6%
H1 Earnings Per Share 0.95 vs. 2.68 -64.6%
H1 Total assets 4.192954b vs. 4.171418b +0.5%
H1 Cash and cash equivalents at the end of the period [343.228m] vs. [194.461m] -76.5%
They had already issued this Full Year Profits Warning 28 AUG 2015
Specific challenges business disruptions that resulted from the digital migration process challenges in our business operating environment and the impairment of obsolete company assets.
review of all old debt resulted in the decision to increase our bad debt provisions
Already, the company has initiated an organisational restructuring process. This has also resulted in one off reorganisation costs that will be expensed in 2015
Full Year Revenue 4.782649b versus 4.818808b
Full Year Other Total Operating Costs [4.399724b] versus [4.472584b]
Full Year Finance Costs [net] [118.416m] versus [119.128m]
Full Year Profit before Taxation 326.083m versus 300.68m
Full Year Earnings Per Share 2.57 versus 2.41
Full Year Dividend 50cents unchanged
Print +8.00% Television +6% And radio advertising +66%
Newsprint prices globally have been on the decline
Standard Digital Platform grew Revenues +37%
The Digital Fracas only kicked in after the reporting period.
Revenues declined in fact.
Shares are tightly held.
First Half through 30th June 2014 versus through June 2013
First Half 2014 Revenue 2.370592b versus 2.335509b +1.5%
First Half Total Operating Costs [2.105973b] versus [2.051657b]
First Half Profit before Taxation 205.139m versus 221.335m -7.317%
First Half Earnings Per Share 2.68 versus 2.92
No Interim Dividend
Print advertising business grew by 12% over the same period last year
Television broadcasting segment declined marginally to 380m versus 389m
Rado Business recorded 50% growth
Digital Revenue expanded +82%
Group profitability stood at 205m versus 223m due to provision for delinquent debt in the magazine distribution business.
Radio and Digital expanding fastest.
One of the primary Kenyan media groups which includes The Standard newspaper and Kenya Television Network.
FY Earnings through 31st December 2013 versus through 31st December 2012
Full Year Revenue 4.818808b versus 3.617816b +33.1966%
FY Total Operating Costs [4.472584b] versus [3.306797b] +35.25%
FY Other Income 73.584m versus 112.271m
FY Finance Costs [net] [119.128m] versus [157.926m]
FY Profit Before Tax 300.680m versus 265.364m +13.3085%
FY Earnings Per Share 2.41 versus 2.56 -5.85%
FY Dividend 50cents a share
Circulation grew 6%
Print Advertising +41%
TV Advertising +72%
Group profitability was impacted adversely following the impairment of anologue transmission equipment
Total Provisions of 151m.
I thought these were in fact strong results. Turnover +33.1966% and Provisions of 151m crimped earnings.
H1 Earnings through June 2013 versus June 2012
H1 Revenue 2.262226b versus 1.724689b +31%
H1 Total Operating Costs [2.051657b] versus [1.595360b] +29%
H1 PBT 223.335m versus 106.769m +109%
H1 EPS 2.92 versus 2.03 +44%
referring to Managements Turnaround initiatives
Circulation Business grew +6%
Print Advertising +35%
TV Advertising +92% increase in Revenues
No Interim Dividend
This is a cheap share and Mr. Shollei has made a significant impact.
FY Earnings through Dec 2012 versus Dec 2011
FY Revenue 3.617816b versus 3.174907b +13.95%
Operating Profit 2.243680b versus 1.899205b
FY PBT 265.364m versus 232.097m +14.333%
FY PAT 208.836m versus 219.298m
FY EPS 2.56 versus 2.69 -4.832%
Print Advertising +9.00%
TV Advertising +35%
Provision for libel and Old Debt 138m in 2012
The TV Business is a Stand Out.
I think Sam Shollei has launched a much more Offensive Game.
On a Trailing PE of 13.378, There is some Upside.