This was despite a 59% drop in newspaper circulation in the lockdown months Kabushenga (left) and Ayota ringing the bell as the New Vision celebrated 15 years since it was listed on the Uganda Stock Exchange. This was in December last year. Vision Group has weathered the COVID-19 storm and is set to diversify into e-commerce and outdoor advertising, senior management has revealed.
The company’s board has recommended a final dividend of sh18 per ordinary share subject to shareholder’s approval at the November 26 virtual Annual General Meeting (AGM).
Robert Kabushenga, the Vision Group managing director, lauded the company’s financial performance and noted that cost cutting measures, expansion of digital platforms and diversification of revenue streams had been fruitful.
Vision Group registered a 2% growth in revenue to sh92b in the financial year 2019/20.
Profit grew from sh4.9b to sh5.2b with earnings per share improving to sh34.8 per share from sh27.8 against strong headwinds due to measures to curb the COVID-19 pandemic that plunged the economy into contraction.
"In this difficult COVID period, we have been able to make a profit and pay back shareholders. We took drastic cost-cutting measures from May to September, to avoid a downturn. We have accelerated our investment in digital platforms and have leveraged our brand equity," Kabushenga said.
"Our team is prepared for future challenges and we will remain Uganda’s top media house," he said.
Kabushenga was speaking at a "facts behind the figures" meeting hosted by the Uganda Securities Exchange (USE). He revealed that the New Vision app has 60,000 downloads, and that the New Vision has 17,000 subscribers as the company deepens its digital footprint. He noted that the company is looking at acquisitions in the outdoor advertising and e-commerce spaces, so as to widen revenue streams. Kabushenga also said the company is negotiating with government to settle debts due to advertising by its agencies.
The managing director revealed that the distribution of learning material on behalf of government during the lockdown had provided a boon to company revenues.
"During the lockdown, we were the only open printer and this sustained us. We now see some recovery, but it is not yet where we want it to be. We hope to see full recovery next year," he said.
Patrick Ayota, the Vision Group board chairperson, noted that despite a 59% drop in newspaper circulation in the lockdown months, door-to-door distribution and digital channels had provided respite and had improved company […]
