[2008-08-29]  Standard Group circulation rises
The Standard Group’s overall circulation for its main titles grew by a significant 41 per cent in the year to June 30, 2008 compared to the same period last year.

"This means that 41 per cent more people turned to the Group’s titles for news, information and communication needs," said Deputy Chairman and Strategy Adviser Mr Paul Melly on Thursday while announcing the financial results.

In July, the Group re-launched its rethought and redesigned titles, The Standard, The Standard on Saturday and The Standard on Sunday, a move that has seen a further increase in circulation, on the back of good reception by readers.

Advertising revenues for July also grew markedly owing to the quality product from the new printing press and revamped content.

Of interest is the cutting edge design and innovative presentation, including the "flipping" to give sports readers the opportunity to read their favourite news from Page One, a first for Kenya and East Africa.

On Thursday, Melly announced that in the half-year, revenues grew by 9 per cent to Sh1.2 billion, against Sh1.1 billion last year.

The Deputy Chairman noted that the gains were made despite the disruption caused by crisis following the disputed 2007 presidential election.

He said the paralysis adversely impacted advertising revenues in the first quarter of the year, because advertisers were unable to communicate.

"The Group is laying a firm foundation for sustainable growth, by investing in new infrastructure and restructuring its operations," Melly said, citing the Sh1.5 billion put into the Standard Centre, the Group’s new office and industrial complex off Mombasa Road, Nairobi and key infrastructure.

"These investments are growth pillars to sustain the business, as there are tremendous growth opportunities," he added.
The investments, which are being carried out with a significant amount of borrowed funds, and notable amounts generated internally, pushed the company’s pre-tax profit for the period down marginally, to Sh151 million against Sh166 million last year owing to increase in depreciation and finance costs.

Operating costs, which were impacted on heavily by the high rate of inflation and surging fuel prices, increased by 8 per cent to Sh661 million from Sh615 million.

In April, the Board declared a Sh1.10 dividend a share, reflecting a 10 per cent growth compared to the Sh1 last year. The dividend, amounting to Sh80 million, was paid out to shareholders earlier this month.

Melly said a proposed acquisition of minority stake in Baraza Ltd, the Group’s broadcast arm, through a share swap had been deferred, as a result of which there would be no dilution of the Group’s issued shares.

He said despite global increases in newsprint prices, the Group had maintained the cover price of its recently launched bold and captivating newspaper titles.

The Deputy Chairman said KTN continued to be the clear market leader, a fact attributable to the work culture and team spirit embodied in its staff that cannot be replicated.

KTN

"Others can continue to mirror and copy KTN’s content and programming, but the station has its unique characteristics, backed by a dedicated team always out to set new standards in news presentation and programming," said Melly.

He announced that the Group had finalised plans to enter into radio broadcasting, but was yet to acquire frequencies.

He said the Group was making every effort to do so, but expressed concern that the disproportionate allocation of frequencies did not reflect fairness and equity in the marketplace.

"It is important that the legal framework be changed in future to correct this anomaly in distribution of these critical national assets," he said, adding that some media houses had more than their fair share while some individuals were holding some for speculative purposes.

The Deputy Chairman confirmed that the Group’s newspaper titles were already being printed at the new Standard Centre premises, and that it was only the administration wing of the building that was still under construction.

The Group will start relocating operations to the new premises in the first week of December, an exercise expected to be completed by end of January 2009.

Melly attributed the good results to the input of both Executive and External Directors, as well as the recent appointments at Assistant Director level including other critical positions within Editorial.

He also commended the entire staff for their efficiency and dedication, and the Group’s customers for continued support.

Also paying tribute to the staff was the chairman of the Board’s Audit Committee, Mr Jim McFie.

Present were Group Managing Director Paul Wanyagah, Group Finance and Commercial Director Sarvjeet Channa, Operations and Technical Director John Opiyo and other senior managers and editors.



Source: (c) 2008 The Standard