New Vision Printing and Publishing Corporation Ltd, the largest media house in Uganda, anticipates continued financial losses for the half-year ending December 2023. The persistent challenges in the country’s media market, exacerbated by the prolonged impact of COVID-19 and economic uncertainties, contribute to the grim outlook.
In a communication to the stock market, the Vision Group disclosed that their preliminary assessment indicates a loss position for the specified period. The National Association of Broadcasters attributes the ongoing struggle in the advertising market to companies’ hesitancy to return to pre-pandemic budget levels or reorganize their expenditures, adversely affecting media houses.
Despite a previous loss in the 2022/23 fiscal year, CEO Don Wanyama expressed hopes for a full recovery in the current year. However, he acknowledged that the challenging environment persists due to slow business recovery, disruptions in the supply chain, and reduced government spending.
Wanyama attributed the poor performance to rising prices of printing inputs, particularly newsprint, influenced by global inflation and the conflict in Ukraine. The company’s revenue streams are primarily derived from print, broadcasting (radio and television), commercial printing, and other sources.
The slow recovery from the COVID-19 impact on newspaper sales and advertising revenue, coupled with delayed government payments for educational materials printed during the lockdown, further contributed to the challenging business environment.
In a profit warning, Wanyama emphasized the impact of slow business recovery and disruptions in the global supply chain, affecting newsprint and raw material prices. The company’s strategic goals for 2023/24 include returning to profitability, enhancing staff welfare and productivity, and improving customer engagement.
Despite the current difficulties, Wanyama is optimistic that investments made in the past year will yield positive results in the next financial year, potentially leading to revenue growth and overall company improvement.
