Rédaction Africa Links 24 with The Observer
Published on 2024-02-04 09:01:33
The New Vision Printing and Publishing Corporation Ltd, the largest and most diversified media house in Uganda, is expected to continue its loss-making trend, as stated by CEO Don Wanyama. Despite the passage of four years since the outbreak of COVID-19, the media industry is still facing significant challenges. The financial statements for the half-year ending December 2023 are likely to show a loss, according to the company’s preliminary assessment.
The National Association of Broadcasters (NAB) has also noted that the advertising market has not fully recovered from the pandemic-induced shutdown of the economy. Companies are either hesitant to increase their advertising budgets to pre-pandemic levels or are reprioritizing their expenses, which has negatively impacted media houses.
In the previous financial year, Vision Group announced a loss, despite posting a profit in the year before. CEO Don Wanyama had hoped for a full recovery from the effects of the pandemic. However, the challenging environment caused by slow business recovery from the COVID-19 impact on newspaper sales and advertising revenue continues to affect the company’s performance.
Wanyama pointed out that the rise in prices of printing inputs, particularly newsprint, due to global inflation and the war in Ukraine, has contributed to the poor performance of the company. Vision Group’s revenues are mainly generated from print, followed by broadcasting, commercial printing, and other sources. The slow recovery in newspaper sales and advertising revenue across different platforms has been identified as the main contributor to the challenging business environment.
Additionally, the delay by the government in clearing arrears arising from the printing of educational materials during the lockdown has further exacerbated the company’s financial situation. The increase in prices of newsprint and other inputs resulting from global supply chain disruptions has also adversely affected the company’s performance.
Despite the challenges, Vision Group is optimistic about returning to profitability and enhancing customer engagement and satisfaction in the coming year. The company has made several investments in the past year, and they anticipate that these investments will materialize in the next financial year, bringing in new revenue and enhancing the company’s growth. Wanyama expressed hope for a full recovery in the year ahead.
In the face of these challenges, Vision Group is working towards returning to profitability and ensuring the welfare and productivity of its staff. They are also focused on enhancing customer engagement and satisfaction. Wanyama emphasized that the benefits and advantages of their previous investments are expected to yield results in the next financial year. Overall, the company is looking forward to a positive turnaround and a return to profitability in the near future.
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