Summary:
- New Vision Printing and Publishing Corporation Ltd, Uganda’s largest media house, anticipates continued financial losses for the half-year ending December 2023. The challenges in the media market, worsened by COVID-19 and economic uncertainties, contribute to the grim outlook.
New Vision Printing and Publishing Corporation Ltd, Uganda’s largest media house, foresees ongoing financial setbacks for the six months concluding in December 2023. The persisting challenges within the country’s media market, compounded by the prolonged effects of COVID-19 and economic uncertainties, contribute to a bleak outlook.
In a statement to the stock market, the Vision Group revealed that their initial assessment suggests a negative financial position for the specified period. The National Association of Broadcasters attributes the ongoing struggles in the advertising market to companies’ reluctance to return to pre-pandemic budget levels or adjust their expenditures, negatively impacting media houses.
Despite facing a loss in the previous fiscal year (2022/23), CEO Don Wanyama remains hopeful for a full recovery in the current year. However, he acknowledges that the challenging environment persists due to a sluggish business recovery, disruptions in the supply chain, and reduced government spending.
Wanyama attributes the poor performance to the escalating prices of printing inputs, particularly newsprint, influenced by global inflation and the conflict in Ukraine. The company’s main revenue sources include print, broadcasting (radio and television), commercial printing, and other avenues.
The slow rebound from the COVID-19 impact on newspaper sales and advertising revenue, coupled with delayed government payments for educational materials printed during the lockdown, further exacerbate the challenging business environment.
In a profit warning, Wanyama underscores 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 encompass returning to profitability, improving staff welfare and productivity, and enhancing customer engagement.
Despite the current adversities, Wanyama maintains optimism 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.
