Listed media company, Standard Group, has reported a pre-tax loss of KSh434.4 million for the financial year that ended on 31st December 2020, after a turbulent season. The loss is an improvement from the KSh684 million pre-tax loss reported in 2019.
According to Standard Group, the media industry suffered from the economic downturn caused by the covid19 pandemic. Demand for the company’s products and services fell sharply in 2020 as people cut down on non-essential spending. The group’s revenue dipped by 29% to KSh2.89 billion from KSh4.05 billion in 2019.
Standard Group embarked on a cost-cutting exercise that resulted in a 44% decline in direct costs and a 25% decline in overhead expenses. The overall operating expenses fell by 31% to KSh3.25 billion from KSh4.69 billion the previous year.
The media company generated KSh330.8 million cash inflows from operating activities at the end of 2020, 60% lower than the KSh837.3 million cash inflows from operating activities in 2019. KSh130.4 million was put in investing activities in 2020, compared to KSh124.6 million the previous year.