Standard Group Records KSh 1.26b Loss, Hopes to Raise KSh 1.5b by Selling Company’s Shares

• The Standard Media Group recorded an increased loss of KSh 1.26 billion in 2023, up from KSh 1.02 billion in 2022
• Subject to shareholder and regulatory approval, the media house announced plans to raise KSh 1.5 billion through a rights issue
• The Nairobi Securities Exchange (NSE) listed firm intends to strengthen its financial sheet as it seeks to capitalise on digital growth potential

The Standard Media Group has registered a KSh 1.26 billion loss for the financial year ended December 2023.

During a similar period in 2022, the media house recorded a KSh 1.02 billion loss, indicating an increase in losses.

Why The Standard Group will sell its shares

Subject to shareholder and regulatory approval, The Standard Group has announced plans to raise KSh 1.5 billion through a rights issue.

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The move is part of an ongoing reorganisation by the media firm in response to a changing operating environment.

The Nairobi Securities Exchange (NSE) listed firm intends to strengthen its financial sheet as it seeks to capitalise on digital growth potential.

“The proceeds will be used to restructure its balance sheet to be able to take advantage of emerging future opportunities for the business in a digital era,” company secretary Victoria Cherotich stated.

Standard Group denies insolvency claims

In March, it dismissed claims of insolvency, clarifying that all its services were on track.

The media company headquartered along Mombasa Road assured its customers, staff and shareholders that it was steadfastly rising despite hostile economic times.

Acting CEO Joe Munene attributed the malicious letter to individuals hellbent on tainting the company’s reputation.

Standard Group is among Kenya’s oldest media houses. Established in 1902, it boasts brands like KTN TV, KTN News, The Standard Newspaper, The Nairobian, Radio Maisha, Berur FM, and others.

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How many months did employees go without pay?

Last year, disquiet rocked the company over delayed salaries, which left employees unpaid for months.

Kenya Union of Journalists (KUJ) secretary general Eric Oduor confirmed that he received distress calls from frustrated colleagues at the media house.

He accused the media house of failing to fulfil its promises despite several meetings, thereby violating journalists’ rights.

The Standard Group cited the harsh operating environment as the main reason behind its financial struggles.

Source: TUKO.co.ke