Kenya’s Nation Media Group’s digital division posts 12% growth in profits.
At a time when media companies globally are struggling to stay afloat due to high operating costs and declining revenues, Kenya’s Nation Media Group’s (NMG) digital division grew its profits (not revenues) by 12%. According to the story carried in this week’s edition of the East African Newspaper, the growth was attributed to a content management system, the launch of several web sites, and the initiation of e-newspapers for the groupâ€™s print titles (surprisingly, there is no mention of mobile content or services playing a key role in this growth, unless its captured in the detailed annual report).
I am not sure just how much revenue the NMG digital division pulled in this past financial year but I reckon most of it was from Google AdSense and display ads on its web sites in Kenya, Uganda and Tanzania, as well as (probably) its mobile content and services. On the same note, if NMG could really start leveraging mainstream social media like Twitter and Facebook more aggressively it will better engage its growing digital consumer base in the co-generation and co-distribution their content. This is in spite of the fact that they have built their own social networks like Zuqka and Haiya! which are very much work-in-progress at this juncture.