KAMPALA, Uganda — Vision Group, Uganda’s leading media conglomerate, has issued a profit warning, signaling a loss position for the half-year ending December 31, 2024.
The warning, issued by Managing Director and CEO Don Wanyama, is in compliance with Rule 38 (3) of the Uganda Securities Exchange (USE) Listing Rules 2025.
According to Wanyama, the company’s financial results for the half-year period will reflect a loss due to a challenging business environment.
“The results of the Company’s earnings for the Half Year ended December 31, 2024 will be a loss position,” Wanyama said in a statement.
Wanyama attributed the financial woes to a sustained decline in traditional media newspaper sales, a core revenue stream, and a significant decrease in advertising revenue across various platforms.
“The company is experiencing a sustained decline in newspaper sales, a core revenue stream, and a significant decrease in advertising revenue across various platforms,” Wanyama said.
Additionally, the company is grappling with increased prices of raw material inputs and operational costs, further straining its financial position.
“The increase in prices of raw material inputs and other operational costs has also affected the company’s financial performance,” Wanyama added.
The profit warning marks a continuation of Vision Group’s financial challenges, which have resulted in declining profits and losses in recent years.
According to industry analysts, the shift in media consumption and the rise of digital platforms have contributed significantly to the company’s financial struggles.
Despite the grim outlook, Wanyama reassured shareholders that the board and management are committed to ensuring improved financial performance of the company.
“The Board and Management are committed to ensuring improved financial performance of the Company,” Wanyama said.
However, the statement did not provide specific details on strategies the company intends to implement to reverse its financial fortunes.
The warning has raised concerns among shareholders and industry analysts, who are now closely monitoring the company’s future performance.
Vision Group’s ability to adapt to the evolving media landscape and implement effective cost-saving measures will be crucial in determining its long-term financial viability.
Discussion about this post