Don Wanyama returns Vision Group to profitability fueled by a record growth in revenue
MAN OF THE WEEK: Don Wanyama disproves sceptics, returns Vision Group to profitability fueled by a record growth in revenue
Vision
Group, Uganda’s largest multi-media company, this October released its
full-year results for the year ended June 2022, reporting a 36% jump in gross revenue.
The
industrial-area-based Vision Group reported that turnover in 2022 touched the
UGX 111.4 billion mark, compared to UGX 81.9 billion in 2021.
This is the first time; the company is crossing the UGX100 billion mark in its over 35 years of history.
The increase
in revenue, however, came at a stiff cost—the cost of sales increased by 47.7%
from UGX59.9 billion to UGX88.4 billion.
In a
statement, Vision Group, said this was largely due to a UGX24.9 billion for
printing published educational materials/books. However, the company reported
that it was able to reduce administrative and other operating expenses by 7.3%
from UGX19.5 billion in 2021 to UGX 18.0 billion in 2022.
As a result,
there was a UGX1 billion growth in gross profit from UGX22 billion last year to
UGX 23.0 billion in 2022.
Profit
before tax was UGX1.7 billion compared to a UGX0.9 billion pre-tax loss in
2021.
Profit after
tax was UGX 1.0 billion in the year 2022 compared to a loss of UGX 1.0 billion
in 2021.
These are
Don Wanyama’s first full-year results since he was appointed in April 2021.
One of the
key highlights of this period is Wanyama’s ability to rebalance the Group’s
portfolio, reducing reliance on traditional media.
According to
the results, Vision Group derived 34% of its revenue from print media in 2022
compared to 49% in 2021.
27% of 2022
revenue was from electronic media, compared to 36% in 2021. Revenue
contribution from commercial printing remained stable at 14% while for the
first time, 24% of the revenue was from publishing.
Elsewhere in
the Ugandan media industry and across the continent, traditional media has come
under huge pressure from online media and as a result, is losing consumers and
advertisers.
How well he
maintains this rebalanced revenue strategy, moving forward will largely
determine the media group’s performance, moving forward.
As a result,
the Directors have proposed a dividend of UGX 6.46 per share for the
year ending 30 June 2022. The company didn’t pay a dividend for the year ended
30th June 2021.
New Vision
Printing & Publishing Company Limited started business in March 1986 and
was listed on the Uganda Stock Exchange in November 2004.
The Group is
majority-owned by the Government of Uganda which owns 53.3%.
The public holds
the remaining 46.7%.
Before the
pandemic, the company hit UGX91.8 billion and a profit before tax of UGX 4.9 b
in the FY 2019/20. But with the onset of the pandemic, Group turnover for
2020/21 reached an 8-year low of UGX81,924,708.
The Group
made a loss of UGX985.5 million, probably the lowest net earnings ever, since
it was listed in 2004.
The Group
has 7 Newspaper titles (New Vision, Saturday Vision, Sunday Vision, Bukedde,
Bukedde Lwomukaaga, Bukedde ku Sande and Kampala Sun (www.kampalasun.co.ug) and
6 Television Stations (Bukedde TV1, Bukedde TV2, TV West, TV East, Wan Luo and
Urban). It also runs 6 Radio Stations (X FM, Bukedde FM, Radio West, Radio
Etop, Radio Rupiny and Arua One FM).
Vision Group
also runs a commercial printing service, under the brand “Vision Printing”,
publishing services under Vision Publishing and digital publishing under the
brand 'New Vision Digital Experience'.
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