As you read this, the leading daily is bleeding. News from the New Vision now known as Vision Group indicate that Robert Kabushenga’s departure hurt its coffers. The company is reportedly hurting financially.
That benefits and send off ceremonies given and organized for former CEO of Vision Group Robert Kabushenga saw the company’s administrative costs surge by 10.4%, leaving New Vision in a financial hurting state.
The company’s financial statement for June30, 2021 indicate that administrative costs alone jumped by 19.2% to sh17.8bn from sh14.9bn.
“Administrative costs and other operating expenses increased by 10.4% to sh19.5bn in 2021 from sh17.6bn in 2020. The increase in expenses resulted from the retirement package of the former CEO,” Vision Group noted in the notes of the statement.
Kabushenga resigned his roles in January this year under unclear issues. He joined The New Vision as CEO on January 1,2007. He was replaced by Don Wanyama, who once worked at the same company as a subeditor.
For the period under review , loss after tax was sh1bn in the the year 2021 compared to a profit of sh2 7bn in 2029. The directors do not propose payment of dividend for the year ended June30, 2021. The final dividend proposed and paid for the year ended June30, 2020.
Revenues for the group fell by 10.7% to sh81.9bn. Cost of sales decreased by 11.3% to sh59.8bn. “There was a decrease in material inputs and other direct costs resulting from reduction in volume of business,” the company stated.
The company derived 49% of its revenues from print media, 36% from broadcast, 14% from commercial printing and 1% from other sources. The company’s revenue strategy is associated with these products lines, accordingly the segment information is so presented.
The company is implementing a five-year (2020_2024) Organizational strategy which was adopted, and it is heavily Digital leaning.
