Vision Group posts 2% growth in profits, pays sh494m to shareholders

Nov 24, 2022

According to the 2021/22 financial report, the company’s rise in performance was largely driven by a rise in newspaper circulation and growth in online subscriptions by 104%.

Vision group Board of Directors led by the Chairperson Patrick Ayota(seated third right) and Members of the executive committee led by the CEO Don Wanyama(seated third left) pose for a group photo.

By Edward Kayiwa and Ricks Kayizzi
Journalists @New Vision

Despite a challenging year plagued by a global economic slowdown that has been precipitated by the effects of the COVID-19 pandemic and the Russia-Ukraine war, Vision Group has broken the jinx to post sh1b in profit. 

Speaking at the company’s Annual General Meeting (AGM) held at the company headquarters in Industrial Area, on Thursday, Don Wanyama the Group’s chief executive officer, said earnings per share also improved to sh12.92, from a loss per share of sh12.88, prompting the board of directors to recommend a dividend payout of sh4.46 per share to shareholders.

According to the 2021/22 financial report, the company’s rise in performance was largely driven by a rise in newspaper circulation, growth in online subscriptions by 104%, and a rise in digital revenue by 12% % during the financial year, from sh1.48b to sh1.66b.

The company also posted a 10% year-on-year growth in editorial-driven special revenue projects from sh6.58b in 2020/21 to sh7.27b, as the economy began to pick, recording 4.9% year-on-year growth by the second quarter of the year.

Vision group CEO Don Wanyama gives a speech at the 21st Annual General Meeting at Vision group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

Vision group CEO Don Wanyama gives a speech at the 21st Annual General Meeting at Vision group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

Wanyama said newspaper readership registered a 23% growth in the year under review, while the number of active users on the digital platform recorded a 67% growth to give the company a head start in its annual circulation targets. 

Its market share, he said, grew 10%, driven by its different products such as teachers making a difference, Pakasa, and Best Farmers.

Shareholders listen in at the 21st Annual General Meeting at Vision group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

Shareholders listen in at the 21st Annual General Meeting at Vision group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

“The company will now focus on adequate revenue generation to ensure an inflow of significant returns to the shareholders,” said the Vision Group boss. 

He said in the coming year, Vision Group shall also complete the factory construction at the Namanve industrial area, which is expected to comprehensively enhance both the turnaround time and capacity of the company’s commercial printing arm.

Gervase Ndyanabao, Deputy Managing Director Vision Group gives a speech at the 21st Annual General Meeting at Vision Group offices in Industrial Area on 24 November 2022. (Photo by Miriam Namutebi)

Gervase Ndyanabao, Deputy Managing Director Vision Group gives a speech at the 21st Annual General Meeting at Vision Group offices in Industrial Area on 24 November 2022. (Photo by Miriam Namutebi)

“We shall also occupy additional media spaces in broadcast to increase our earnings in the electronic media segment, as well as support various businesses and organizations to recover from the slump they suffered in the lockdown.” 

Aggrey Mwami, a shareholder of Vision group takes notes at the 21st Annual General Meeting at Vision Group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

Aggrey Mwami, a shareholder of Vision group takes notes at the 21st Annual General Meeting at Vision Group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

Speaking on behalf of the ministers of finance, and that in charge of investment, Matia Kasaija and Evelyne Anite respectively, Chris Mugisha, an official from the finance ministry said it was clear the company’s performance has improved, moving back into profitability with a modest profit of sh1.7b before tax, compared to a loss of nearly sh1b in the year 2021. 

“It has been noted that the turnover has increased by over 36%. On the issue of dividends, the company’s profitability has improved from a loss in 2021/2021 to a profit of sh989b in 2021/2022. As you all know, in the prior year, no dividends were paid out due to the loss position,” he said. 

Chris Mugisha, representing the minister of finance gives a speech at the 21st Annual General Meeting at Vision Group offices in Industrial Area. (Photo by Miriam Namutebi)

Chris Mugisha, representing the minister of finance gives a speech at the 21st Annual General Meeting at Vision Group offices in Industrial Area. (Photo by Miriam Namutebi)

He said that in this year, dividends worth sh494m have been dished out, with a 50% retention to finance revenue and investment projects.

He said in order to continue growing, the comeback and growth of the company is crucial if more profits are to be realized in future.

Shareholders listen in at the 21st Annual General Meeting at Vision Group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

Shareholders listen in at the 21st Annual General Meeting at Vision Group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

“These investments are crucial if the company was to ensure financial stability and profitability in the face of global economic strife. We owe the positive growth to management and board of this company,” he said, commending the company for paying all taxes due in a timely manner.

Shareholders listen in at the 21st Annual General Meeting at Vision Group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

Shareholders listen in at the 21st Annual General Meeting at Vision Group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

URA collects sh19.1b

He said the board advised that in the year 2021/2022, a total of sh19.1b was paid in taxes to Uganda Revenue Authority in tax categories such as VAT, Corporation Tax, withholding tax and pay as you earn. 

He said the declaration and payment of dividends is reflective of the positive growth of the company at a time when many businesses are facing tough economic times, with many having collapsed.

 A shareholder reads the annual report at the 21st Annual General Meeting at Vision Group offices in Industrial Area on 24 November 2022. (Photo by Miriam Namutebi)

A shareholder reads the annual report at the 21st Annual General Meeting at Vision Group offices in Industrial Area on 24 November 2022. (Photo by Miriam Namutebi)

“Government will continue to cultivate an environment that supports local and foreign investments, and Vision Group will maintain market leadership and equitably serve all stakeholders in the coming years,” he said. 

The majority shareholder in Vision Group is the Government through the finance ministry holding 53.3%. The public holds the remaining 46.7%. 

According to the chairperson of the board, Patrick Ayota, the disruptions caused by the second year of a once-in-a-lifetime pandemic, the accelerating effects of climate change, and instability around the globe, have caused uncertainty and untold suffering in the global economy.

Patrick Ayota, Board Chairperson Vision group gives a speech at the 21st Annual General Meeting. (Photo by Miriam Namutebi)

Patrick Ayota, Board Chairperson Vision group gives a speech at the 21st Annual General Meeting. (Photo by Miriam Namutebi)

He said generally, the board is positive for a better performance in 2022/23, basing on the global outlook for increased economic activity. 

He said in spite of projected further escalation of inflation, Uganda’s economy is projected to grow by 6.4% in 2023, which in itself is inspiring.

(left to right) Augustine Tamele, Chief Finance Officer Vision group, Don Wanyama, CEO, Patrick Ayota, Chairperson Board, Gervase Ndyanabao, Deputy Managing director and Edward Akol from the office of the Auditor General at the 21st Annual General Meeting at Vision Group offices in Industrial Area. (Photo by Miriam Namutebi)

(left to right) Augustine Tamele, Chief Finance Officer Vision group, Don Wanyama, CEO, Patrick Ayota, Chairperson Board, Gervase Ndyanabao, Deputy Managing director and Edward Akol from the office of the Auditor General at the 21st Annual General Meeting at Vision Group offices in Industrial Area. (Photo by Miriam Namutebi)

The company’s chief financial officer, Augustine Tamale said there is a huge expectation for the profitability position to strengthen from sh1b to sh2b. 

“We believe that as the economy recovers, we shall also post growth as the businesses recover along. At the moment, they don’t have a lot of media spend, due to the economic situation, but as it improves, we believe that the situation will also get better,” he said.

Shareholders listen in at the 21st Annual General Meeting at Vision Group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

Shareholders listen in at the 21st Annual General Meeting at Vision Group offices in Industrial area on 24 November 2022. (Photo by Miriam Namutebi)

Tamale said the company’s growth in the coming year will also be based on diversification in income, as it sinks investments in education publishing, digital innovations and other non-traditional media spaces.

He said the company will mostly focus on efficient growth by focusing its resources where they are most effective and improving business innovation through creation of new products, categories and experiences for customers.

 (left to right) Augustine Tamele, Chief Finance Officer Vision group, Don Wanyama, CEO, Patrick Ayota, Chairperson Board, Gervase Ndyanabao, Deputy Managing director and Edward Akol from the office of the Auditor General at the 21st Annual General Meeting at Vision Group offices in Industrial Area. (Photo by Miriam Namutebi)

(left to right) Augustine Tamele, Chief Finance Officer Vision group, Don Wanyama, CEO, Patrick Ayota, Chairperson Board, Gervase Ndyanabao, Deputy Managing director and Edward Akol from the office of the Auditor General at the 21st Annual General Meeting at Vision Group offices in Industrial Area. (Photo by Miriam Namutebi)

Additionally, he said, vision Group will enhance technology usage across its platforms by building systems that enable its staff to spend less time collecting data and more time on execution.

“We aim to maintain open and positive dialogue with all our stakeholders, considering their key interests and communicating with them on a regular basis. This will help us build trust and respect and make choices as a business that will help shape the role we play in society,” he said.

Shareholders and Vision group board members at the 21st Annual General Meeting at Vision Group offices in Industrial Area on 24 November 2022. (Photo by Miriam Namutebi)

Shareholders and Vision group board members at the 21st Annual General Meeting at Vision Group offices in Industrial Area on 24 November 2022. (Photo by Miriam Namutebi)

Vision Foundation in offing

Tamale also revealed that the company has already liaised with the Legal Department and the Company Secretary to finalise the registration of the Vision Group Foundation, a vehicle through which the company will attract support funding for journalism.

(left to right) Gervase Ndyanabo, Deputy Managing Director Vision Group, Josephine Olok, Board Audit and Risk committee and Don Wanyama, CEO chat at the 21st Annual General Meeting. (Photo by Miriam Namutebi)

(left to right) Gervase Ndyanabo, Deputy Managing Director Vision Group, Josephine Olok, Board Audit and Risk committee and Don Wanyama, CEO chat at the 21st Annual General Meeting. (Photo by Miriam Namutebi)

He said the company will continue investing in the printing of O-Level textbooks and home study materials, given its gearing ratio for capital structure and liquidity of 15% in 2021/22 compared to 4% in 2020/21.

Vision Group CEO Don Wanyama chats with Happy Jim Mugabi, a shareholder from Hoima at the 21st Annual General Meeting at Vision Group offices in Industrial Area on 24 November 2022. (Photo by Miriam Namutebi)

Vision Group CEO Don Wanyama chats with Happy Jim Mugabi, a shareholder from Hoima at the 21st Annual General Meeting at Vision Group offices in Industrial Area on 24 November 2022. (Photo by Miriam Namutebi)

“This is a low-risk gearing ratio below the optimal gearing ratio of well-established companies that ranges between 25% to 50%. We, therefore, still have sufficient liquidity and retained earnings to adequately fund our investment projects,” Tamale said. 

Capital structure refers to the make-up of the ‘equity and liabilities’ section of a company’s statement of financial position.

(left to right) Vision Group CEO Don Wanyama, Happy Jim Mugabi, a shareholder from Hoima and Patrick Ayota, Board Chairperson chat at the 21st Annual General Meeting. (Photo by Miriam Namutebi)

(left to right) Vision Group CEO Don Wanyama, Happy Jim Mugabi, a shareholder from Hoima and Patrick Ayota, Board Chairperson chat at the 21st Annual General Meeting. (Photo by Miriam Namutebi)

Specifically, it is concerned with the balance between equity and non-current liabilities. The business strategy and investment opportunities are the key determinants in defining the existing and future capital structure of the company. 

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