Vision makes record advertising sales
Jun 24, 2005
<i>THE New Vision</i> advertising revenues for May hit an all-time monthly record of sh1.41b, shattering the previous sh1.16b one realised in May 2003.
By Emmy Olaki
THE New Vision advertising revenues for May hit an all-time monthly record of sh1.41b, shattering the previous sh1.16b one realised in May 2003.
Hard work, improved product coordination and a firm position on top of the market are the main reasons for the growth, advertising executives heard at a party at Nawab Restaurant, Garden City, on Wednesday.
“It has been a competitive year, but The New Vision remains the firm market leader and is still the only newspaper to publicly declare its circulation figures through the Audit Bureau of Circulation,†Chief Executive Officer William Pike said.
“We expect 2005/6 will be a very good year from a profit point of view.
Advertising should be strong and political excitement should push up overall circulation. We have made some cost savings inside the company and are targeting increased overall profits and a net profit margin of over 10%,†Pike said.
He said 2004/5 had also been very good for the company, with an estimated actual net profit before tax of about sh2b.
“This gives our shareholders a very respectable return on capital of 18%. These figures in the United Kingdom would double our share value since analysts consider a price/earning ratio of 12 times for media companies to be on the low side,†he said.
Pike said the company was confident that the advertising department would be able to build on this achievement and move to even greater heights, especially with the new product improvements in the pipeline.
“We are planning to install driers to improve colour quality on our Goss community press within the next three months, at a cost of around $180,000. This will offer better, crisper colour reproduction by eliminating smudging,†he said.
The company also expects to install a computer to plate outputter by Christmas to further improve colour reproduction by eliminating the use of films.
Sales manager Godfrey Mulengi said all the revenue sections of the paper achieved highly, with magazines, regional papers and the website improving each day.
“We guarded our market share and we are going to capitalise on convergence and synergy, where The New Vision has advantage because of regional papers, magazines and a website,†he said.
THE New Vision advertising revenues for May hit an all-time monthly record of sh1.41b, shattering the previous sh1.16b one realised in May 2003.
Hard work, improved product coordination and a firm position on top of the market are the main reasons for the growth, advertising executives heard at a party at Nawab Restaurant, Garden City, on Wednesday.
“It has been a competitive year, but The New Vision remains the firm market leader and is still the only newspaper to publicly declare its circulation figures through the Audit Bureau of Circulation,†Chief Executive Officer William Pike said.
“We expect 2005/6 will be a very good year from a profit point of view.
Advertising should be strong and political excitement should push up overall circulation. We have made some cost savings inside the company and are targeting increased overall profits and a net profit margin of over 10%,†Pike said.
He said 2004/5 had also been very good for the company, with an estimated actual net profit before tax of about sh2b.
“This gives our shareholders a very respectable return on capital of 18%. These figures in the United Kingdom would double our share value since analysts consider a price/earning ratio of 12 times for media companies to be on the low side,†he said.
Pike said the company was confident that the advertising department would be able to build on this achievement and move to even greater heights, especially with the new product improvements in the pipeline.
“We are planning to install driers to improve colour quality on our Goss community press within the next three months, at a cost of around $180,000. This will offer better, crisper colour reproduction by eliminating smudging,†he said.
The company also expects to install a computer to plate outputter by Christmas to further improve colour reproduction by eliminating the use of films.
Sales manager Godfrey Mulengi said all the revenue sections of the paper achieved highly, with magazines, regional papers and the website improving each day.
“We guarded our market share and we are going to capitalise on convergence and synergy, where The New Vision has advantage because of regional papers, magazines and a website,†he said.