Vision Group profits up 309 percent

By Vision Reporter

VISION Group’s 2010 year end profits have shot up by almost four-fold on the strength of what the chief executive officer described as investments in multimedia “starting to pay off.”

By David Mugabe

VISION Group’s 2010 year end profits have shot up by almost four-fold on the strength of what the chief executive officer described as investments in multimedia “starting to pay off.”

Profit after tax grew by 309% to sh3b in 2011, up from sh734m in 2010, while overall revenue rose to sh61.8b from sh49.9b.

“This year, we have been in a position to give the shareholders a decent return because the investments over the last three years are showing signs of making a return,” said Robert Kabushenga, the Group chief executive officer.

The Group’s directors have proposed a dividend of sh30 per ordinary share.

Overall, earnings per share rose by 290% while commercial printing and advertising registered the highest growth rates at 35% and 27% respectively.

While presenting the financial report to the Vision Group board, the Auditor General John Muwanga described the Group as “well managed and well organised.”

The Group’s accounts were audited by Deloitte & Touché on behalf of the Auditor General.

Kabushenga said the stellar performance was testimony to the high calibre of staff in the Group that has also made it one of the best local companies.
“We have the best team in the media business. This is the reason why every year we keep posting the best performance in the industry,” said Kabushenga.

Most of the Group’s stable of titles and media platform registered growth.

Electronic media grew by 88% with the bigger chunk from TV revenue hitting 272%. Print advertising grew by 12%.

But the rising cost of inputs especially printing materials pushed direct costs by 23%. Loss on investments also rose to sh34m from sh23m.

Kabushenga was, however, cautious that the global economic slowdown and the general hard economic conditions will pose a challenge next year because it was affecting the purchasing power of everybody particularly advertisers.
“Nevertheless, I am confident that we shall remain profitable,” said Kabushenga.

The board has also announced the company’s annual general meeting for November 17 at the New Vision head office in Industrial Area Kampala.

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Vision Group profits up 309 percent