Vision Group, Uganda’s largest multi-media company, last week 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 Shs111.4 billion mark, compared to Shs81.9 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 Shs59.9 billion to Shs88.4 billion.
The company, in a statement, said this was largely due to a Shs24.9 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 Shs19.5 billion in 2021 to Shs18 billion in 2022.
As a result, there was a Shs1 billion growth in gross profit from Shs22 billion last year to Shs23 billion in 2022. Profit before tax was Shs1.7 billion compared to a Shs0.9 billion pre-tax loss in 2021.
Profit after tax was Shs1 billion in the year 2022 compared to a loss of Shs 1 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 Don’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 GRoup’s performance, moving forward.
As a result, the Directors have proposed proposes a dividend of Shs 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.