Standard Group PLC has released FY2024 financial results later than expected—on 5th June 2025 instead of the originally scheduled 9th May—highlighting the media company’s struggle to finalize its external audit on time.

The sharp revenue drop reflects intensified competition from digital media platforms, reduced advertising spend across key segments, and a broader slowdown in Kenya’s economic environment that continues to strain traditional revenue streams.

The group’s financial performance also mirrors a worrying trend in profitability. Losses before tax have worsened from KSh 684 million in 2019 to KSh 1.1 billion in 2024—a 61% increase—highlighting structural challenges in aligning costs with shrinking revenues.

Despite efforts to manage operational costs, which decreased marginally from KSh 3,007 million in 2023 to KSh 2,910 million in 2024, the group’s losses remain substantial.

Shareholders’ equity has also eroded sharply, turning negative in 2021 and deepening to KSh -2.2 billion by the close of 2024. The last time the group reported positive equity was in 2020, at KSh 1.12 billion, marking a staggering 296% swing over just four years.

This rapid deterioration in equity signals ongoing financial distress and highlights the need for a robust recapitalization strategy.

Proceeds from this rights issue will be directed toward settling existing liabilities, securing working capital, and supporting both organic and inorganic growth initiatives. The company also plans to accelerate its digital transformation strategy to align with market shifts and drive long-term profitability.