Why NMG shares rose 9% on Friday
Nation Media Group (NMG) shares jumped 9% on Friday (September 4) to close at Ksh16.95. That compared with 0.14% rise of the blue-chip NSE 20-Share Index and 1.40% drop of the broader market tracker NSE All-Share Index.
NMG shares soar on the launch of flagship Nation.Africa platform
NMG shares jumped as investors cheered the launch of the company’s new flagship digital platform called Nation.Africa. The company launched the new platform on Friday in Nairobi at an event attended by cabinet secretaries Fred Matiangi (Interior) and Joe Mucheru (ICT).
The launch of Nation.Africa is part of NMG’s digital transformation as it seeks new revenue opportunities. The company counts on the new platform to expand its market beyond the East and Central Africa region to the entire African continent.
With Nation.Africa, NMG wants to focus more on selling digital content to readers instead of relying the diminishing advertising sales. American newspapers such as the New York Times and the Wall Street Journal have put up paywall to monetize their digital content as advertising sales dry up.
NMG Chairman Wilfred Kiboro hinted at the Nation.Africa launch that a paywall may be coming. “We will be charging for some content but we assure you that it will be value for your money,” said Kiboro. A paywall system allows newspapers to generate recurring revenue.
NMG share price history in 2020
NMG shares have been under pressure in 2020 as the coronavirus situation has weighed on companies’ profits and caused a broad selloff in the stock market. The shares began at Ksh39.75 and has traded between a high of Ksh40 and a low of Ksh9 this year.
NMG share price history by month shows the stock closed January at Ksh34,90, fell to Ksh27.50 in February, 24.30 in March, 21.35 in April, 18.60 in May, 15.40 in June and 10. 55 in July. But the stock rebounded a little to Ksh13.40 in August.