Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Scangroup first-half profit hurt by Nigerian unit

29 August 2013, 13:24

Nairobi - Kenya's biggest marketing firm Scangroup registered an 83 percent drop in pretax profit for the first six months of 2013, hurt by a decision to shrink its operations in Nigeria.

Scangroup, the only listed marketing and advertising company on the Kenyan bourse, said on Thursday its pretax profit fell to 101 million shillings, hit by a 91 million shilling loss in Scanad Nigeria.

The firm met headwinds when it launched its Nigerian outlet last year, after Nigeria's Prima Garnet Communications sued it and Ogilvy Africa for breach of contract and colluding to lock out smaller competitors.

"Whilst we await a decision, we have taken action in the first half to down size the operations to minimise the costs," Scangroup said in a statement.

Scangroup's main shareholder, WPP, said earlier in August it planned to raise its stake in the company to 50.1 percent, from 33.62 percent through the purchase of additional shares.

WPP is set to be overtaken as the world's biggest ad group by the merger of Publicis and Omnicom.

Scangroup, which also operates in Tanzania and Uganda, said its advertising revenue dipped 4 percent to 1.8 billion shillings, but said it expected to recover in the second half.

"We expect to regain the lost ground in terms of revenue and anticipate that the operating profit in 2013 ... will be at similar level as 2012, with the exception of Nigerian operations," the company said.

Its share price was down 1.4 percent to 68.50 shillings by 0728 GMT.

- Reuters



Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Submitted by
George Vodongo
Al Shabaab attack Mandera hotel, ...

A total of 33 non-locals were in the hotel when the assault was launched.  Read more...

Submitted by
Shakila Alivitsa
4 ways to handle your cheating ma...

He is cheating. How do you handle him?

Submitted by
Shakila Alivitsa
Why do men choose second wives?

Why do men choose to have second wives?

Submitted by
Eugene Odanga
Wizkid set for twin Kenyan shows

Wizkid is back in Kenya. For two shows.

Submitted by
Eugene Odanga
Udada women's festival begins in ...

The Udada women's festival has arrived in Nairobi.

Submitted by
Uhuru pardons 2747 death row conv...

President Uhuru Kenyatta has pardoned a number of death row convicts, sending them to life sentences instead. Read more...