New Vision Printing and Publishing Company has warned shareholders that it expects to post another annual loss for the financial year ending June 30, 2026, dealing a setback to management’s ambitious turnaround strategy that had projected a return to profitability. The profit warning, issued through a notice to shareholders and the market, means Uganda’s largest media house is on course to record a third consecutive annual loss after management earlier forecast a net profit of 5.27 billion shillings for the year.
Chief Executive Officer Don Wanyama attributed the expected loss to a difficult operating environment marked by declining newspaper sales, weaker-than-expected advertising revenue and rising production and operating costs. “The main contributor to this loss position is the challenging business environment,” Wanyama said, citing continued pressure on newspaper circulation and advertising revenue across the company’s platforms, alongside increasing prices for newsprint, ink and other operational inputs.
The announcement marks a sharp reversal from the optimism expressed last year when Board Chairman Patrick Ayota told shareholders the company expected to rebound after posting a 9.7-billion-shilling loss in the 2024/25 financial year, an improvement from the 10.2-billion-shilling loss recorded the previous year. The management had projected revenue would grow by 14 percent to 99.3 billion shillings, supported by stronger advertising, increased commercial printing and investments in digital transformation.
The company also anticipated benefiting from increased political advertising ahead of Uganda’s 2026 general elections, with political parties and candidates expected to boost spending on newspaper advertisements and broadcast programmes. However, the expected recovery failed to materialise.
Although New Vision returned to a modest half-year profit of 220.8 million shillings after reducing production costs, overall revenue declined by 4.2 percent to 40.8 billion shillings, suggesting that cost-cutting rather than stronger business performance drove the temporary improvement. As the second half of the financial year progressed, advertising revenue remained under pressure while operating costs continued to rise, eroding the gains made earlier in the year.
The latest setback highlights the broader structural challenges confronting traditional media companies as readers and advertisers increasingly migrate to digital platforms. Financial statements show the company continues to operate with a cost-to-income ratio of about 115 percent, meaning its operating expenses exceed its total income.
Print circulation has continued to decline, with newspaper sales contributing only about 8.85 billion shillings, or roughly 11 percent of total revenue, during the previous financial year.
Audit Bureau of Circulations data also showed declining sales of both the New Vision and Bukedde newspapers, forcing the company to reduce print volumes. Advertising remains the company’s largest source of income, accounting for about two-thirds of total revenue, but traditional platforms continue to weaken.
Print advertising generated about 23 billion shillings in 2024/25, while television advertising earned 15.7 billion shillings after declining by approximately 4.5 percent. Radio stations, including, XFM Bukedde FM, Radio West, Etop FM and Radio Rupiny, have experienced the steepest decline, with advertising revenue falling by more than 23 percent in recent years.
Digital advertising remains the fastest-growing segment, increasing from 811 million shillings in 2023/24 to 1.43 billion shillings in 2024/25. However, analysts say the growth remains too small to offset continued declines in print and broadcast revenue.
Government, which owns a controlling 53.3 percent stake in the company, has supported New Vision through several interventions, including directing government advertising and printing work to the company and subscribing to 25 billion shillings worth of preference shares in October 2024.
According to Ayota, the capital injection helped address immediate liquidity pressures, finance the installation of a new eight-colour printing press at Namanve, upgrade digital broadcasting infrastructure and expand outdoor advertising operations. He said the investments form part of the company’s 2025–2028 strategic plan aimed at diversifying revenue through new businesses such as media agency services, courier operations and outdoor advertising.
While these investments are expected to strengthen the company’s long-term competitiveness, the latest profit warning suggests they have yet to reverse the financial pressures facing Uganda’s largest media house. The management is expected to release its audited financial results at its Annual General Meeting in August, where shareholders will receive details of the full-year performance and management’s plans to restore profitability-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
