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Listed book publisher Longhorn has earned Sh68.8 million in profit after tax for the six months ended December last year on the back of selling its publishing rights in the regional markets.
This was an 88 per cent jump from a profit of Sh36.4 million in 2017 even as the firm expects a windfall from the sale of more books under the new curriculum.
“Improved efficiency and sale of publishing rights in the regional markets generated higher margins as compared to the normal books’ sales,” commented Group Managing Director Maxwell Wahome (pictured) in the company’s financials released yesterday.
“The performance of the second half is expected to be positive mainly due to the supply of the competency-based curriculum materials for Grade 1, 2 and 3.”
SEE ALSO :HF Group forecasts FY decline in profits
With the future of hard copy books looking grim, Longhorn has been trying to find a footing in the changing operating environment by shifting focus to digitisation in regional markets.
Monetising digital content largely relies on the difficult task of gaining subscription or using free content which the company can then advertise. For instance, Longhorn has a free online Kamusi from which it makes advertisement revenues.
“The board is pleased by the digital transformation strategy which has led to the repurposing of content in the mobile platform, audio and video forms,” Mr Wahome said. In the past, the firm has considered selling off its head office which would have raked in Sh500 million, although the idea was shot down by shareholders.
The publishing sector has been facing challenges, including the cost of living which affects buying patterns as well as high fuel costs as a result of the recently imposed Value Added Tax which affected printing and loading costs.
The Association of Kenyan Publishers is also trying to battle piracy which has for the longest time eaten into its members’ revenues, with some on the brink of closure.
SEE ALSO :Tough year as firms warn of profit slump
Related Topics
LonghornSh68.8 millionAssociation of Kenyan PublishersValue Added TaxProfit
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