Standard Group PLC has reported a pre-tax loss of Sh1.1 billion for the year ending December 31, 2024, following a sharp 23 per cent decline in revenue to Sh1.84 billion.

The loss, which marks a deepening financial strain, has been attributed to reduced advertising income and prevailing inflationary pressures, despite a modest cut in operating expenses.

The media company’s operating costs declined by 3.2 per cent to Sh2.91 billion, but the savings were not enough to offset the downturn in top-line earnings.

Management, in response, has outlined a three-year restructuring plan aimed at cutting costs and steering the group towards long-term sustainability.

"Operating costs declined by 3 per cent, yet losses deepened," the group's financial report said.

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Other income, however, swung into positive territory at Sh78 million, a turnaround from a loss of Sh8 million the previous year.

In addition, net finance costs were significantly reduced by nearly 89 per cent, falling from Sh89 million to Sh10 million.

Nevertheless, these gains were outweighed by the overall deterioration in earnings, with loss before income tax widening by 52.1 per cent from Sh723 million to Sh1.1 billion.

Comprehensive loss for the year stood at Sh1.1 billion, an improvement from the previous year’s Sh1.3 billion.

Total assets decreased by 6.4 per cent to Sh3.8 billion, while shareholders’ equity more than halved from negative Sh1.1 billion to negative Sh2.2 billion, pointing to deeper structural financial challenges.

Cash and cash equivalents improved marginally, rising by 20 per cent from Sh35 million to Sh28 million.

Standard Group management has outlined a 3-year plan to cut costs and achieve sustainable growth, indicating a strategic response to the continued downturn.