Standard Group’s half–year earnings to June this year fell 45 percent to 150.7 million shillings from 274.5 million in the same period last year. This was attributed to a tougher economic environment according to a statement by the media company.

Higher interest rates in the period doubled Standard’s debt financing costs, with the company saying that “The interest regime during the half year dramatically changed thereby doubling the borrowing costs from Ksh 48.6M to Ksh 85.6M with respect to investment financing on productive assets.”

The Central Bank of Kenya kept the benchmark interest rate at a record high of 18 percent from December last year to July this year leading commercial banks to adjust borrowing costs upward in the period.

Standard also said that production costs were higher in the first quarter of this year on the back of a weakened shilling last year which raised the cost of raw materials. In October last year the Kenya Shilling depreciated to a record low of 107 Shillings to the US Dollar.

The Group’s revenue however increased 8.6 percent in the six months to 1.7 billion shillings compared to 1.6 billion in June last year.

Despite the diminished profit, the company’s Board was optimistic of full year earnings, saying that “…the performance of the second half will improve and that the projected profit for the year will exceed last year’s position, as the business growth fundamentals remain as strong as ever.”

Last Wednesday, Standard Group’s main competitor the Nation Media Group announced a 23 percent growth in half-year earnings.

The Standard Group is one of Kenya’s biggest multi-media houses, involved in print news, television, radio and more recently outdoor advertising. The Group’s shares are listed on the Nairobi Securities Exchange and had one of their biggest drop on Thursday to close the week at their lowest since June at 22.50 shillings per share.