STW Reports $52.6 Million Loss With Profits Down 13 Per Cent

Blank list with Australian money,calculator and pencil on a table
SHARE
THIS



Media communications network STW has reported a loss of $52.6 million in its full-year results, with its underlying net profit after tax falling 13 per cent to $39.6 million from 2014.

The underlying net revenue for the company was up two per cent to $416 million.

The results come as the communications network gears itself up to merge with other mammoth network WPP, where WPP will take a 61 per cent controlling stake.

The yearly figures this morning says the one-off costs for the strategic review – which STW says has been completed – were $10.4 million.

The merger with WPP was announced late last year, following STW CEO Michael Connaghan’s expression of disappointment that the half-yearly results saw net profit drop 22.5 per cent.

Of the full year results, Connaghan said: “In 2015, STW delivered underlying net revenue of $416.0 million, up 1.6 per cent on the prior period, at a respectable operating margin of 18.5 per cent that translated to underlying net profit after tax of $39.6 million, down 13 per cent (2014: $45.6 million). There is no doubt that 2015 was a challenging year for the company with flat revenues and a decline in
underlying earnings.

“We have, however delivered to our guidance provided in August 2015.

“After a disappointing finish to 2014, the company undertook a strategic and structural review during the course of 2015 and made tough decisions to restructure the business. We have implemented a number of initiatives designed to drive deeper engagement with each of our businesses, coupled with stronger financial and management oversight. The changes are designed to allow STW to meet the challenges faced in the current trading environment and to position STW for future growth. As a result we enter 2016 with a clear strategy and path to return to sustainable growth

“As already revealed in the 2015 first half results, STW incurred a number of one-off costs leading to a reported a loss of $52.6 million for the year ended 31 December 2015. This loss is a result of non-cash impairment charges of $81.8 million, and costs related to the strategic review and other one-off costs of $10.4 million. These costs are non-recurring and the restructuring costs relating to the strategic review have largely been incurred in the year.”

While not revealing what’s in store for 2016, due to the merger with WPP, the report notes STW separately is expected to deliver a mid to high single digit increase in net profit.

Please login with linkedin to comment

Latest News

Women In Print Starts New Chapter & Finds New Home
  • Media

Women In Print Starts New Chapter & Finds New Home

Women in Print has re-launched itself this week to take on the year, and future ahead. A refreshed brand, website, calendar and team are leading the way with Women in Print also announcing a new partnership with The Real Media Collective. A new look, new management and new focus – Community, Knowledge, Network and Support […]

Emotive Partners With YouTube And The United Nations
  • Media

Emotive Partners With YouTube And The United Nations

Creative agency, Emotive, and Good Oil Films, is partnering with YouTube and the United Nations to raise awareness around the importance of quality education, which forms part of the UN’s Global Goals for sustainable development.

ScoMo Rules Out TikTok Ban
  • Technology

ScoMo Rules Out TikTok Ban

ScoMo rules out TikTok ban, as Albo releases his latest unicorn, fairy dance video complete with cascading rainbows.

by B&T Magazine

B&T Magazine
Outdoor Industry Unites For Global #OurSecondChance Campaign
  • Campaigns
  • Media

Outdoor Industry Unites For Global #OurSecondChance Campaign

The global Out of Home (OOH) industry has today launched a campaign #OurSecondChance. The campaign asks simple questions about how we can make the most of the positive opportunities that have arisen out of the pandemic. Broadcast on OOH signs around the globe #OurSecondChance is collaboration between World Out of Home Organisation (WOO) and the […]

batyr & UM Take ‘Run For The Herd’ Virtual
  • Campaigns

batyr & UM Take ‘Run For The Herd’ Virtual

With the COVID-19 crisis affecting all crowd-based activities, youth mental-health charity batyr has devised the first-ever Run for the Herd Virtual Festival partnering with media business UM to bring the virtual event to life.  With the City2Surf event in Sydney, normally a big fund-raising opportunity for batyr, postponed this year, batyr has created a virtual event and with the support of UM are encouraging […]

QMS Sport Rebrands As Media Tech
  • Media

QMS Sport Rebrands As Media Tech

Following QMS’ acquisition of TLA Worldwide (Aust) last year, QMS Sport has today announced it will transition to the TLA brand and formally become a business unit of TLA. ‘Media Tech’ is officially the new name for what was formally known as QMS Sport, and will operate alongside TLA’s existing business units that span the […]