WPP AUNZ Reports Fall In Profit And Sales

WPP AUNZ Reports Fall In Profit And Sales
SHARE
THIS



The holding company reported net sales of $857.3m over six months to the end of 2018, a decrease of 1.4 per cent from the same period in the previous year.

Before tax and interest, earning were $121m, a drop of 12.8 per cent from 2017’s 138.7m, while the group’s operating margin declined from 15.9 per cent to 14.1 per cent.

WPP AUNZ’s EBITDA fell 11.9 per cent to $133.3m, reporting a $9.5m loss after tax, down from the $80.7m profit in the previous period.

Screen Shot 2019-02-22 at 11.04.08 am

Executive director of WPP AUNZ John Steedman (feature image) said: “We are disappointed that the strong performance across many of our businesses has not translated into positive group financial results.

“We have taken quick action to remedy these underperforming segments in our business”.

The group’s advertising and media investment accounted for the company’s profit slides, reporting a 2.9 per cent drop in income to $481.1m, while the group’s EBIT fell 12.7 per cent to 68.6m, with margins easing from 15.9 per cent to 14.3 per cent.

Steedman further said: “We have accelerated the pace in which we make changes to right-size the business and to allocate our capital to the areas of our business with the greatest opportunity to generate profitable growth.

“In the 2018 year, we made significant investments for the future as we combined the strengths of traditional and digital creative agencies of VMLY&R and Wunderman Thompson, created a new Melbourne campus housing 15 agencies, and reshaped the portfolio of companies under the WPP AUNZ Group.

“During the year, we acquired additional WPP related entities and increased shareholdings in existing businesses where we had a minority stake, allowing us to execute on strategic initiatives with greater speed and control.

“Like almost every industry, we too, are facing structural change.

“We have seen rapid digital transformation, economic headwinds, market changes and we know that chief marketing officers, and the C-Suite in general, are seeking agility and responsiveness when it comes to their marketing needs.

“Our clients look to us to help them navigate this new world and to remove any complexity that might be an impediment to growth.

“As a business, our vision is to offer a far simpler structure and to utilise technology and data wherever we can to help our clients talk to, and transact with, their customers and other key stakeholders as effectively and easily as possible”.

Please login with linkedin to comment

results WPP AUNZ

Latest News

72andSunny Unveils First Campaign For Plant-Based Drink Brand Australia’s Own
  • Advertising
  • Campaigns

72andSunny Unveils First Campaign For Plant-Based Drink Brand Australia’s Own

Freedom Foods and 72andSunny Sydney have launched the first advertising campaign for Australia’s Own range of plant-based beverages. The campaign introduces a new visual world and identity for the brand and captures the healthy, positive feeling you get when spending time in nature and when consuming Australia’s Own certified-organic, plant-based beverages. As well as featuring […]

Are You Paying Too Much In Search Marketing?
  • Partner Content

Are You Paying Too Much In Search Marketing?

Are you paying too much for search marketing? Discover the awful truth here. Or, alternatively, look at the invoice.

Partner Content

by B&T Magazine

B&T Magazine
Nine APAC Finalists In One Club’s Young Guns 19 Competition
  • Advertising

Nine APAC Finalists In One Club’s Young Guns 19 Competition

Nine creatives from APAC are among the 94 finalists from 27 countries in The One Club for Creativity’s prestigious Young Guns 19 competition, celebrating international creative professionals age 30 or younger. The finalists from APAC are: Hiu Ching Kung, graphic designer, Hong Kong Lam Ieong Kun, graphic designer, illustrator, indego design, Macau Raxenne Maniquiz, graphic designer, illustrator, Santa Maria (Philippines) Kiyotaka […]

Adflow’s Regional OOH Coverage Expands By 60%
  • Media

Adflow’s Regional OOH Coverage Expands By 60%

OOH transit company Adflow has announced the success of the first phase of its regional expansion program. Adflow’s regional footprint has increased by 60 per cent to now include 65 regional locations. With 9.1 million people living regionally in Australia (growth of 1.1 per cent experienced in the 19/20 Financial year) and most regional centres […]

Freshworks Starts Trading On Nasdaq, Valued at $13.7 Billion
  • Technology

Freshworks Starts Trading On Nasdaq, Valued at $13.7 Billion

Freshworks, a leading software company, has started trading on the Nasdaq Global Select Market, marking an important milestone for the company. The company priced its IPO at US$36 per share (AU$49.76), raising about US$1 billion (AU$1.4B), resulting in a total market capitalisation of AU$13.7 billion  (US$10B). Freshworks, which was founded in India, has strong roots […]

SLIK Announces Four New Key Hires
  • Marketing
  • Media

SLIK Announces Four New Key Hires

Independent creative agency, SLIK, has made significant changes to its full service creative offering with four hires across management, creative and production.

How Retailers Can Maximise Their Results This Sales Season
  • Marketing
  • Technology

How Retailers Can Maximise Their Results This Sales Season

Black Friday Cyber Monday (BFCM) is the biggest player in the holiday shopping game and Google’s most recent research suggests consumer interest for the peak sales season starts much earlier than retailers may realise. The pandemic has fundamentally changed buyer behaviour over peak sales season, with Google suggesting that global consumer interest in Black Friday […]