WPP’s Local Operation Posts Half-year Profit Amid Global Ad Spend Woes

WPP’s Local Operation Posts Half-year Profit Amid Global Ad Spend Woes
SHARE
THIS



WPP has reported a slight increase in profit for the first half of the 2017 calendar year for its Australia and New Zealand division after the group revealed it was experiencing a stunning slowdown in ad spend globally by consumer product companies.

WPP AUNZ’s headline profit was $49.1 million for the six months to 30 June 2017 – up 4.1 per cent on the prior corresponding period – which the group attributed to a disciplined approach to cost management, better connectivity and optimisation, and working capital improvements.

Net sales grew by 0.7 per cent over the six-month period to $410 million, while WPP AUNZ’s net sales margin rose 0.4 per cent to 12 per cent.

Michael Connaghan (pictured above), chief executive of WPP AUNZ, said the results were in line with expectations.

“Despite a flat media market, our strategy of bringing together the best knowledge, thinking and talent to meet our clients’ challenges has served us well,” he said.

“In what continues to be an uncertain global market, we have delivered growth in all our key financial metrics, and made significant progress in cost synergies and operational efficiencies that positions us well to capitalise on future opportunities.

“While we remain cautious on the outlook, due to continuing external headwinds, we now have a good grasp of the levers within our control and the people culture to deliver on our purpose. We are on track to deliver mid-single digit growth in earnings per share for the full year 2017.”

WPP’s local results come after the group revealed it was experiencing dramatic decline in ad spend by FMCG and packaged goods clients due to the rise of Amazon and other e-commerce retailers.

Stocks in WPP plunged as much as 12 per cent on Wednesday after the company again slashed its revenue guidance, which is now expected to be between zero and one per cent for 2017. It’s the slowest growth the company has experienced since the end of the GFC in 2009.

Please login with linkedin to comment

Advertising Standards Bureau WPP AUNZ

Latest News

Aussie Shoe Brand TWOOBS Embraces Anti-Marketing In Push For More Consumer-conscious Shopping
  • Marketing

Aussie Shoe Brand TWOOBS Embraces Anti-Marketing In Push For More Consumer-conscious Shopping

After relaunching in September last year, TWOOBS has become a ‘kinda’ shoe brand by also focusing on making the world a ‘kinder’ place and creating more consumer-conscious shopping. The vegan shoe brand founded by sisters Jess and Stef Dadon changed its marketing approach last year and stopped using social media to push sales the old-fashioned […]

Visit Sunshine Coast Hires New Head Of Marketing
  • Marketing

Visit Sunshine Coast Hires New Head Of Marketing

Highly experienced tourism marketer Kelly Ryan has been appointed to lead the marketing efforts at Visit Sunshine Coast (VSC). During the past 12 years, Ryan has supported Canberra’s tourism industry in senior marketing roles, including as director of strategy and insights as well as director of marketing at VisitCanberra. Most recently, Ryan has been working […]

GHO Sydney And Family Planning NSW Launch ‘Planet Puberty’ Platform
  • Campaigns

GHO Sydney And Family Planning NSW Launch ‘Planet Puberty’ Platform

GHO Sydney has developed a new educational platform for Family Planning NSW to help parents and carers of children with disabilities navigate the changes to their bodies, emotions and social interactions. The project, ‘Planet Puberty’, was made possible through funding from the federal government’s Department of Social Services, and was co-designed with people with disability […]

JCDecaux Announces New Partnership With Bush Heritage Australia
  • Media

JCDecaux Announces New Partnership With Bush Heritage Australia

JCDecaux today announced conservation organisation, Bush Heritage Australia, as its major charity partner for 2021. The partnership is part of a series of ‘social impact’ initiatives the business is launching this year, under the banner of JCDecauxHEART. JCDecauxHEART focuses on three areas of social impact: health and mental health, environmental sustainability, and enriching urban communities. […]

Shameless Duo Michelle Andrews And Zara McDonald Launch New Podcast Exclusive To LiSTNR
  • Media

Shameless Duo Michelle Andrews And Zara McDonald Launch New Podcast Exclusive To LiSTNR

Shameless Media’s Michelle Andrews and Zara McDonald’s latest podcast, The Books That Changed My Life, will launch exclusively on LiSTNR on Tuesday, 15 June. Throughout the series Michelle and Zara will talk with guests including Kevin Kwan, Laura Henshaw, Jock Zonfrillo, Susan Carland, Hamish Blake and Delta Goodrem about the books that have had a profound impact […]

Business and technology concept.
  • Partner Content

Make Your CX Stand Out From The Competition

It's top tips to ensure your CX stands out from the competition. Then again, you could simply plagiarise their stuff.

Partner Content

by B&T Magazine

B&T Magazine
Why The Future of Work Is Hybrid
  • Opinion

Why The Future of Work Is Hybrid

This expert argues the future of work is hybrid. Which is sad news, as B&T'd preferred it was rhumba or the bossa nova.

Champion Launches Pride Campaign And Partnership With Queer Sporting Alliance
  • Advertising
  • Marketing

Champion Launches Pride Campaign And Partnership With Queer Sporting Alliance

In celebration of Pride Month, cult streetwear brand Champion has announced an Australia-and New Zealand-first Pride range, Champions of Pride, and ongoing partnership with the Queer Sporting Alliance. Championing a cause, celebrating community, and aiming to create real change, the capsule collection proudly heroes the Pride colours in a selection of signature Champion tees, iconic […]

UK Based BankiFi Expands To Australia
  • Marketing

UK Based BankiFi Expands To Australia

Following the successful deployment of BankiFi’s technology platform at The Co-operative Bank in the UK, BankiFi has appointed Lloyd Parata to lead their expansion into the Australian Financial Services market. BankiFi’s technology platform ensures banks remain relevant by offering SMEs an innovative solution to operate their business, whilst avoiding common challenges like late payment. Parata, […]

5 Gum Announces New Twitch Partnership
  • Media

5 Gum Announces New Twitch Partnership

Mars Wrigley 5 Gum has partnered with Twitch to launch Team CLUTCH, a team of Twitch streamers who will assemble on for three live squad streams tackling popular games like Fortnite while embodying the brand’s ethos of ‘life happens in 5’. This partnership builds on 5 Gum’s 2020 Twitch activation, and is set to create […]