STW Group reports 3.7% EBITDA growth for first half of 2011
STW Communications Group, which operates agencies JWT, Ogilvy and Mindshare, has reported a 6% increase in revenue in the first half of 2011 – but less than 4% growth in earnings before interest, tax, depreciation and amortisation.
CEO Michael Connaghan called the results “solid” and driven almost entirely by organic growth, despite events that have hit the spend of its clients.
“Our first half trading results are solid and we have continued on our growth trajectory in the first half of 2011. Our revenue and profit growth reflects improved performance across all our communications disciplines,” he said.
Net profit before tax of its advertising, media and production companies was up 2.2%, while its diversified marketing and communications assets grew by 1.9%.
“We have achieved an increase in revenue and profit despite the impact of a number of events, well beyond our control, that have had a negative impact on our clients and, as a result, on us, ” Connaghan added.
Connaghan said he expected to see net profits grow by between 5% and 10% for the full year.
Key points from the ASX statement:
- Revenue of $155.9 million, up 5.8% (2010: $147.4 million).
- Earnings Before Interest, Tax, Depreciation and Amortisation of $32.1m, up 3.7% (2010: $30.9m).
- Reported Statutory Net Profit Before Tax of $17.2 million, up 5.7% (2010: $16.3m).
- Earnings per share of 4.81 cents (2010: 4.55 cents), up 5.7%.
- Net debt and future earnout payments of $110.3m (31 December 2010: $76.1m).
- Interim dividend of 3.0 cents per share, fully franked, up 30% (2010: 2.3 cents per share, fully franked).
- Announces an on-market share buyback of up to 10% of the company’s issued share capital.
