WPP AUNZ reports headline profit growth in first full results following STW merger
Marketing content and communications group WPP AUNZ has reported a headline profit before interest and tax of $141.6m in its first full-year earnings results presented under the name WPP AUNZ after the completion of the STW-WPP merger in April last year.
The group – with agencies including Ogilvy, DT, Grey, GroupM, VML and Designworks – saw its headline profit grow by 3.5% year-on-year, from $136.9m to $141.6m. Profit after tax was up 5.7% year-on-year from $82m to $86.7m.
The growth numbers would suggest WPP is actually lagging compared to the wider market, those aren’t strong growth results, particularly for Data. PBIT performance is excellent. Clearly the huge cost cutting focus of the mergers has had a dramatic impact. How sustainable is that though?
Ogilvy’s rumoured move to Barangaroo is an unwarranted expense however.
Early days Beans. There’ll be more cost-out this year, a few more “synergies” will become apparent, then it should start to power on a bit more.
Hi Beans:
Any agency group moving their operations from the uninspiring wasteland that is St. Leonards to a busier, brighter more central location should be seen as an investment, not as unwarranted expense. Besides, they had a strong year, so why not?
Lets hope so.. for all the hoop-la of the benefits of this merger, a 5% growth in profits isn’t something to shout from the rooftops.