Profit Slashed

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SYDNEY, Today: WPP AUNZ has recorded a 68.5% drop in headline profit before tax – from A$26.9m to A$8.5m, and a 61.5% decline in headline earnings before interest and tax – from A$34.6m to A$13.3m – in its half-year results. Headline profit after tax fell 70.4% to A$4.7m.

The dramatic downturn was widely reported in Australia but (typically) the company did not release the info in NZ.

Aussie ad site Mumbrell’s Brittney Rigby said: “The result is better than the potential A$10m loss WPP AUNZ flagged in May, but indicative of the way Covid-19 has eaten away at the regional arm of the world’s largest holding company, as it has the rest of the industry.”

Sales were down 14.3% to A$296m and advertising bookings were down 24%.

“The result is better than the potential A$10m loss the company flagged in May.”

Salary cuts implemented in the second quarter have begun to have an effect, and the group predicts client spend will climb in the second half.

Sydney-based WPP AUNZ ceo Jens Monsees said: “New Zealand’s outpost is now profitable after a loss last year, following a restructure.

“We have a new leadership team in place and our brands have been brought together into the one campus.

“The experience and success in New Zealand so far means we are constantly learning from our progress and improving our broader group strategy.”

WPP AUNZ agencies include Y&R, JWT, Ogilvy, Assignment, Designworks, AKQA, Mediacom, Mindshare, MEC, Ikon, Kantar TNS, and Colmar Brunton.

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