WPP AUNZ revenue fell 13.2% to $726.17 million for the full year to December but the outlook for sales continues to improve as does profitability on the top of cost cutting.
Headline profit fell almost 32% to $34.86 million.
Net sales were down 14.1% to of $612.3 million from $712.5 million in 2019, better than total ad market spend which was down 15%. The result was slightly ahead of guidance of between $607 million and $610 million.
WPP AUNZ returned to paying dividends, a fully franked 4.4 cents a share.
Operating costs were cut by $71 million in 2020 and the benefit in 2021 is expected to be $65 million. The company also receievd $13.6 million from government subsidies to support jobs.
The company says there has been good momentum in recent client engagement, which flows into positive expectations of net sales improvement this financial year.
CEO Jens Monsees says he is extremely proud of his team.
"We are working in new ways, both as a result of the pandemic environment, but also because of the transformational initiatives we have rolled out to bring together our businesses more closely and collaboratively to better service our clients," he says.
“Our transformation strategy means WPP AUNZ taps further into growing areas of the market like e-commerce, personalised advertising and digital consumer experience. Clients are looking to us to provide them with the skills, creativity and ideas they need to match the changing needs of their consumers.
“The feedback from our clients on the new ways we are serving them has been fantastic and makes us proud and confident in our own growth agenda in the region.
“We now move into the ‘strengthen’ phase of our transformation strategy. This is about embedding a strong foundation in our business to support growth. Our focus is on clients, talent, tech, solutions and operational excellence.
“With our creativity and technology capabilities we are well-placed to drive growth as the leading creative transformation company in Australia, New Zealand and South-East Asia."
The 2020 numbers:
And segment results:
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.