Media and marketing group WPP AUNZ has reported flat half-yearly sales but an improved profit margin after realising cost synergies from mergers within the group.
Sales grew 0.7% to $410 million, reflecting a flat media market and broadly in line with global results.
The group has carved out $15 million in cost by merging creative agencies The White Agency and Grey as well as DT and AKQA.
The group’s net profit before tax was up 19% to $41.9 million compared to H1 2016.
“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,’ WPP AUNZ CEO Michael Connaghan said.
“In what continues to be an uncertain global environment, we have delivered growth in all of our key financial metrics and made significant progress in cost synergies and operational efficiencies that positions us well to capitalise on future opportunities.”
Aside from cost synergies from the merged businesses, the group has moved three WPP businesses into a new Sydney HQ, which will $1.6 million in cost savings.
Another merger that is due to take place early next year is the combination of GroupM media agencies Maxus and MEC, which recently revealed its new leaders.
WPP AUNZ said it is on track to deliver mid-single digit growth to earnings per share.
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