WPP AUNZ has added its voice to the belief that the June quarter was the trough, the lowest point, of the fallout from the pandemic.
June and July trading for the local arm of the world’s biggest advertising company was profitable and ahead of last year.
“The second quarter is expected to be the low point in net sales, with performance in the second half driven by transformation initiatives and expectations of improved client spend,” says CEO Jens Monsees.
However, he notes the uncertainty in the market as Victoria is hit with a second wave of COVID-19.
WPP AUNZ isn't giving earnings gudiance for the rest of the year.
Martin Sorrell, the founder of digital advertising group S4 Capital, this month told AdNews that the June quarter was a bloodbath for many clients but he believes a low point has been reached.
And the leaders of many of the global holding companies also see the second half delivering upside, followed by a slow build in 2021.
Monsees, in announcing first half results for WPP AUNZ, says the business environment changes almost daily.
But he believes his company can adapt.
“What we are sure of is that digital transformation and maintaining consumer engagement has never been more critical for our clients,” he says.
“In these areas we offer clients the best and most creative end-to-end marketing and communications services.
“We enter the second half of the year with a positive view. Clients continue to invest in marketing and communications. June and July trading months were profitable and ahead of prior year.
“Our business is in good health, with strong cash collection and reduced debt levels versus the previous year. We have the financial stability and flexibility in our business to continue to execute our strategy and drive growth.”
Net sales at WPP AUNZ fell by 21.5% in the June quarter. That translated into a 14.3% to $296 million in the half year:
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