Jen Monsees, CEO of WPP AUNZ, has set some aggressive targets for the advertising group this year.
And the business is performing with January numbers ahead of 2020 and 2019. In the current market, most other companies in the media sector would be happy with 80% of the same month the year before.
“That's a very good start,” Monsees told AdNews. “Our new business line is really full, so that gives a lot of confidence for the new year.
“The market is really bouncing back, which is fantastic.”
Monsees this week released full year results, with net sales of $612 million, down 14% but better than the total ad market which was down 15%. Headline earnings before interest and tax came in at $61.9 million, down 32.6%.
Costs of $71 million have been taken out of the company, net debt has been reduced to $17.2 million from $121.4 million in 2019, and shareholders are getting a fully franked dividend of 4.4 cents a share.
This all points to improved profitability this year with a “leaner and more agile” cost base.
And this improved balance sheet gives Monsees access to a large bag of money to fund possible acquisitions. He has an eye on this path to growth as well as his transformation program.
Monsees is upbeat on the net sales outlook, with “good momentum” in recent client engagement, in a company which is already seeing the benefits of his transformation program.
His net sales target for 2021 is for growth of 3%-6%.
Monsees points to the 580 people he hired last year as an indicator of how fast the advertising group is transforming.
“Investing in our strong talent pool and making it more creative and even more digital savvy. This documents how fast we are transforming in our journey,” he says.
That means the local arm of WPP plc, the world’s largest advertising group, has about 4,000 employees.
This month Monsees held a leadership summit with 180 people in the NSW Hunter Valley, some virtually and others in person.
“We had to plan that event three times but it actually worked out fantastically,” he says.
“It’s a different culture. It's vibrant, it’s a ‘can do’ approach. The team really now aligned under one big mission and that gives me a lot of energy back.
“We are ready. We have the right crew. We have a more agile and fast ship to sail. And with the bounce back of the market, not only are we getting some tailwind but we are now winning market share.”
He explains WPP AUNZ’s offering as tech/data implementation integrated with media operations.
“And also fully integrated the content creation,” he says. “These are the three needs to come together if you do modern advertising.
“And then our whole specialties are around this like PR crisis management, lobbying events activation.
“These integrated approaches are a very strong, compelling and seamless offer that no other competitor offers here.”
Monsees says he’s been testing the transformation roadmap in New Zealand where there's a very strong business pipeline, a strong uplift and profitability already.
“The outlook is even better. So, it works.”
Hybrid working has been embraced by staff at WPP AUNZ.
In an employee survey, more than 85% said they can imagine working one or two days from home a week.
“That also helps, in terms of bringing our campuses closer together and under one roof,” Monsees says.
And sometime later this year, WPP AUNZ is expected to be integrated into WPP plc, the UK-based global holding company, and the Australian entity will disappear from the ASX. The move is in line with WPP's global strategy of simplifying its structure.
WPP AUNZ, as a wholly owned subsidiary of WPP plc, would then likely undergo further transformation to fit with the global mission and structure.
Here's how Monsees strategy has been working in New Zealand:
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