Wellcom shares spike on earnings upgrade

By Chris Pash | 23 July 2019

Shares in advertising creative production company Wellcom Group jumped today on an earnings guidance upgrade. 

They closed at $5.39, up 3.6%.

The company told the ASX it now expects earnings per share in 2019 to be 30% to 35% higher than the previous year.

Previously the company had expected growth in the range of 10% to 15%.

Part of the reason for the upgraded was a buyout agreement with the landlord of Wellcom’s existing US commercial property lease, giving a net benefit before tax of $6.7 million.

In February Wellcom announced a 5% rise in first half revenue to $79.95 million. After tax profit was up 11% to $6.6 million. 

The Sydney-based Wellcom bills itself as one of the world's leading independent creative production agencies.

 

 

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