WPP AUNZ says Christmas trading, usually a strong revenue period for the advertising industry, is expected to be weaker than previous years.
The company today reported better than expected earnings for the September quarter, showing a lift from the depths of the pandemic in the three months to June.
However, trading to Christmas is looking subdued. WPP AUNZ says it is currently experiencing weak trading and net sales performance.
Headline earnings before interest and tax (EBIT) for the third quarter hit $24.6 million, outperforming the same three months last year by 15.4%.
The result was driven by better than forecast net sales, operational efficiencies and government subsidies.
Net sales came in at $153.6 million, an improvement on the June quarter but behind the same quarter in 2019 by 14.3%.
This was ahead of the market, where overall agency market bookings were down 27.1%2
“We expect the Christmas period to be more subdued than previous years and this will impact what is usually a strong fourth quarter for our business," says CEO Jens Monsees.
"The market continues to be volatile in response to the pandemic, making it a challenge to predict client spend in certain areas. For this reason, we are not providing specific earnings guidance for the full year.
“We are confident that our long-term strategy is taking us in the right direction to capture more client spend in digital marketing and infrastructure, which we have already seen grow substantially over the last year."
Monsees says WPP AUNZ is a business of strong and diverse brands.
"Whether it be creating a tv ad, building a new website or direct-toconsumer platforms, data strategies, martech and adtech implementation, creating a social media campaign or crisis communications advice, we are working hand in hand with our partners and clients to support them through these uncertain times," he says.
"Our diverse offerings, and excellent client relationships have seen us perform better than the overall market, as measured by agency bookings.
“The exceptional performance in a difficult year is a credit to our people across our brands, who continue to support the many clients we have, as we together, and in close partnership, sail these unchartered waters."
WPP AUNZ's Q3 numbers:
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