WPP Owner Of Australia’s Biggest Tech PR Companies Reports 2,000%+ Fall in Profits As Clients Walk Away
WPP AUNZ, the owners of some of Australia’s largest tech PR Companies have reported that profits have been smashed by over 2,000% as clients walk away from the giant marketing group.
The Company who own Burson Cohn & Wolfe who were responsible for Huawei’s PR strategies, PPR who handle Alienware and Dell as well as the old Ogilvy PR which was rebranded OPR last year and is responsible for Microsoft and the doomed Toshiba brand along with PR group Hill + Knowlton Strategies has been forced to restructure their Australian operations due to falling sales and declining profits.
Earlier today WPP, has announced a loss of $253.5m for the first half of the calendar year this is a 2,039.8% decline on its net profit of $13.1m for the same period last year.
The Company has been forced to undertake targeted disposals of assets and close underperforming businesses.
They have also merged Companies to reduce their cost base in Australia.
John Steedman, Executive Director and Interim Chief Executive Officer said: “We experienced a mixed performance across our portfolio of companies”
“In the first half, the advertising and media segment faced headwinds due to global and local account losses, and a weak media spend market.”
“In order to deliver integrated solutions to our clients, we are progressing our strategy to simplify the business. In the first half of the year and post the half year end, we have entered into agreements to reduce the portfolio by 20 businesses through closure, merger of brands to enhance services to clients, or sale. This includes the recently announced proposed transaction to sell Kantar.” he said.
On 16 August 2019, WPP announced that it has entered into an agreement to sell 100% of its interests in the Kantar businesses in Australia and New Zealand (Kantar).
The transaction values Kantar at $168 million, equivalent to a multiple of 8.2x Kantar’s 2019 budgeted EBITDA.