GOOD TIDE

Scangroup reports 27% increase in net profit

WPP had confirmed plans to sell the stake in Kantar in October last year.

In Summary

• The firm said an increase in net sales was in line with the forecast and due to the acquisition of Kantar TNS which was only consolidated post June 2018

WPP Scangroup CEO Bharat Thakrar
WPP Scangroup CEO Bharat Thakrar
Image: FILE

Increased sales drove up WPP Scangroup’s net profit to Sh249.85 million, a 27.18 per cent increase for the half-year ending June 30.

The firm’s unaudited results for the January-June period show Scangroup’s net sales grew 32.29 per cent to Sh2.37 billion.

“The increase in net sales is in line with the forecast and due to the acquisition of Kantar TNS which was only consolidated post June 2018,” the board stated.

 

The media and marketing firm reported a 29.28 per cent jump in operating and administrative expenses to Sh2.11 billion which was attributed to the acquisition of the data, insight and consultancy companies- Kantar TNS.

“The results for the six month period ended June 30, 2019 include the results of Kantar TNS whereas the comparative results for the period ended June 30, 2018 do not include the results of Kantar TNS,” the firm said.

WPP Plc, Scangroup’s UK-based majority shareholder, is offloading a majority stake in market-research unit Kantar to Bain Capital Private Equity.

WPP had confirmed plans to sell the stake in Kantar in October last year.

“The transaction may result in material change in the company’s control of Kantar’s business in Africa,” said Scangroup in a cautionary statement.

The firm’s earnings per share increased marginally to Sh0.51 from Sh0.49 the same period last year.

The board did not recommend an interim dividend payout.