Scan Group posted KSh250 million net profit in the first half of 2019, a 27 percent jump from KSh196 million net profit booked in the similar period in 2018. The firm recorded a jump in revenues of 32 percent from KSh1.79 billion to KSh2.37 billion.
The jump in revenue was partly driven by the newly acquired business, Kantar TNS, a global data and research company. As a result of additional expenses from the new business, operating expenses also went up by 29 percent to reach KSh2.1 billion.
A decline in yields saw the media company book a 27 percent dip in interest income from KSh158 million earned in the first half of 2018 to KSh116 million in 2019.
Scan group’s parent company, WPP Scan Group, has announced plans to sell 60 percent stake in its international research, data, consulting, and analytics business – Kantar – to Bain Capital Private Equity.
The sale includes the recent acquisition of Kantar TNS by the Kenyan subsidiary. The Nairobi-based media company has warned its shareholders and general investors that the proposed sale may significantly affect the firm’s share price and therefore to exercise caution while dealing in such transactions.
Scan Group’s board did not recommend a dividend for the half year period. The board expects the second half of 2019 will have improved results.