WPP Scangroup’s earnings jump 28% to Sh612 million, issues special bonus

Listed advertising and communication firm WPP Scangroup recorded a 28 percent improvement in net profit in 2018 from KSh478 million to KSh612 million. The company whose operations run in 25 African countries credited the good performance to enhanced revenues from the digital and technology segments as well as the newly acquired research business.

WPP Scangroup’s largest market, Kenya, contributed 62 percent of the firm’s revenue. Tough economic conditions in the country saw the firm’s income from advertising, public relations and media slightly decline. Revenue from Nigeria improved from 6 percent to 11 percent thanks to the new business, TNS Kantar research.

The firm’s operating expenses increased marginally to reach KSh3.9 billion. Its total assets grew by 5 percent from KSh13.8 billion to KSh14.4 billion.

The company expects improved earnings in 2019 based on the performance since the start of 2019. Its board of directors announced a final dividend of KSh1 per share and a special dividend of KSh3 per share to be paid upon approval by the shareholders during the annual general meeting. In 2017 KSh0.75 dividend per share was paid out to its investors.