WPP’s Australia and New Zealand business has reported a before tax profit of $125m, up 3.1% year on year and higher than it had predicted last October.
The business said it was happy with these results as it shows a strong proposition for the market, despite soft market conditions.
It attributed the performance to strong new business in media, advertising and digital, as well as bespoke client teams starting to gain traction in the market.
Michael Connaghan, chief executive officer of WPP AUNZ, said: “Our business has been resilient in soft market conditions, with headline numbers coming in above our revised guidance in 2017. We are focused on strengthening the fundamentals of our business, investing in our people and culture, delivering more for our clients, and improving returns to shareholders in the long term.”
WPP AUNZ said it expected soft market conditions to continue but that it still expected a 3% growth in 2018. To do this it said it would focus on growing organic revenue from new and existing clients.
“In the coming year, our focus is on investing for future growth: in production, data and marketing infrastructure and more importantly, our people and culture. This year we will roll-out and equity staff incentive scheme aimed at retaining the best people in the market,” added Connaghan.
Last year WPP AUNZ merged major production companies to create a supergroup, part WPPs global efforts to consolidate the business.