WPP Aunz (ASX:WPP) share price dips on 32% profit drop

The WPP Aunz (ASX: WPP) share price has slipped 1.43% today off the back of the company’s 2020 earnings results.
The post WPP Aunz (ASX:WPP) share price dips on 32% profit drop appeared first on The Motley Fool Australia. –

asx share price fall represented by lady in striped tshirt making sad face against orange background

The WPP Aunz Ltd (ASX: WPP) share price is underperforming today, down 1.43% at the time of writing to 69 cents a share. By contrast, the S&P/ASX 200 Index (ASX: XJO) is having a pretty good day, up 1.01% to 6,846 points.

The catalyst for WPP Aunz’s slow show today appears to be the earnings report for the full 2020 calendar year that the company released this morning before market open.

WPP Aunz (the latter stands for Australia/New Zealand) is a public relations company that works with a range of clients and offers tailored solutions depending on said clients’ needs.

The company was in the news a few months ago after receiving a takeover offer from its parent company WPP plc (LSE: WPP), for 70 cents a share. That resulted in the WPP Aunz share price shooting up around 85% between 19 November and 18 December.

What did WPP Aunz report this morning?

WPP Aunz reported a mixed bag this morning. The company delivered net sales of $612.3 million, down 14.1% from the $712.5 million reported in 2019.

Likewise, earnings before interest, tax, depreciation and amortisation (EBITDA) fell 32.6% to $61.9 million, down from 2019’s $91.8 million.

Translating into earnings per share (EPS), WPP delivered 4.1 cents per share, down from the 6 cents of EPS in 2019.

That translated into a profit before tax of $53 million, down 31.9% from 2019’s $77.8 million. Profits after tax were $34.9 million, also a fall of 31.9%  from 2019’s $51.2 million.

Surprisingly though, the company’s total dividends for the year came to 4.4 cents per share, a healthy bump from the 2.3 cents per share paid out in 2019. That has a lot to do with the sale of its Kantar assets, which facilitated a special dividend payment of 15 cents per share.

WPP Aunz CEO Jens Monsees had this to say on the results:

Our transformation strategy means WPP AUNZ taps further into growing areas of the market like e-commerce, personalised advertising and digital consumer experience…

We now move into the ‘strengthen’ phase of our transformation strategy…. With our creativity and technology capabilities, we are well-placed to drive growth as the leading creative transformation company in Australia, New Zealand and South-East Asia.

About the WPP Aunz share price

Despite today’s share price moves, the WPP Aunz share price has been a good performer for investors over the past few months.

In addition to being up 81.5% since mid-November, the company was also up around 245% since early April last year.

WPP Aunz has a market capitalisation of $587.98 million at the current share price and a trailing dividend yield of 9.13%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post WPP Aunz (ASX:WPP) share price dips on 32% profit drop appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!