Marketing services firm WPP Scangroup’s net profit for the year to December rose 3.81 per cent on lower operational costs and taxes despite lower revenues.
The firm, which is listed on the Nairobi bourse, reported an after-tax profit of Sh. 477.9 million, from the previous year’s Sh. 460.3 million.
The profitability rise came despite a 14.73 per cent decline in revenues to Sh. 4.12 billion compared to the Sh. 4.83 billion the firm posted in the financial year to December 2016.
“(The performance) is attributable to costs management,” said the firm in a statement. WPP Scangroup reported that its operating and administrative expenses last year decreased 17.09 per cent to Sh3.7 billion compared to Sh4.4 billion posted the previous year, boosting earnings.
The company recently announced that it has reached agreement to acquire a majority stake in Research and Marketing Group Investment Limited, which operates Kantar TNS, a market research agency, with presence in several African countries.