STW sees profits rise despite ‘challenging’ market
Connaghan
The STW Communications Group has posted improved earnings and profits for the last financial year despite what CEO Mike Connaghan described as “challenging economic conditions”, driven by a $185m boost in digital revenues for the marketing services group.
Company revenues grew 12.4 per cent to $402.1m for the year ended December 31, with a profit of $87.6m up from $79.3m the previous year. The group’s companies include Ogilvy, DT, Ikon Communications, Spinach, Houston and an interest in the JWT Group.
Connaghan said in a statement to the ASX this morning: “Our full year trading results are pleasing in the face of continued challenging economic conditions. We have delivered strong revenue and profit growth in the second half of the year, underpinned by organic market share gains. We have also made significant progress in accelerating our growth strategy for the future.
“Importantly, STW’s resilient and consistent growth performance highlights the benefits of the diversification and scale that underpins our business model. We have largely held margins while being able to invest significant funds into training, incubating new businesses and developing intellectual property.
“incubating new businesses and developing intellectual property.” That’s a laugh they must of started that on Monday.
‘incubating new business’ – do the place it in a humidity cribb and hope for the best? ‘developing intellectual property’ – are they building houses for uni professors now?