(Last Updated On: May 1, 2016)
Top marketing services firm WPP Scangroup reported a 23.4% drop in after tax profit of Ksh478.7 million as compared to Ksh625.5 million the previous year.
Revenues dropped by 2% to Ksh5.02 billion as compared to Ksh5.12 billion in 2014. Scangroup paid higher corporate tax of Ksh396.6 million which is an effective rate of 45% up from 31% due to deferred tax adjustments. 60% of the revenues come from 20 of their top clients. Interest income from financial investments grew by 76% to hit Ksh436.1 million.
Scangroup generates 66% of its revenue from Kenya and has other operations in Ghana, Nigeria, South Africa and Uganda. It has a 68% market share in Kenya, 75% in Tanzania, 31% in Uganda and 27% in Ghana. Growth in Nigeria is dependent on a legal case for the company to get a controlling stake in the local entity.