This archive report was first published on 8 August 2019.
Published on August 8, 2019, Scan Group's financial performance for the first half of 2019 has shown a remarkable growth, with the company posting a net profit of KSh250 million, a 27 percent jump from the KSh196 million net profit recorded in the similar period in 2018.
The increase in revenue was largely driven by the acquisition of Kantar TNS, a global data and research company, which contributed significantly to the company's revenue growth of 32 percent, from KSh1.79 billion to KSh2.37 billion.
However, the company's operating expenses also increased by 29 percent to KSh2.1 billion, mainly due to additional expenses from the new business.
Scan Group's interest income declined by 27 percent to KSh116 million in 2019, compared to KSh158 million earned in the first half of 2018, due to a decline in yields.
It is worth noting that Scan Group's parent company, WPP Scan Group, has announced plans to sell a 60 percent stake in its international research, data, consulting, and analytics business – Kantar – to Bain Capital Private Equity, which includes the recent acquisition of Kantar TNS by the Kenyan subsidiary.
As a result, the company has warned its shareholders and general investors that the proposed sale may significantly affect the firm's share price and therefore to exercise caution while dealing in such transactions.
Scan Group's board has decided not to recommend a dividend for the half-year period, but expects improved results in the second half of 2019.
