RECORD YEAR FOR GROUPM: DKK 80 MILLION IN GROWTH
- July 17, 2022
- Jonas Hemmingsen
The group experienced impressive top and bottom growth, and when Jonas Hemmingsen explains the reason for success, a little and very average word plays a big part.
80 mio. DKK. That is how much GroupM grew with in 2021, and it is a growth so significant, that the group is a clear candidate to top the list of the largest nominal growth amongst all agencies. This alone positions the group amongst the 20 biggest agencies across agency types.
Amongst media agencies, GroupM is in a league of its own. The group is close to three times as large as number two on the list. But the impressive numbers of the financial statement don’t stop here – GroupM has also strengthened the bottom line significantly. Out of the 80 million DKK growth, just under 25 million DKK ended up on the bottom line, thus approaching a doubling. This means that the group has doubled the profit margin to 10 in two years and in 2021 can register a profit of approx. 55 million DKK.
GroupM’s chief executive, Jonas Hemmingsen, can look back on a record year in which almost everything has played out to the group’s benefit.
When explaining the development, he highlights the importance of saying “no”.
“I think we’ve turned down as many as 15 pitches in the last year or two, and we’ve done that for several reasons. Pitches can partly wear on an organization, and therefore must be compared with the commercial potential. If it is not interesting enough, it makes more sense to omit it. By saying no, we have been able to strengthen our commercial mindset and increase the focus on our delivery to our existing customers,” says Jonas Hemmingsen and continues:
“At the same time, it allows us to invest in our employees and our culture, so that we can become a more attractive workplace. When we can create better conditions for our employees, it strengthens our organization and customer relationships, and increase earnings from our projects.”
In relation to this, Jonas Hemmingsen emphasizes transparency.
“Of course, we want to make money from our work, and our customers recognize that as well. That’s why we have a lot of focus on a kind of reconciliation of expectations, so that we we can create the most value for customers where they are prepared to pay for it,” says Jonas Hemmingsen.
Besides, this year’s financial statement stands out due to a strong performance from the two agency brands, Mediacom and Wavemaker.
“We now have three brands that are doing extremely well. Mindshare has been very stable for several years and therefore does not differ so much in 2021. On the other hand, Wavemaker and Mediacom have advanced significantly. Amongst other things, this is due to two strong managements, where Jesper Jørgensen has been responsible for a fantastic turn-around at Mediacom,” says Jonas Hemmingsen.
Jonas Hemmingsen has positive expectations toward the financial statement of 2022.
“As it looks now, I expect growth close to the 2021 level. We probably cannot quite live up to the same development on the bottom line. We have spent a lot of money on hiring and the uncertain economic times can result in increased costs,” says Jonas Hemmingsen.
Key figures for GroupM, group
- Gross profit DKK 553.885 million. DKK +16.9 per cent
- Gross profit per employee 1.325 million DKK +10.7 per cent
- Salary share 45.5 (49.8)
- Profit before tax +55,623 million. DKK +77.5 per cent
Key figures for Mediacom
- Gross profit DKK 136.366 million. DKK +28.5 per cent
- Gross profit per employee 1,794, million DKK +23.4 per cent
- Salary share 34.4 (40.5)
- Profit before tax +20,712 million. DKK +308.5 per cent
Key figures for Wavemaker
- Gross profit DKK 110.022 million. DKK +23.7 per cent
- Gross profit per employee 1.467 million DKK +13.8 per cent
- Salary share 37.8 (42.2)
- Profit before tax +17.063 million. DKK, +234.3 per cent.
Key figures for Mindshare
- Gross profit DKK 78.657 million. DKK +10.6 per cent
- Gross profit per employee 2.126 million DKK -4.3 per cent
- Salary share 36.5 (32.7)
- Profit before tax +16.334 million. DKK +26.2 per cent