WPP Revenue Grows More than 3% in Q1, PR Division Up 2%

Esan Bolaji
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WPP Revenue Grows More than 3% in Q1, PR Division Up 2%

WPP, the world’s biggest advertising group by revenues announced a strong start to the year. The group shows a return to like-for-like growth in all business segments and most major markets.

Key financial metrics

  • Q1 revenue +1.8%; LFL revenue +6.3%
  • Q1 LFL revenue less pass-through costs +3.1%
  • Top five markets Q1 LFL revenue less pass-through costs: US +0.7%; UK +3.9%; Germany +2.5%; Greater China +18.4%; India -0.5%
  • LFL revenue less pass-through costs by business sector: Global Integrated Agencies +2.8% (GroupM +5.8%), Public Relations +2.0%, Specialist Agencies +7.5%
  • $1.3 billion net new business won
  • Continued progress against the strategic plan: technology/commerce acquisitions, the buy-in of WPP AUNZ minority, the launch of Choreograph, share buyback ongoing
  • 2021 guidance reiterated

Mark Read, Chief Executive Officer of WPP, said:

“WPP has had a strong start to the year with a return to growth in all business lines and most major markets. Our strengths in eCommerce, digital media and technology, combined with our ongoing investment in creative talent, are resonating with clients as their markets recover and they seek to transform their offer for future growth. This week’s launch of our new global data company, Choreograph, adds a further dimension to the WPP proposition as clients look for trusted partners to help them navigate a fast-changing data landscape.

£ million
 +/(-)% reported +/(-)% LFL
First Quarter
Revenue 2,897
 1.8
 6.3
Revenue less pass-through costs 2,334 (1.4) 3.1

 

WPP
Mark Read

“We have already secured a number of important assignments in 2021, including Absolut (global creative), JP Morgan Chase (global media), Salesforce (technology operations) and Sam’s Club (US creative). We were also delighted to renew our valued partnership with the US Navy.

“Last week we made an industry-leading commitment to target net-zero carbon emissions across our entire supply chain by 2030, putting our $60 billion of media billings behind this initiative. We will work with our clients, media owners and the industry on this collaborative effort.

“The roll-out of vaccines is improving visibility in many markets, although there is inevitable uncertainty over the pace of recovery. We are making good progress on our transformation programme, which will deliver significant efficiencies to reinvest in growth, and are confident of delivering our growth and profitability guidance for 2021.”

Consumer E-Commerce Deliveries Rose 25% In 2020 As COVID-19 Reshaped Last-Mile Logistics

Brand Spur
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Consumer E-Commerce Deliveries Rose 25% In 2020 As COVID-19 Reshaped Last-Mile Logistics

COVID-19 has shifted the way people buy goods, accelerating the rise in online shopping and e-commerce deliveries.

According to a new report from the World Economic Forum, this has led to a 25% rise in consumer e-commerce deliveries in 2020.

The new report, Pandemic, Parcels and Public Vaccination: Envisioning the Next Normal for the Last-Mile Ecosystem, explores changes seen over the last year which will greatly influence last mile deliveries in the future. For example, it’s expected that 10%-20% of the recent increase in e-commerce deliveries will continue after the pandemic and the lifting of COVID-19 restrictions.

“Covid-19 shutdowns have completely reshaped how we live and of course this includes how and what we’re buying,” said Christoph Wolff, Head of Mobility, World Economic Forum. “Leaders must consider and respond to the effects COVID-19 has had on e-commerce deliveries and what impact these changes will have on their cities and communities.”

Beyond risng demand, the past year has also seen a large shift to greener delivery options, with wider spread EV across the industry and more stringent carbon emission rules from cities expected to shape delivery networks in the near future.

Overall, the report finds six main structural changes to the delivery and logistics sector that are expected to last:

 Six Structural Changes

  1. The pandemic has caused an increase in last-mile deliveries that are likely to persist.

    In 2020, business-to-consumer parcel deliveries have risen by about 25%. The report

    suggests that part of this increased demand will be durable, with at least 10%-20% of the growth remaining post-pandemic.

  1. Consumers increasingly buy new types of products online and consider environmental and health impact when buying.

    As consumers continue to buy a wider array of goods online, they are also becoming more ecologically aware. For example, 56% of millennials cite environmental protection as the reason for choosing alternatives to home delivery.

  1. Decarbonization of last-mile deliveries has accelerated.

    Companies and cities have ramped up commitments to make emission-free deliveries, while many pandemic-related economic stimulus packages, especially in the European Union and China, contain provisions to support green mobility and goods transport.

  1. Faced with budget challenges and increased transport needs, cities steer last-mile transitions.

    Many cities, like Seattle and Boston, have started to repurpose kerb space to designated delivery pick-up. Others, including Santa Monica and Amsterdam, are taking bold action on cleaner delivery with “zero-emission delivery zones” and electric vehicle charging infrastructure.

  2. Proven technologies are fuelling the last-mile ecosystem revolution.

    While disruptive new technologies, such as drones and delivery robots, will continue to emerge, the last-mile revolution is happening now as proven technologies scale up. The likes of parcel lockers and data sharing for load pooling are being adopted around the world as the costs of implementation decrease.

  3. New business models emerge to meet increased demand for sustainable delivery vehicles. 

    Certain logistics companies are now offering services to online retailers, which will help them identify the delivery routes most suited to make the immediate transition to electric delivery vehicles.

Last-Mile For Vaccines

While ensuring equitable access to COVID-19 vaccines remains the most pressing issue in global vaccine distribution, effective last-mile delivery is another critical issue for countries. The key challenges are cold storage, second vaccine dose needs, and a disconnect between the vaccine and patient journey.

NAtional Vaccination And Patient Strategy Photo Source: World Economic Forum

Potential solutions countries can implement for efficient vaccine delivery include real-time logistics planning, data integration, centralized management of delivery strategies at the national level and many more.

There are also early examples of countries that have handled this challenge particularly well. While there are many factors in vaccine distribution success, broadly speaking, countries with tight integration of healthcare and logistics stakeholders seem to show the highest national vaccination rates two months into 2021.

These include Israel, the UK and Chile outperforming other countries with more decentralized healthcare systems, like the US and Germany, which had slower initial vaccine rollouts.

Clearly, much still needs to be done to ensure developed countries overcome operational issues with vaccine delivery. However, mobility solutions should not overshadow an even larger ethical challenge in the differences of vaccine access between the global north and global south, which is a priority for greater equity.

Future Of The Last Mile

The impact of COVID-19 on the last-mile delivery has accelerated existing trends across the sector, leading to six structural changes expected to shape the future of last-mile deliveries.

These will be part of a broader urban mobility transition, driven by public policy and company actions. As cities and logistics leaders continue the sustainable urban delivery transition, close public-private coordination will be critical. Zero Emissions Urban Fleets (ZEUF) network, for example, provides a relevant dedicated stakeholder platform for this work.

FGN Borrowing from the CBN – Curse or Blessing?

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FGN Borrowing from the CBN – Curse or Blessing?

FGN Borrowing from the CBN – Curse or Blessing?

The standard definition of a central bank is that it is the bankers’ bank and the bank to the government. Therefore, the central bank is often obliged to provide financial support to the government to meet its financing needs.

Central bank lending to their host governments is usually funded by selling government paper directly or issued on behalf of the government. In some cases, a government’s expenditure is funded by ways and means advances, which grants the government an overdraft by means of direct monetary financing.

FGN Borrowing

Since the oil price shock of 2014-2016, the Nigerian government has often relied on borrowings from the Central Bank to plug its revenue shortfalls. The practice has, however, become increasingly worrisome due to the inflationary risks associated with and the delayed repayment of the loans.

In January 2021, the international rating agency, Fitch Ratings, warned that continual dependence on central bank lending could undermine the stability of the Nigerian economy. Notwithstanding, the CBN has insisted on sustained credit financing to the government.

While the minister of finance recently affirmed the need to reduce reliance on central bank lending, the CBN’s commitment to upholding the practice poses a fundamental threat to investor confidence and the stability of the economy. The Nigerian government’s debt at the CBN was estimated at N13.2 trillion (8.6% of GDP) as of September 2020 and headline inflation is already at a more than four-year high of 18.17%.

Impact of Central Bank lending on the Economy

Central bank lending to the government is usually necessitated by fiscal gaps and the need to support economic recovery efforts. This is different from intervention lending for developmental initiatives in the country such as the anchor borrowers programme.

CBN’s lending to the government is targeted at reducing the fiscal pressures of the government at times of significant revenue shortfalls. Nigeria’s fiscal revenue has been susceptible to swings due to peaks and troughs in the global price of oil.

For example, in 2016, the global economy recorded a huge slump in oil prices, which plunged below $30pb in January 2016. This weighed significantly on the country’s fiscal and external balances resulting in a recession in 2016.

The country also continues to face a rising fiscal deficit resulting in a surge in government borrowing, both domestic and external. Nigeria’s debt to GDP ratio rose to 34.98% in 2020 from 29.10% in 2019.6 Fiscal deficit is also estimated at 3.6% of GDP (N5.6trn) in the 2021 budget, higher than the 3% benchmark in the Fiscal Responsibility Act of 2007.

According to the CBN, the direct impact of credit financing from the Central Bank is the surge in money supply, which typically results in price and exchange rate instability.8 Hence, the CBN’s commitment to continue to finance the government undermines its core monetary responsibilities.

Although the government has announced plans to securitize its debt at the CBN, this could result in an increase in its debt service costs, which will weigh on its credit rating.

Fitch retained its credit rating for Nigeria at ‘B’ with a stable outlook on March 19 but highlighted sustained central bank lending as one of the potential threats to the country’s rating.9 In addition, continual reliance on CBN financing could encourage fiscal complacency in the implementation of revenue generation reforms by the government. 

Lessons from Zimbabwe

The Zimbabwean government resorted to central bank financing after sanctions from the international community in 2001. The sanctions were prompted by the contentious land reform program initiated by the then president, late Robert Mugabe, in 2000.

The program encouraged black farmers to reclaim their farmlands from white commercial farmers. The US, in reaction, imposed sanctions on the economy restricting support for multilateral financing to Zimbabwe.

The country, therefore, relied on monetary financing to meet its fiscal obligations, which led to a spike in its inflation rate to as high as 79.6 billion percent in November 2008, the second-highest cause of hyperinflation on record.10 Although the inflation rate has since reduced, Zimbabwe is still struggling with three-digit inflation, which stood at 194.07% in April 2021. 

Conclusion

The Nigerian government needs to intensify its revenue generation efforts and step up measures towards economic diversification to reduce its vulnerability to oil price shocks. The current focus on the development of the agriculture sector is commendable.

However, there is the need for an effective monitoring process to track the progress of several agriculture interventions schemes and areas requiring improvement. The government should also adopt business-friendly economic policies to encourage growth in other sectors of the economy such as manufacturing, mining, trading and ICT.

This will help broaden the government’s revenue base and reduce reliance on oil. Moreover, the government needs to be committed to fiscal discipline to prevent an increase in the country’s debt burden and the risk of a credit rating downgrade.

Positive Sentiment Returns To Market As the NSE ASI Gains 1.24%

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Positive Sentiment Returns To Market As the NSE ASI Gains 1.24%

In contrast to yesterday’s -1.33% loss, the Nigerian Stock Exchange (NSE) All-Share Index (ASI) gained 1.24%, growing from 38,261.61 to 38,781.48.

The market capitalization also grew from ₦20.30 to ₦20.50 trillion. Year-to-date, the market has lost 2.51%.

Two sectors gained and two sectors lost in today’s market. The Industrial sector saw the largest gain of 3.58%, followed by the Insurance sector which gained 1.61%. The Banking and Consumer Goods sectors fell by -1.35% and -0.22%. However, the Oil & Gas sector’s index remained unchanged.

Investor sentiment was stronger in today’s trading session as the market breadth of 1.40x indicates, showing an increase from the previous day’s market breadth of 0.83x.

This was illustrated by the advance of 21 stocks, led by FIDSON (10.00%), and JBERGER (10.00%), and the decline of 16 stocks, led by CWG (-9.84%) and MBENEFIT (-7.50%); in contrast to the previous trading session where 19 stocks advanced in price while 23 stocks declined.

However, the volume and value of shares traded in the market fell from 259.51 million and ₦1.91 billion to 223.04 million and ₦1.73 billion respectively.

Fixed Income

Movement in the FGN Bond space was mixed as the FGN-APR-2023 bond yield remained stable at 10.53%, the FGN-JAN-2026 bond yield rose from 11.89% to 12.36% and the FGN-JUL-2030 bond yield fell from 12.64% to 12.46%.

Treasury bill yields for the 91-day, 180-day, and 365-day securities remained stable at 3.05%, 4.21%, and 8.05%.

Market Snapshot

  • Positive Sentiment Returns to Market As the NSE ASI Gains 1.24%
  • Mixed Performance Across the Yield Curve
  • Stocks Erase Gains After Touching Record on GDP
  • Oil Climbs With U.S. Demand Bump Driving Global Rebound Optimism
  • Parallel Market Exchange Rate Reports at ₦485.00/1$

TECNO Signs Renowned Actor Chris Evans As Its Brand Ambassador

Esan Bolaji
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TECNO Signs Renowned Actor Chris Evans As Its Brand Ambassador

The signing of Chris Evans has intensified TECNO’s globalization strategy, allowing them to break into emerging markets around the world to become a leader in those areas

April 30, 2021 – TECNO, a global leading premium smartphone brand, has announced its new brand ambassador, Chris Evans. This signing has intensified TECNO’s determination of globalization allowing them to break into emerging markets around the world to become a leader in those areas.

TECNO
Internationally Renowned Actor Chris Evans | Brand Spur Nigeria

As the brand continues to grow on the world stage, TECNO now finds itself competing with major mainstream brands, who will undoubtedly take note of this new partnership.

Best known for his role as Captain America in the Marvel Universe series of films, the charismatic Chris Evans embodies TECNO’s brand motto ‘young at heart’ and the pursuit of excellence. The partnership with Evans enhances TECNO’s continuous global footprint and helps to highlight the brand’supgraded product design, which is increasingly fashionable, energetic, and constantly pioneering.

In the recent 2 years, TECNO obtained certain positive results in globalization and internationalization by strengthening its technology innovation, stylish design detailed with elegant taste, professional photography experience as well as its worldwide partner network.

TECNO

The industry has witnessed TECNO’s solid achievement in mobile photography by its bagging of the championship after competing with the world’s best minds at its first match in the Look In Person (LIP) competition at Computer Vision and Pattern Recognition (CVPR) 2020 in Track 5: Dark Complexion Portrait Segmentation Challenge.

And by industry-leading research institution Counterpoint’s most recent report, TECNO is recognized as one of the few brands that have made breakthroughs in AI-enhanced mobile photography and videography.

TECNO’s excellent photographic performance also let the brand earn distinctions in Guinness World Records 2020 with the largest flipbook shot by its photography pioneer CAMON product line and in IFA(Internationale Funkausstellung Berlin) with “Camera Technology Innovation Smartphone Gold Award 2020”.

TECNO’s increasing market share also speaks loudly for its globalization footprint. In 2020, TECNO led the industry through a tough year, where brands took a hit in terms of smartphone sales.

According to global market intelligence company IDC, TECNO sales volume exceeded 25 million units, up 45%, and revenue exceeded 15 billion, up 38% YoY in 2020. TECNO’s India smartphone sales, increased more than 200% YoY, topped 5 million units in 2020, breaking its own sales growth record. There seems to be nothing stopping the upcoming brand from breaking new grounds and achieving new heights.

From the perspective of trend analysis, the future holds great promise for TECNO, as further exhilarating steps are anticipated. TECNO has been committed to strengthen the R & D investment and layout in intelligent applications, intelligent connected devices, and build an intelligent ecosystem integrating hardware and software.

In 2020, the RD investment increased by about 30% year on year. The sky is the limit if TECNO continues its trajectory of gaining greater market share.

Now, together with Evans, TECNO with its four reputable product lines will stand out in the global market as a new shining superstar. TECNO’s wildly popular CAMON series is set to release the CAMON 17 within the next few days, setting the market and consumer ablaze with chatter on upcoming features and innovations.

TECNO CAMON series has been well-known for the excellent photography experience and have been recognized by numbers of international media industry professionals.

Super-Premium Nescafé Delivers New Tastes Through Roasting Innovation

Esan Bolaji
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Super-Premium Nescafé Delivers New Tastes Through Roasting Innovation

With Nescafé Gold Blend Roastery Collection, Nestlé is launching barista-style soluble coffees that harness the company’s unique expertise in roasting technology to deliver new taste profiles.

Collaborating closely with the company’s coffee business, Zone EMENA and the UK market – where the new range is now on sale – experts at Nestlé’s coffee research and development centre in Orbe, Switzerland developed innovative approaches to roasting for this range, plus recipes and packaging – all within an eight-month timescale from idea to launch.

nescafe

The experts worked tirelessly to perfect different roasting profiles for the Arabica and Robusta beans used in the two new blends, experimenting with roasting levels and roasting times. ‘The Light Roast’ has a smoother, more delicate taste, with notes of caramelized honey and toasted biscuit, while ‘The Dark Roast’ is bold and intense, with notes of dark chocolate and roasted nut.

The coffee beans are grown and produced in a sustainable way that benefits coffee farmers and the environment and is packaged in aluminium tins that are 100% recyclable and plastic-free – to support Nestlé’s 2025 packaging commitment.

Damien Tissot, Head of Nestlé Product Technology Center Beverage in Orbe, said: “Nescafé Gold Blend Roastery Collection delivers amazing new taste profiles, due to an innovative roasting process that allows us to emphasize the natural taste of the different beans and use them in our blends, fitting the current trend towards speciality coffee. The plastic-free packaging is another proof of our commitment to delivering sustainable innovation for all Nestlé coffee brands.”

Don Howat, Global Category Leader for Nescafé, said: “This is a great concept based on really strong consumer insight. The range was developed in record time and we’re excited to be launching in the UK, then quickly rolling out to other markets. Fantastic teamwork!”

Two additional soluble coffee innovations have just launched in the UK. Nescafé Azera Craft Coffee, the UK’s first craft coffee in instant format, and Nescafé Azera My Way Latte, the market’s first instant latte that can be prepared using a choice of milk or plant-based milk alternatives.

Discover how Nestlé is ‘Raising the Bar in Coffee‘ across its entire portfolio, in this recent feature written by our Chief Technology Officer, Stefan Palzer. And find out how we’re pioneering new lower-carbon coffee plant varieties for distribution to farmers.

Audio Adaptation Of Broadway Musical ‘FELA!’ To Debut On Clubhouse

Esan Bolaji
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Audio Adaptation Of Broadway Musical ‘FELA!’ To Debut On Clubhouse

Fela Ten Twenty, an audio adaptation of the popular Broadway show ‘FELA!‘ depicting Fela Kuti’s life and music, will premiere on Clubhouse on Saturday, May 15, and Sunday, May 16.

Proceeds from the show will support GEANCO, whose David Oyelowo Leadership Scholarship provides full tuition, healthcare, and social and psychological support to young female survivors of terrorism and gender inequality. 

Brand Spur Nigeria understands that the Fela Ten Twenty will feature an exciting new interpretation of Bill T. Jones’ and Jim Lewis’ Original FELA! The script, framing the ongoing #EndSars movement in the context of Fela Kuti’s legacy. Music for the production will be recorded in Lagos, Nigeria by The Cavemen, the band rekindling Nigerian highlife with their new album Roots. 

“Fela’s music, the foundation for Afrobeat, demanded global engagement with African political thought. In the aftermath of the October 2020 #EndSars protests against police brutality, his message still achingly resounds. This production is a love letter to those fighting for a better Nigeria,” says FELA Ten Twenty writer, director, and producer, Funa Maduka.

Audio Adaptation Of Broadway Musical ‘FELA!’ -Brand Spur Nigeria
Audio Adaptation Of Broadway Musical ‘FELA!’ -Brand Spur Nigeria

“Fela belongs to Nigeria, Africa, and the world. It is a thrill to have the show reimagined by a team of young, creative Nigerians. I’m proud to support these artists who have come together to honor Fela Kuti’s legacy with such immense commitment and dedication,” says Stephen Hendel, whose hit Broadway show was nominated for 11 Tony Awards.

The production will feature a talented cast of actors from Nigeria, the UK, and the US, including Sir Marcell as Fela Kuti, Jumoké Fashola as Funmilayo Kuti, NC Grey as Najite- a Kalakuta Queen, Nneamaka Nwadei as Omolara- a Kalakuta Queen, Malikat Rufai as Sandra Izsadore, Uche Ogodi as J.K. Braimah, Comfort Dangana as DJ Switch, Adeola Adebari as Tunde, Muhammed Agboluaje as the Driver, LaToya Ransom as the Radio Journalist and Aliu Ajala as the Babalawo. 

The production is produced by Stephen Hendel, Funa Maduka, and Ọlabimpe Ọlaniyan, daughter of the late renowned Fela scholar, Tejumola Olaniyan. Kingsley Okorie and Benjamin James of The Cavemen are Music Directors; Marcellus Wesley is both Technical Director and Sound Designer; Ellen Marte is both VFX Director and Graphic Designer and Amanda Ezechi is Marketing Director.

Consulting on the production are Sahr Ngaujah, Actor, Director, Producer and Original Fela of the Broadway Show, FELA!; Robert Kaplowitz, Tony Award-Winning Sound Designer of the Broadway Show, FELA!; and Abena Koomson-Davis, Educator and Original Cast Member of the Broadway Show, FELA!.

The spark for this ambitious production came when a group of four friends, Eniola Mafe, Omolola Adele-Oso, Chinedu Enekwe and Audu Maikori, were inspired to host a table read of FELA! on Clubhouse to commemorate the tenth anniversary of the close of the show’s Broadway run. They approached Maduka to direct, who pitched reimagining it, and the audio play adaptation was born.

OkayAfrica, the digital media platform dedicated to African culture, music, and politics, is the Official Media Sponsor of Fela Ten Twenty. The site has become a popular destina

Country Focus: Four Questions About Debt And Financing Risks From COVID-19

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Country Focus: Four Questions About Debt And Financing Risks From COVID-19

Across the Middle East, North Africa, Afghanistan, and Pakistan (MENAP), countries responded to the COVID-19 pandemic with unprecedented scale and urgency.

While this strong response helped save lives and cushion the economic blow, it also exacerbated existing debt vulnerabilities and led to a surge in financing needs.

The IMF’s Regional Economic Outlook Update for the Middle East and Central Asia explores these issues and policies to address them.

Here are four key questions:

1. How significant were debt vulnerabilities in MENAP prior to the pandemic and what were the primary concerns?  Many countries were already facing high debt. By the end of 2019, one-half of MENAP countries had government debt ratios above 70 percent of GDP and one in four countries faced public gross financing needs above 15 percent of GDP annually.

With limited access to external financing, governments and large state-owned enterprises turned to domestic banks. This expanded banks’ exposure to the public sector in several of MENAP’s emerging markets—ranging from over 20 percent of total banks’ assets in Iraq, Jordan, and Qatar, to above 45 percent in Algeria, Egypt, and Pakistan, and up to 60 percent in Lebanon. By contrast, banks in emerging markets elsewhere had a public sector exposure of 12 percent.

    • Banks’ excess liquidity in some countries and an underdeveloped institutional investor base in others, together with the lack of a more vibrant private sector, have created incentives for banks to hold government bonds until maturity, hindering domestic debt market liquidity and development.

2.  How did the pandemic affect the region’s deficits, debt, and financing strategies? The collapse in economic activity led to losses in fiscal revenues, as countries increased government spending to mitigate the pandemic’s impact. As a result, fiscal balances worsened across nearly all countries. Compared to pre-pandemic expectations, primary deficits in MENAP expanded by an average of 7.5 percent of GDP in 2020. These higher deficits, combined with the economic slowdown, resulted in a 7 percentage-point average increase in debt-to-GDP ratios.

Although one-third of MENAP countries tapped international financial markets—representing 25.5 percent of worldwide emerging market issuances—domestic financing played a critical role, particularly during the first phase of the crisis when international markets were disrupted. For instance, governments in Egypt, Jordan, Pakistan, and Tunisia covered more than 50 percent of their public gross financing needs with domestic bank financing in 2020.

3. What challenges will MENAP’s emerging markets face due to higher financing needs ahead? Public gross financing needs are projected to rise to a total of $1,044 billion in 2021–22, from $780 billion in 2018–19. Financing needs during 2021–22 are expected to remain above 15 percent of GDP, on average, in most MENAP’s emerging markets, albeit with limited needs from external debt amortization (about 4 percent of GDP).

Since prospects for heavily tapping international markets are limited, banks’ exposure to the state is likely set to accelerate in the years ahead. This could crowd out private sector credit at a time when private financing is critically needed to spur the recovery. Moreover, the Regional Economic Outlook estimates that budgetary needs could be further exacerbated by 3 percent of GDP under a potential shock scenario involving rapid tightening of global financial conditions along with delayed fiscal adjustment due to a protracted recovery. If domestic banks fund these unexpected needs, in addition to the expected financing needed during 2021–22, Egypt, Oman, Pakistan, and Tunisia would absorb an additional 10 to 23 percent of banks’ assets as government debt by the end of 2022. As a result, Egypt and Pakistan’s banks could reach levels of public sector exposure similar to those currently seen in Lebanon.

 4. What policies can help countries reduce debt vulnerabilities? Countries will need credible and clearly communicated medium-term fiscal and debt management strategies. These will require careful coordination among the monetary, fiscal, and financial sector regulatory authorities to form a common view on the overall absorption capacity of domestic financial markets.

Countries with limited or no fiscal space will need to initiate growth-friendly consolidation plans as the crisis subsides. In countries with market access, policymakers should work to proactively mitigate rollover and refinancing risks. Engaging in liability management operations (such as extending maturities) can improve terms on existing debt and the medium-term debt profile. In countries where market access is more limited, governments could consider reprofiling their commercial and bilateral debt.

Developing domestic capital markets, gradually broadening the investor base, and expanding banks’ opportunities to diversify their assets, including from further progress on financial inclusion, would help reduce risks from banks’ overexposure to the state. Over the medium term, policymakers could introduce changes to banking regulations to reduce the existing bias of banks’ asset portfolios toward government bonds.

 

Julius Berger Reports 585.42% Rise in Profit To N2.8B in Q1

Esan Bolaji
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Julius Berger Reports 585.42% Rise in Profit To N2.8B in Q1

Julius Berger Nigeria Plc, a planning and construction group of companies released its First Quarter report for the period ended, 31 March 2021.

The construction giant released an impressive result with growth in its topline and bottom-line figures, compared to figures reported in Q1 2020.

Julius Berger reported a turnover of N71.2 billion, up by 27.34% from N55.9 billion reported in Q1 2020.

Profit after tax grew by 585.42% to N2.827 billion from N412.45 million achieved in the first quarter of 2020.

Earnings per share (EPS) of Julius Berger for the period under review increased to N1.78 from the EPS of 26 kobo, which translates to 585.42% growth year on year.

At the share price of N19, the P.E ratio of Julius Berger stands at 10.65x with an earnings yield of 9.39%.

Nielsen Launches Podcast Ad Effectiveness+

Esan Bolaji
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Nielsen Launches Podcast Ad Effectiveness+

Today, Nielsen, announced the launch of Podcast Ad Effectiveness+ (PAE+), a new solution that measures the effectiveness of podcast advertising including brand lift and memorability across podcasting audiences.

With this new offering, Nielsen is building on its current podcast ad effectiveness solution to include the ability to measure digitally inserted ads in a live podcasting setting. PAE+ enables advertisers to better maximize their strategy for future campaigns, and publishers to showcase the strength of their podcast environment.

Nielsen
Photo by CoWomen

Today podcast content and listenership are on the rise with 1.7 million titles available and 75% of listeners tuning in to more than one podcast a week, according to our recent Podcasting Today report.

As more brands and advertisers tap into the growing podcast space, it’s critical to understand not only the podcast audience but how podcast ads resonate with those audiences, especially in a live environment where listeners are highly engaged.

“The growth of podcasting has brought a massive opportunity for advertisers to reach highly engaged, niche audiences. While there have been strides in capturing metrics like downloads, it’s been a challenge to understand the impact of ads on the platform,” said Arica McKinnon, Vice President, Client Consulting at Nielsen.

“PAE+ equips brands and publishers with the insights they need to make smarter decisions about their podcast marketing strategy to maximize the value delivered and ultimately increase sales opportunities.”

Nielsen’s distinct and deliberately designed solution will measure the effectiveness of digitally inserted ads across online and mobile web environments. PAE+ will provide a detailed campaign analysis that evaluates lift across the brand funnel and memorability metrics.

Additionally, PAE+ has benchmarking capabilities, similar to Nielsen’s robust podcasting norms, which have grown to include more than 400 studies spanning 350+ brands across automotive, CPG, education, financial services, DTC retail and technology industries.

Among the benefits: 

  • Transparency and scale: Ad effectiveness can be measured across podcast platforms and multiple shows. Insights are available mid and post-campaign.
  • Customization: Flexible surveys allow us to measure ad effectiveness across more niche, target audiences and answers unique client questions
  • Granular insights: Understand your audience at a deeper level with reporting that can be cut by the show, frequency of exposure, gender, age.
  • Natural setting: Podcast clips are tested in a live setting to show real campaign exposure.

PAE+ is part of Nielsen’s robust suite of podcast solutions that enable marketers and publishers to better understand the behaviours of podcast listeners within the podcast marketing workflow, from discovery to optimization. Nielsen’s podcast solutions provide unparalleled insights into the impact that podcast advertising has on consumers.

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