MAM
Mobile advertising drives M&C Saatchi growth for 2011
MUMBAI: Even as industry pundits predict that digital and mobile advertising is the mantra for the future, mobile advertising and social media marketing services helped M&C Saatchi to more than double its pre-tax profits last year.
The mobile group has contributed 15-20 per cent of M&C Saatchi’s UK profits, doing work for brands including the O2 arena and Speedo.
Advertising spending on mobile devices leapt by 157 per cent last year to ?203.2m in the UK, according to figures published on Tuesday by the Internet Advertising Bureau and PwC.
Revenues rose 22 per cent to ?153.1m in the year ended 31 December with pre-tax profits jumping from ?7.8 million in 2010 to ?16 million.
The Financial Times quoted M&C Saatchi chief executive David Kershaw as having said: “2012 has started well. We see pretty good growth. We are looking at double-digit earnings growth next year and going into 2013.”
In 2010 M&C Saatchi acquired Inside Mobile, an agency dedicated to creating applications and other forms of smartphone marketing.
Much of M&C Saatchi’s mobile revenues are coming from existing clients. “There’s an inverse relationship between client knowledge and agency margin,” Kershaw told FT. “At the moment, client understanding of mobile is in the foothills, which means there’s a greater dependence on experts. There is not an oversupply of experts yet, which means you get a healthy margin. The next two or three years should be very healthy.”
The agency’s newer international offices in South Africa, the US and Latin America also contributed to the boost as they became profitable.
M&C Saatchi was hit by some big client losses particularly in Australasia but won in other fast-growing areas, such as mobile.
Brands
Wipro hires 7,500 freshers, withholds FY27 hiring outlook
Profit rises to Rs 3,522 crore, Rs 15,000 crore buyback announced.
MUMBAI- Hiring may be on, but visibility is off, Wipro is adding talent even as it pauses the crystal ball. The company hired 7,500 freshers in FY26 but stopped short of offering any hiring outlook for FY27, underscoring the uncertainty gripping the IT services sector as it pivots towards an AI-led operating model.
The disclosure came alongside its fourth-quarter earnings, where management flagged volatile demand conditions and refrained from committing to future workforce expansion. Chief human resources officer Saurabh Govil noted that over 3,000 of the total hires were onboarded in the March quarter alone, signalling continued intake despite a lack of clarity on deployment pipelines.
This divergence active hiring without forward guidance reflects a broader industry pattern where talent acquisition continues even as deal conversions remain uneven and client spending cycles stretch. Wipro expects its IT services revenue for the June quarter to range between a decline of 2 per cent and flat growth sequentially in constant currency terms, reinforcing near-term caution.
Chief executive officer Srini Pallia pointed to artificial intelligence as both a disruptor and an opportunity. He said evolving client priorities are pushing the company towards outcome-driven engagements, with Wipro increasingly focusing on a services-as-software model through its AI Native Business and Platforms unit. The shift marks a structural change from traditional headcount-led growth to AI-enabled delivery frameworks.
The company has already committed over $1 billion to its AI ecosystem, with investors closely watching how these investments translate into revenue. For now, the numbers present a mixed picture. Net profit rose sequentially to Rs 3,522 crore, while revenue grew 3 per cent to Rs 24,236 crore. However, core IT services performance remained under pressure, with full-year revenue declining 0.3 per cent in dollar terms and 1.6 per cent in constant currency.
Large deal bookings offered a counterpoint, rising 45.4 per cent year-on-year to $7.8 billion, highlighting a widening gap between deal wins and actual revenue realisation. On a quarterly basis, IT services revenue slipped 1.2 per cent sequentially, signalling continued softness in execution.
Margins, however, told a more optimistic story. Operating margins expanded to 17.3 per cent in the fourth quarter, up from 14.8 per cent in the previous quarter, reflecting improved cost discipline. That said, the company cautioned that upcoming wage hikes and the ramp-up of large deals could exert pressure going forward.
Attrition stood at 13.8 per cent in the March quarter, indicating stabilisation after periods of elevated churn. Alongside its earnings, Wipro also announced a Rs 15,000 crore share buyback, reinforcing its focus on shareholder returns, with a payout ratio of 88 per cent over the past three years.
Taken together, the numbers capture a company in transition investing in AI, maintaining hiring momentum, but navigating a demand environment where growth is uneven and visibility remains limited.
