Huntsworth sees revenue slump in third quarter

LONDON: Huntsworth's group revenue fell 3.6% in the third quarter on a like-for-like basis, including declines at Grayling and Citigate.

LONDON: Huntsworth's group revenue fell 3.6% in the third quarter on a like-for-like basis, including declines at Grayling and Citigate.

Financial PR division Citigate reported a decline of 17.2% in the third quarter compared with the prior year, which Huntsworth attributed to slow growth in the UK financial markets.

“In Citigate, revenues in Europe and the Far East showed some growth, but the division was held back in London by the continuing lack of activity in the UK financial markets,” Huntsworth COO and finance director Sally Withey said in a statement.

Grayling saw a revenue decline of 7.6% in the third quarter, compared with the prior year.

“In Grayling, new multi-office business could not offset a further slowdown in Q3 across the Eurozone,” Withey said.

However, Huntsworth Health and Red saw growth in the period, with Huntsworth Health's revenue increasing by 6.8% and Red seeing an 11.4% jump compared with the previous year.

The London-based holding company attributed its overall slowdown to economic conditions in the UK and Europe, which account for 60% of group revenues, and to a downturn in financial and corporate activity in the UK financial markets.

The company added that it expects to report “a significant improvement in profitability” in 2012 despite revenue declines in the third quarter.

In August, Huntsworth reported flat earnings for the first six months of the year, with revenue increasing by 0.5% in the period. Huntsworth's US revenue was up 1.6% in the first half, while European revenue was up 4.8% in the period, compared with the same timeframe of last year.

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