LONDON: Grayling's revenue dropped 1% on a like-for-like basis in the first half of the year to approximately $67.3 million. The agency earned an operating profit of $13.6 million in the first half of 2012.
Grayling, which accounted for 49% of parent company Huntsworth's group revenue, maintained operating margins of 20.2% in the first half and saw a 30% improvement in profitability, according to an earnings statement.
Grayling CEO Michael Murphy said last month that he will step down from his role as soon as a successor can be found. The agency earned between $100 million and $150 million globally and $10 million to $65 million in the US in 2011, according to PRWeek's 2012 Agency Business Report.
Its London-based holding company Huntsworth reported a revenue increase of 0.5% in the first six months of this year to $138.4 million, compared with the first half of 2011. Its operating profit was up 18.6% in the six-month period to $21.5 million, compared with the first half of last year. The holding company's operating margin before central costs was 20.5%.
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.
Grayling's sister PR firm Citigate reported a 4.6% revenue decrease on a like-for-like basis to $18.8 million in the first half, while healthcare marketing firm Huntsworth Health's revenue grew 2.7% to $41.6 million, compared with the previous year. UK-focused specialist agency Red's revenue grew 13.1% in the first half to $10.8 million.
The holding company's overall first-half 2012 revenue grew at a slower pace than the previous year, when it was up 4.8% compared with the first half of 2010. Grayling's first-half revenue grew 2.6% in 2011 compared with the same period of 2010.
Peter Chadlington, CEO of Huntsworth, said in a statement that “large multi-office account wins…have taken time to come on stream but are now established and providing a firm revenue base across most markets despite the challenging macroeconomic environment.”
“We remain naturally cautious given the macro environment but progress in our multi-office and digital revenues are encouraging with a robust pipeline of new business for the second half and beyond,” he added in an earnings statement.
All figures were converted from British pounds to American dollars using the XE currency convertor.