M&C Saatchi posts profit increase amid PR expansion

M&C Saatchi has reported a 17 per cent rise in pre-tax profits to £8.5m for the half-year to 30 June compared with the same period last year.

David Kershaw: Anticipating even better returns in 2015
David Kershaw: Anticipating even better returns in 2015

The marketing services group’s revenues grew three per cent year on year to £82.6m.

David Kershaw, M&C Saatchi chief executive, said: "Our results for the first six months of 2014 showed continued revenue momentum and excellent earnings growth and give us confidence for a successful full-year outcome."

Kershaw pointed to its current international rollout of M&C Saatchi PR and the export in recent years of the group’s mobile and sport & entertainment ventures to its overseas offices.

He added: "This success is based upon a combination of new business wins in our core operations and a growing contribution from our developing new businesses.

"Most of these have yet to reach their full potential and we are anticipating even better returns in 2015."

Chris Hides, managing director at M&C Saatchi PR, told PRWeek that the division is performing in line with expectations and is making a "very good contribution to the overall group figures".

Hides said: "We’re pretty much on track, we’ve seen consistent year-on-year growth since we launched in 2010 and we’re actually slightly ahead of expectations year-on-year."

He added that M&C Saatchi PR’s four key practices – consumer, B2B/corporate, events/experiential and digital/design – are all delivering good revenue for the group.

The group's UK revenues were up 17 per cent, with CRM and mobile in particular performing strongly.

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