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M&C Saatchi reports record full-year revenues and earnings
Advertising agency M&C Saatchi reported a record year for both revenue and earnings as the company released its 2017 financial results on Thursday.
The AIM-traded company's revenues increased by 12% compared to 2016, rising to £251.1m while the company's profit before tax saw a 16% increase as it rose to £27.7m as operating profits rose significantly in the UK, Europe and the Middle East and Africa.
Overall operating profits rose by 16% to £26.7m over the year as operations in Italy and Germany "continue to excel" due to a contract win with gaming company Sisal and the opening of mobile operations in Berlin.
Further highlights included the acquisition of a 60% stake in South African sport based entertainment company Levergy.
In the Americas major restructuring stunted operating profits as they fell by 53% with the company attempting to react to a second half slowdown in New York advertising revenues.
David Kershaw, chief executive of M&C Saatchi, said: "2017 was another record year for M&C Saatchi in terms of both revenue and earnings. Our established strategy of winning new business and starting new businesses continues to deliver. This year has begun well, and we are confident that we will continue to make good progress in 2018 and beyond."
Since the start of 2018 the company has opened a new office in Jakarta and picked up contracts with Aston Martin, Lexus and Automark.
Paul Richards, an analyst at Numis, said the results registered by M&C Saatchi were "slightly ahead of our estimates.
As of 1100 GMT, M&C Saatchi's shares were up 3.98% at 418.00p.