M&C Saatchi to expand business as profit soars 37%

Rosie Baker
By Rosie Baker | 17 March 2017

M&C Saatchi Asia and Australasia reported a 13% rise in like-for-like revenue and a 37% hike in operating profit for the 2016 calendar year, outperforming the global group.

M&C Saatchi's performance locally was driven by account wins such as Woolworths, BBQ Galore, eBay and Tabcorp.

The results, for the London Stock Exchange listed company, also noted the acquisition of Bohemia to “satisfy the needs of our clients, who are increasingly seeking a closer relationship between their media agency and content and creative providers”. It revealed that the recent deal saw M&C Saatchi acquire 51% of the media business. It's not clear exactly who retains the other 49% but it's likely to be the Bohemia founders. Listen to the AdNews Podcast with M&C CEO Jaimes Legget, Justin Graham and Bohemia's Brett Dawson here: AdNews Podcast: M&C Saatchi & Bohemia 

It also revealed plans to launch research agency The Source in Melbourne, replicating one of its UK businesses which set up five years ago to provide insights and research driven strategy. It has worked with UK supermarket Tesco, BT ebay and the BBC.

Globally, M&C Saatchi reported a 9% rise in like-for-like revenue, which splits out any arm of the business not open for a year or more and offers a comparable figure. In the UK it was 5% while profit slumped 12% following restructuring costs. The Middle East and Africa business returned revenue growth of 23%.

Total global revenue increased 26% to £ 225.3 million (AU$362.4m) for the full year to 31 December 2016. Billings sat at £458m (AU$738m) and joint ventures brought in £1.5m (AU$2.4m)

Pre-tax profit was up 18% to £ 23.7m (AU$38m) while operating profit increased 24% to £ 23m (AU$37m).

David Kershaw, M&C Saatchi group CEO, says: "2016 was an outstanding year for M&C Saatchi. We continue to roll out our proven strategy of winning new business and starting new businesses and see positive momentum across our global network and business channels. The year has started well and we are confident that we will continue to make good progress in 2017 and beyond."  

Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop me a line at rosiebaker@yaffa.com.au

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