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Profit Grows, Revenue Falls at Media Square
In the UK, marcoms group Media Square, which owns market research agency Illuminas, has seen its headline operating profit grow 44% to £2.3m for the 12 month period ended 28 February 2009.
While turnover declined 6% to £121.3m, and revenue dropped 3% to £64.0m, EBITDA increased 14% to £3.7m during the period. Reported operating profit was £3.9m against a reported operating loss last year of £13.1m.
Executive Chairman Roger Parry said that the group's strategy is now much simpler with lower overheads, which had helped to reduce corporate costs. He predicted that the benefits of these initiatives will be seen in the second half of the current year and in years to come.
In February, Media Square announced plans to reduce global headcount by around 9%, as part of this cost saving programme in response to a 'significant reduction' in client spend. Meanwhile, at Illuminas, Chairman Peter Reid told DRNO that the firm had experienced an exceptionally good year.
'The recession has had a significant impact on spending by our clients which was particularly marked in the final three months of the year we are reporting on,' said Parry. 'These negative economic conditions have continued so we expect that the current financial year, to February 2010, will be a challenging one despite the cost savings already implemented and as such we will maintain our proactive stance to cost control.'
Web sites: www.mediasquare.co.uk and www.illuminas-global.com .
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