Chime Communications reported first half operating income jumped 25% to £167.7M while pre-tax profit fell 41% to £6.7M as gains in sports marketing from the London Olympics bolstered revenue after the $32M sale of PR unit Bell Pottinger.
Chime CEO Christopher Satterhwaite said the company is “evolving” from a diversified group centered on PR into an international communications and sports marketing group.
PR, once more than 40% of Chime’s revenue, is now about 15%.
“Despite difficult overall economic conditions we anticipate continued growth in our sectors and in our businesses,” he said.
PR, which previously represented more than 40% of Chime’s revenue, hit £24.7M for the first half, down from £51.3M a year earlier. Its discontinued Bell Pottinger unit saw revenue climb 54% to £29.3M.
By comparison, sports marketing was a £92M business for Chime in the first half, up from £38.6M in the first half of 2011.
Chime, which is searching for a new chairman, said the Bell Pottinger deal resulted in significant cost reductions, adding that cash from the move will be invested in growth areas. Chime said a £2.9M profit arose on the deal.
Chime’s business is now centered on four areas: sports marketing (CSM Sports & Entertainment), advertising (VCCP), PR and healthcare comms. (Good Relations, Open Health, Harvard, TTA PR, and insight and engagement (CIE).