Huntsworth today reported a $70.3M first-half loss due to a $76.M write-off for its struggling Grayling and Citigate units. It registered a $12.4M year ago profit.
The British PR firm completed its strategic revenue during the first-half "to determine which businesses are delivering, or could deliver sustainable profit growth," according to chief Paul Taaffe.
He anticipates flagship Grayling, which suffered an 8.8 percent drop in revenues to $49.8M, to "return to stronger profitability as it exits 2015" due to staff cuts of more than 100 people and shutdown of five offices.
Citigate reported a 7.2 percent decline in revenues to $15.7M due to "intense price competition for transaction mandates, particularly in the UK where, despite high volumes of cross-border as well as domestic M&A, new business wins have been much lower yhan expected throughout the half," according to the firm.
Taaffe's recovery game plan includes expanding Grayling's presence in Africa and the Middle East, and establishing a Huntsworth Health beachhead in China with the opening of an outpost in Shanghai.
Consumer-oriented Red operation is focusing on a "deeper digital content capability."
Taaffe predicts Huntsworth will show an improvement in profitability for the second-half as it realizes gains from the resturucturing drive.
Stagwell registered an eight percent rise in Q1 revenues to $670M and a $1.3M net loss compared to a $1.4M profit last year.
WPP reported a 5.5 percent decline in Q1 PR revenues to $292M as its BCW and Hill & Knowlton units suffered the loss of Pfizer assignments, and cutbacks in client spending due to the economic uncertainty.
Interpublic CEO Philippe Krakowsky said the firm is off to a “solid start to the year” as its flat $2.2B net revenues are in line with 2024 financial targets.
Why financial planning always plays a crucial role in every PR firm’s success.
Omnicom CEO John Wren reports Q1 revenues jumped 5.4 percent to $3.6M, powered by a solid 7.0 percent rise in its advertising & media segment.
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