USA/Canada (calendar Q3)
While the Canadian-headquartered advertising group's revenue soared 45% compared to the prior-year period and new business wins were up, losses persist.
The parent of hot agencies such as Crispin Porter & Bogusky, Zig and Kirshenbaum Bond & Partners, reported a loss of $1.6 million (€1.3m: £918k), its fifth consecutive quarterly loss, on revenue of $118.9m.
For the nine months ended September 30, revenue rose 41% to $316.8m from $225.2m, while net losses were $6.4m, versus income of $6.5 million for the same period last year. Profit margins were essentially unchanged at 13% for the third quarter and at 10.3% for the nine-month period. The reason: high corporate expenses. "Everything else is in line," says one analyst.
For the quarter corporate expenses were $7.3m compared, to $1.9m a year ago. For the nine months, they hit $16.2m, double the $8m for the nine-month period ended September 2004.
UK/USA (calendar Q2,Q3)
The UK directories firm was upbeat about its full-year performance after releasing interim figures showing strong growth in its US and online businesses.
Pre-tax profits were £155.9 million ($271.4m; €230.6m) for the six months to September 30, an increase of more than 23% on the same period last year. Revenues were £711.1m, almost 18% higher.
Revenue growth of 5% per cent in the UK was driven by stronger than expected growth in Yell.com sales, which increased 57%.
The company says it will slightly exceed its full-year forecasts of more than 3% growth in the UK, where online growth has been stronger than expected, and 12% growth in the US, which performed well both organically and with recent acquisitions factored in.
Data sourced from AdAge.com (US) and Financial Times Online; additional content by WARC staff
