Financial Roundup: Agencies, Media, Major Marketers

16 September 2004

Global (calendar H1)

  • M&C Saatchi
       The recently-floated London-based ad agency reported a first-half pre-tax profits rise of 9%, to £4 million ($7.1m; €5.8m), and an overall revenue rise of 10%, to £29.8m, on the back of strong performances in Asia and Australia.
       Its Asia-Pacific businesses boasted a 31% revenue rise to £10.9m and an increase in operating profit to £693,000, up fourfold from 2003.
       In the first results since its IPO in June of this year, the company revealed a static performance in the UK as account gains such as London Olympics 2012 and fast-food giant KFC were countered by the loss of Rover and discount retailer Matalan.
       The US offices posted mixed reports, with revenues climbing to £1.2m but profits slipping significantly from £270,000 to £38,000.
       Although the company expects IPO charges and international expansion costs to negatively impact on second-half results, it remains confident of meeting full-year expectations.

    USA (fiscal Q1)
  • Oracle
       Despite engaging in a frenetic fray to acquire rival firm PeopleSoft, it was smiles all round at the Californian software titan as it posted soaring first-quarter profits of $509m (€416m; £285m), up 16% from last year's $440m.
       Revenues for the quarter ending August 31 were up 7% to $2.22bn as the company reported strong sales of database software for corporate computing services.

    Global (fiscal Q4)
  • Campbell Soup
       The food giant blamed rising costs for marketing and job cuts for its weak fourth-quarter performance, as profits saw their greatest decline in over two years, falling by 20%.
       Despite a $6m gain from a Californian factory sale, the company's net income slumped from $74m to $59m, while sales fell by 1.5% year-on-year to $1.43bn. However, taking into account the fact that sales figures were reported from a fiscal quarter one week shorter than the previous year's, they actually rose 5%.
       Campbell's forecast for per-share earnings in fiscal 2005 remains the same as in June, a rise of 5%-7%.

    Data sourced from: multiple sources; additional content by WARC staff