Grey Global Group reported a 31.2% year-on-year net income plummet during Q2, down from $2.43 million (€2.46m; £1.58m) to $1.67m. The shortfall is partly attributed to fragility in the group’s European operations, where second quarter revenue declined 15%. Lower returns from the company's investments were another factor.

International revenues – which account for over half (53.4%) of all the group’s income – were 13.7% down during the period, although domestic revenue registered a marginal 0.3% increase. Aggregated revenues were down 7.7% to $290.1 million, from $314.3 million a year ago.

• Separately, an unconfirmed report has it that Grey Worldwide has received six months notice of termination by Masterfoods’ European unit Pedigree Petfoods; while the group’s other roster networks, BBDO and TBWA, are said to be on standby to ‘go, fetch’ the estimated £50 million ($76.82m; €78.03m) pan-European Pedigree Chum account.

Although Grey is said to be “re-evaluating” its creative themes for the brand, word is that this is a purely cosmetic exercise – albeit one the agency cannot afford to spurn. Insiders say the shop is paying the price for its failure to conjure an acceptable alternative to the brand’s tired “top breeders recommend” campaign, already long in the tooth when Grey won the business seven years ago.

The account review comes hard on the heels of the recent departure of Anne Francke, Masterfoods’ most senior European petcare marketer. It also follows the group’s appointment of TBWA as its third global roster network.

But Masterfoods, true to its usual taciturn form, denied plans to move the business; also that Grey had been given six months notice. The latter declined to comment.

Data sourced from: and BrandRepublic (UK); additional content by WARC staff