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(Correcting net revenue for the first half of 2021.)
M&C Saatchi PLC on Wednesday posted a diminished profit for the first half of 2022 despite growing revenue as rising expenses and transaction costs hit.
Pretax profit in the six months to June 30 fell to £305,000 from £4.8 million.
M&C Saatchi shares were 3.9% lower at 155.96 pence each in London on Wednesday afternoon.
The London-based advertising agency said takeover transaction costs were at £9.3 million. In the last few months, M&C has found itself in a takeover battle between Next Fifteen Communications Group PLC, and its largest shareholder AdvancedAdvT Ltd.
Further, project costs widened by 74% to £92.3 million from £53.2 million. Staff costs increased by 10% to £94.4 million from £85.5 million.
On a headline basis, however, pretax profit rose 52% to £16.0 million to £10.5 million a year prior.
Revenue grew 30% to £221.7 million from £171.2 million a year prior. Net revenue rose 9.6% to £129.4 million from £118.1 million.
The firm intends to reinstate dividends for 2022, reiterating what it said in April. The last time it issued a dividend was for the first half of 2019.
‘Despite deteriorating macroeconomic conditions, the diversity of our capabilities, the strength of our counter-cyclical businesses, our geographic breadth, and our unique proposition of meaningful change provides resilience,’ M&C Saatchi stated.
M&C Saatchi was founded in 1995 by ad executives Charles Saatchi and brother Maurice Saatchi, who also were behind renowned ad agency Saatchi & Saatchi.
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