Agency networks report tough Q1

http://www.marketingmag.ca/english/news/agency/article.jsp?content=20090430_170510_7356

Revenues and profits were down between January and March for the international companies that control many of Canada’s largest advertising and media agencies.
Four major holding companies released their first quarter financial reports this week. The sub-prime crisis and the resulting global recession, as well as currency fluctuations, were cited as key factors negatively effecting the bottom lines.
• Interpublic (New York)
Canadian companies: DraftFCB, MacLaren McCann, M2 Universal, Weber Shandwick
Global revenues were US$1.3 billion, down 11% from $1.5 billion in 2008. The company reported a net loss of US$73.9 million versus a loss of US$ 69.7 million in the first quarter of last year. This year’s loss includes US$41.6 million in severance charges.
• Omnicom (New York)
Canadian agencies: BBDO, TBWA, DDB, PHD, Fleishman-Hillard, High Road Communications
Revenues were US$2.8 billion between January and March, down 14% from US$3.2 billion in 2008. Profits were down 21.2%, reaching only US$164.5 million versus US$208.7 million last year.
• Publicis Groupe (Paris)
Canadian agencies: Saatchi & Saatchi, Publicis, Leo Burnett, Zenith Optimedia, Starcom Mediavest
Global revenues were approximately US$1.4 billion (originally reported in Euros). While this reports as a 1.3% increase from last year’s numbers, currency fluctuations since that time resulted in a 4.4% drop in overall organic growth. However, North American revenues increased by 12.9%.
•WPP (London)
Canadian agencies: Grey, Ogilvy & Mather, JWT, Young & Rubicam, Group M companies, Hill & Knowlton, Wunderman
Revenues were down 5.8% “on a like-for-like” basis compared to last year. The drop was attributed to reduced client spending. Global revenue totaled approximately US$2.9 billion (originally reported in Euros).
Toronto-based MDC Partners, which tends to own a smaller percentage of its “partner” agencies such as Zig, Henderson Bas and Crispin Porter + Bogusky, saw a 6.7% decline in organic revenues. On consolidated revenues of US$126.7 million, net income attributable to MDC was only US$29,000—an improvement over the US$3.4 million loss from the same period in 2008.
Cossette, the Quebec City-based network that has agencies across Canada and in the U.S. and Europe, will report its revenues for the first three months of 2009 in May.