BWM’s Telstra loss hurts improving Photon balance sheet

In its latest half-year financial results, Photon Group announced that is debt free with a cash balance of $32m – but the performance of its Australian agencies was “significantly lower” than last year, largely due to BWM’s loss of Telstra.

On the group’s balance sheet for December 31 2011, revenue from its Australian agencies – which include BMF, BWM, Naked and The Leading Edge – was down 6% to $139.4m. EBITDA fell by 38%.

BWM lost the $10m-15m Telstra account in May 2011, which led to eight people at the agency being laid off. Photon also highlights “three smaller agencies” for performing poorly over the last six months.

However, Photon has wiped out its debt from the sale of its field marketing and retail sales businesses. It has closed Counterpoint and Yield Media in the second half of 2011.