M&C Saatchi’s Asia Pacific revenues drop 11.6% following loss of David Jones account

M&C Saatchi Logo-2015

M&C Saatchi has posted an 11.6 per cent drop in revenue in Asia and Australasia, with the loss of the David Jones account to Whybin\TBWA cited as a major contributing factor.

The agency’s full-year results show regional revenues of $85.04m (£44.17m), down from $96.128 (£49.961m) at the end of 2013. Like-for-like revenues were down one per cent year-on-year for the region, whilst operating profit was up 10 per cent.

The Asia and Australasia operations, which includes offices in Sydney, Melbourne, New Delhi, Mumbai, Kuala Lumpur, Hong Kong, Beijing, Shanghai, Singapore and Tokyo, posted a headline profit before tax of $9.643m (£5.01m), up from $8.639m (£4.49m) at the end of 2013.

Regional revenues were impacted by account losses in New Zealand with the network taking the “strategic decision to close” the NZ office as a result in the middle of last year.

According to the final results for the year, M&C Saatchi’s Australian offices had “an outstanding new business run in 2014”, winning NRMA Insurance, Lexus, A2 and Cricket Australia.

“Malaysia made a terrific contribution, maintaining their exceptional performance. In India, we reproduced our Chinese model acquiring 20 per cent of February, a Delhi based agency. Singapore was appointed on an Asian regional basis for Jaguar and continues to win government assignments,” the results read.

And in China, M&C’s relationship with Chinese independent creative agency Aeiou “progresses well with the win of some Microsoft business”.

Overall the group posted a five per cent growth in revenue up from $311.748m (£162m) to  $325.223m (£169m) for the financial year ended December 31, 2014, resulting in a profit before tax of $33m (£17.14m), an increase of 17 per cent on 2013’s profit of $28.104m (£14.6m).

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Click to enlarge

M&C Saatchi chief executive David Kershaw said in a statement: “2014 was another year of excellent progress for M&C Saatchi. Our strategy of consistent growth through winning new business and starting new businesses continues to deliver good results.

“We have invested and upgraded and now feel we have the network span and depth of capabilities with which we can significantly develop our international client portfolio.

“We are confident we will continue to make good progress in 2015 and beyond.”  

Miranda Ward


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