Thinking global costs STW
Communications group STW has announced a reduction in revenue and profits in the first half of 2009 mainly caused by its international clients reducing their spend.
The company – part owned by WPP – today said it had received revenues of $131m, down from $145m in the same period last year. And underlying profits before interest, tax, depreciation and amortisation (EBITDA) was down from $31.4m to $27.8m.
STW has interests in more than 70 agencies and communications companies including Badjar Ogilvy, Howorth PR, Ikon Communications, JWT, Maxus, Mindshare, Moon, New Dialogue, SOM, The White Agency and The Brand Shop.
STW’s CEO Michael Connaghan said: “We have seen a tougher trading environment in the first half of 2009 compared to the prior corresponding period and this has impacted on the overall result.”
He said that revenue from globally-aligned clients was down by 15%, while local business was up 5%.
STW’s results follows yesterday’s from rival communications group Photon which saw a modest increase in profit and revenues.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
Linkedin
Guess they’ll just have to squeeze even more money out of their suppliers then.
User ID not verified.
Oh SNAP Tony, SNAP.
User ID not verified.
Double SNAP!!!
User ID not verified.
I heard O&M just landed themselves a significant piece of NSW business… much to the horror of its previous 9-year incumbent…
User ID not verified.