Chime pre-tax profits up 70% fuelled by London 2012
Chime Communications' profits increased 70% year on year to £25.3m in 2012, buoyed by the Olympic success of its sports marketing division and despite new business costs hitting ad agency VCCP.
Compare the Market: VCCP account
Chime’s sports marketing division had a particularly successful year due to sponsorship deals at the European football championship and Olympics with operating profit of £15.8m, up 158% year on year.
Although Chime’s headline pre-tax profits showed healthy growth, the group’s reported pre-tax profits declined by 86% year on year to £2.5m in 2012 due to changes to guidelines on how earn outs are reported.
The group's advertising and marketing services division, which includes VCCP, saw operating profit fall 34.3% from £6.7m to £4.4m in the year to 31 December 2012. Margins for the division also slipped from 13.6% to 8.1% for the year.
Chris Satterthwaite, the chief executive of Chime Communications, said: "Our advertising companies have grown 10% in operating income, which shows they are winning market share.
"But profits were down because it was a year of major investment for the advertising division, in that we opened offices in Sydney and Madrid and launched start-ups VCCP Content and VCCP Media.
"There was also a high level of pitch costs, because VCCP were pitching so much."
VCCP won 12 pitches last year, more than any other agency according to AAR.
Improving margins will be a focus for 2013, Satterthwaite said.
He said: "I fully expect the margin to return this year, because we’ve won good business in 2012 which will come to fruition, and we have no immediate plans to launch more start-up offices."
Overall income at the group was £157.5m in 2012, up 20% year on year.Follow @LouiseRidley
This article was first published on campaignlive.co.uk
Latest jobs Jobs web feed
- Account Director- Exciting Online Content Marketing Company- Up to £70,000 plus OTE Cedar Scott Up to £70,000 basic (up to £90,000 OTE) plus share options, Central London
- Global Product Manager Evans Taylor c£50k - c£60k p.a. plus car, bonus and benefits, North East of England or Central London
- Brand Manager Radisson Blu Edwardian, London Competitive , South Kensington, London
- ACCOUNT DIRECTOR/SENIOR ACCOUNT DIRECTOR - BTL/SP/Brand Experience - London - £45 - £55k plus bonus Judi Patton £45K-55K plus bonus, London/Greater London
- Senior Planning Director, International Agency, London, to £120k Fill Recruitment Ltd to £120,000, Central London
- Interim Head of Marketing & Communications Brand Recruitment £50000 per annum, Brentwood
Integrated digital marketing offers huge opportunities to engage, servic...
Mobile marketing is coming of age, and the pace of change is now exponen...
With UK consumers spending an average of £1,083 a year online, int...
Conversational Mobile Marketing: Engage Customers and Empower Advocates (Expert Reports) External website
The pressure is on for marketers and mobile operators to embrace a strat...
As a nation, the UK is media and technology obsessed with over half of t...
All customers have the potential to become your brand advocates, driving...