Grey reveals drop in US revenue despite overall revenue rise

By JOHN TYLEE,, Friday, 17 August 2001 12:00PM

Ed Meyer, Grey's worldwide boss, is bracing himself for a tough

trading period after the communications group said this week that its

revenues were being hit by cuts in adspend by hi-tech clients.

Weaknesses in the technology-related and telecoms sectors were a major

factor in a drop of almost 4 per cent in the group's US revenues for the

first six months of the year and by more than 7 per cent for the second

quarter. Net income also fell dramatically: it was $8.3 million

for the second quarter 2001, compared with $15.2 million in the

same period in 2000.

Disclosing the figures in its second quarter results, the group also

blamed a significant increase in severance costs incurred to reduce

expenses in the current climate for hurting earnings.

Nevertheless, the group reported a 3 per cent boost in gross billings,

which rose to $2.1 billion compared with $2.04 billion a

year ago.

At the same time, Grey reported continued growth in its international

operations with revenue rising by about 10 per cent for the quarter and

the half year.

Last month Grey Worldwide announced it was cutting 12 jobs at its London

office after the collapse of what would have been a £35 million

corporate campaign publicising the crisis-ridden Marconi's

transformation from a military supplier to a telecoms and IT specialist.

This article was first published on


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