Grey reveals drop in US revenue despite overall revenue rise
By JOHN TYLEE, campaignlive.co.uk, 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
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 campaignlive.co.uk
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