By Louise Ridley, campaignlive.co.uk, Wednesday, 06 March 2013 12:25PM
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
The games console as we know it is dead. When Microsoft unveiled the Xbox One earlier this week, it was clear that this was more than a device that would enable you to play Call of Duty or FIFA – this was, in Microsoft’s own words, “an all-in-one home entertainment system”.