UK digital agencies recover from crash

The UK's digital agencies have returned to profit for the first time in four years, according to a report analysing the performance of the UK's 35 largest new media agencies.

The survey, conducted by New Media Agencies Financial Intelligence, found that i-level, Outrider, Agency.

com, AKQA and Dare were the best-performing digital marketing agencies, based on factors including operating profit, operating margin, revenue per head, profit per head and working capital.

The mobile marketing agencies WIN and iTouch topped the table, followed by the technology specialists Nettec, Sapient and Oyster Partners. I-level was in sixth place, followed by Outrider, Agency.com, AKQA, Dare and 3T Productions.

Bob Willott, the editor of the report, said: "Only four out of 35 companies incurred an operating loss - the smallest number since our survey was first published in 2002. After allowing for non-operating costs such as interest charges, 29 of the 35 companies still achieved a profit."

The recovery has been attributed to improved productivity, with agencies billing more without having to increase staff numbers.

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