Football superstar Cristiano Ronaldo has been partly responsible for the 'best yet' year at M&C Saatchi, who have enjoyed a record year in both revenue and profit. CEO David Kershaw thanked huge contract wins such as coffee firm Douwe Egberts and CR7, the range of underwear owned (and modelled) by the Portuguese forward, a brand that will gain significant traction ahead of the World Cup.
The CR7 brand has been, and is expected to be a future big performer for the agency
The CR7 brand has been, and is expected to be a future big performer for the agency. The brand was created by Ronaldo and Scandinavian clothing manufacturer JBS Textile Group, and the garments themselves were designed by Ronaldo and New York designer Richard Chai. M&C Saatchi Sport & Entertainment CEO Steve Martin aims to use “Integration across above the line, and below the line activity” in their marketing approach for launching the brand's second collection this year, to ensure “360 degree thinking, consistency of message and a thorough approach.”
Kershaw announced pre-tax profit for M&C Saatchi up 8% to £18.6 million, on revenues 5% higher at £177.4 million, and said one of the markets that had seen the most growth was the UK. “The UK has done very well with some good new business”, he said, “Lida and mobile continue to be our star performers.” The UK marketing spend will grow by between 3% and 4% this year, which he said feels positively healthy after the recession. The UK reported sales up by 13% and operating profit up by 12%, which was driven by hastily growing advertising platforms such as digital and mobile. Overall revenue growth of 8% is expected this year, with a new New York office thought to be the “Final piece of the jigsaw” in winning new US business and expanding the agency's presence in the United States. Kershaw also hopes to move into growing sectors such as Thailand, Indonesia, Mexico and Turkey next year.
M&C Saatchi closed at 297 pence on the London Stock Exchange just 2 days ago, an 80% leap
Popular campaigns for the company that handles prestigious brands such as the RBS, LG Electronics and Ikea, include the 'Good to Know' campaign for Google and the NHS's 'Change 4 Life' promotion amongst many others. The company was founded 19 years ago by Charles and Maurice Saatchi and raised its dividend for the year from 4.95 pence to 5.45 pence and closed at a staggering 297 pence on the London Stock Exchange just 2 days ago, an 80% leap, though they were marginally back down to 296 pence yesterday.
Kershaw also thanked Chancellor George Osborne's Budget as a contributing factor to the agencies stellar year, exclaiming that he believes the budget has “Reaffirmed people's feelings that the world is getting better,” and that it has given hope that “The socialists won't get back in and screw it all up again.” He also feels the agency's investment in digital has helped them claim additional business from companies such as De Beers and Boots, who have seen the way the agency has deftly integrated “The digital side into the main agency.”
Benjamin Hiorns is a freelance copywriter from Kidderminster who buys all of his underwear from TK Maxx and is not ashamed to admit it!
