Marketing Services Financial Intelligence

* Privately-owned marketing agencies having difficulty growing income, maintaining margins and conserving capital * Private equity playing an increasingly significant role

Weaker companies have bolstered their capital, sold out or failed

Survey of 28 largest global marketing groups shows: • 4.2% overall increase in revenues. • 4.4% overall decline in post-tax profits. • Finance costs pruned by 4.7%. • Despite tough economic climate, operating profit margins improved.

The news that Publicis has proposed marriage to Omnicom is momentous enough (see Publicis-Omnicom merger envisages $0.5bn cost savings), but will their corporate personalities be compatible?

Last year's deal concluded series of transactions over 15 years that marked the end of private ownership of this iconic advertising agency

“At the heart of the matter is a question about the effectiveness of the WPP board in handling how much the chief executive is paid and what plans are in place for succession”

Recipients of marketing group M&C Saatchi’s 2012 financial results have been recommended to throw the document away by the industry’s online financial magazine Marketing Services Financial Intelligence (www.fintellect.com).

The International Accounting Standards Board came in for strong attack after one of its rules required the publicly listed marketing group Chime Communications to charge against profits nearly £12 million paid to acquire subsdiary companies.

Four directors earn share awards yielding a gain of £1.7 million each

“Private Plums” awards for 2012 announced...Three winners have already attracted a takeover bid or private equity funding...Survey shows increasing number of privately-owned agencies achieved a 15% growth rate despite the economic gloom.