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Earnings

Huntsworth Reports Revenue Growth But Expects Shortfalls

Huntsworth reported a seven percent increase in like-for-like revenue for the period starting June 30, 2011. However, due to year-end cancellations totaling a whopping £4 million (about $6.32 million according to today’s conversion rate), the company says it will not meet profit expectations.

On the positive side, the company’s individual firms reported gains over the past few months. Citigate revenue is up 15.5 percent, Red is up 15.6 percent, and Grayling is up 5.2 percent. The company said that it won “seven-figure” international accounts.

But, the economy has taken a toll.

“The timing of these cutbacks coming so late in the year will not enable us to reduce costs accordingly. We therefore expect to fall short of management profit expectations by £4m,” company COO Sally Withey said in a statement.

Europe and the U.K. have been hurt by cuts across consumer, environmental, and CSR programs. In the U.S., the pharma industry has been uncertain.

FTI Consulting Reports Record Q3 Revenues, But Strategic Comms Lags

FTI Consulting, home to a number of consulting and business advisory groups including a strategic communications unit formerly known as FD, reported a 20 percent increase in revenue for Q3 ending September 30. Revenue totaled $413.8 million and organic growth was 11 percent.

The company said economic consulting and technology were among its biggest revenue drivers for the quarter, with Latin America and Asia showing strong results. However, the strategic communications area only showed three percent revenue growth to $51.8 million from $50.2 million for the same period last year.

“The segment benefitted from several key financial communications and restructuring projects, but it continued to be impacted by ongoing sluggish capital markets activity,” the earnings announcement said.

For the nine months ending September 30, revenue totaled about $1.18 billion. For more info about FTI’s earnings, click here.

MDC Partners Reports 33.4 Percent Revenue Increase, But Makes Adjustments

MDC Partners, home to Kwittken & Company, Allison & Partners, Lime PR, and other firms, reported a 33.4 percent increase in revenue for Q3; from $178.6 million in 2010 to $238.2 million for the same period in 2011.

Organic growth also took a leap, up 17.9 percent for the quarter.

However, in a statement, MDC CEO Miles Nadal said the company’s EBITDA guidance had shifted downward because of a “slowing of existing client work as well as some modest delays in new projects and campaigns.” (Here’s a definition of EBITDA.)

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WPP Launches a Marketing School in China, Reports 7.2 Percent PR Revenue Growth

Sir Martin Sorrell with a WPP School student.

WPP has launched a its School of Marketing and Communications in Shanghai in collaboration with the Shanghai Art & Design Academy (SADA). The school is the first in China to offer a three-year diploma for a marcomms program.

Fifty students have enrolled and classes started in September. More than 1,300 students applied. WPP will work with SADA on the curriculum and faculty hiring.

Also, WPP announced its earnings late last week, reporting a nine percent rise in Q3 revenue for the company and 7.2 percent for the PR and public affairs sectors. WPP is home to a number of PR firms including Burson-Marsteller and Hill & Knowlton.

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IPG PR Firms Show 10.8 Percent Organic Growth in Q3

Interpublic Group announced its Q3 earnings this morning, reporting 11.1 percent revenue growth in Q3 for a total of $1.73 billion. Organic revenue growth was 8.7 percent — 10.1 percent in the U.S. and 6.7 percent abroad. Operating income for the quarter was $173.2 million versus $100.2 million for the same time in 2010.

For the first nine months, revenue totaled $4.94 billion compared to $4.5 billion for the same period in 2010. Organic revenue increase was 7.5 percent and operating income was $301.9 million. Operating income was up from $218 million compared to the same time last year. Adweek credits the investment in Facebook for the results, which were better than expected.

IPG’s PR firms include GolinHarris, Weber Shandwick, and DeVries Public Relations. We spoke with Harris Diamond, CEO of the Contingency Management Group that houses the PR firms, which saw 10.8 percent organic growth for the quarter and 8.8 percent year-to-date organic growth.

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Netflix’s Reed Hastings: All Right, We Get It!

Photo: JD Lasica/Socialmedia.biz

Netflix took a beating yesterday like Rocky Balboa versus Apollo Creed. The company lost 800,000 subscribers over the quarter and a huge chunk of its stock value. Ugly! Still, its earnings beat expectations.

Netflix CEO Reed Hastings has gotten the hint and, during yesterday’s earnings call, made it clear that he’s been wrong about everything the company has done since the summer.

“In hindsight, it is hard to justify. Having separate brands can in theory make sense. However after the price increase, Qwikster became the symbol of Netflix not listening,” he said at one point.

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Publicis’ Reports 6.4 Percent Organic Growth, Warns About the Future

Publicis Groupe, home to PR firms including MSLGroup, announced Q3 results today showing €1.42 billion in revenue (about $1.96 billion, by today’s currency conversion rates) and organic growth at 6.4 percent. Revenue has reached €4.12 billion (about $5.65 billion) year-to-date ending September 30. Organic growth has reached 6.9 percent for the year so far.

The company’s SAMS division generated 50 percent of revenue, up from 48 percent in 2010. This division houses Publicis’ PR and digital businesses, including Digitas. Digital generated 30.2 percent of the company’s revenues and experienced 12.9 percent organic growth for the quarter. CFO Jean-Michel Etienne told PRWeek that organic growth for the PR firms is between eight and 10 percent.

(Side note: With all of that digital activity, the company should revamp its website. It’s terrible.)

New business cited includes Microsoft, McDonald’s, and Coca-Cola. Organic growth was greatest in Latin America and Europe (8.5 percent and 8.2 percent respectively); North America came in at 6.3 percent.

Despite all of the good news, the forecast isn’t quite so rosy.

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Revenue Up 19 Percent at Next Fifteen

Next Fifteen, home to Text 100, M Booth, OutCast Agency, and other PR firms, reported a 19 percent increase in revenue for the year ending July 31. Revenue totaled £86 million (about $135.7 million according to today’s conversion rate) versus £72.3 million in 2010.

Profits were also up 42 percent to £7.5 million (about $11.8 million). And organic revenue growth was 11 percent.

Among the business developments for the year was the investment in The BlueShirt Group and new clients including Disney consumer products, Zynga, and OpenTable. Also a few interesting facts: 30 percent of group revenue for the year came from the top 10 clients; North America and APAC account for 68 percent of revenue (the U.S. generated 52 percent of group revenue); and tech companies generated 69 percent of revenue.

For more detail about Next Fifteen’s earnings, click here.

Omnicom’s Global Revenue Increases 12.9 Percent in Q3

Omnicom Group has reported its third quarter earnings, announcing a 12.9 percent global rise in revenue to about $3.38 billion. Revenue for Q3 2010 was $2.99 million. Domestically, revenue was up 5.3 percent to about $1.7 billion from about $1.62 billion for Q3 2010. Internationally, revenue was up 21.8 percent to about $1.68 billion versus $1.38 billion for this quarter last year.

Omnicom firms include Fleishman-Hillard, Porter Novelli, and Ketchum. PR accounted for 9.1 percent of third quarter revenue, driving $307.1 million in revenue. That’s an increase of 9.7 percent year-over-year.

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LEWIS PR Reports 14 Percent Revenue Growth

LEWIS PR revealed its financial results for the year ending July 31, 2011, announcing a 14 percent jump in revenues to $35 million.

According to the earnings announcement, Continental Europe is the firm’s strongest region, bringing in 48 percent of revenue. Last October, the firm announced the acquisition of Page One PR, which is now LEWIS Pulse.  The firm also launched a new measurement tool, LSCORE, in August.

Commenting on the results and rankings published by The Holmes Report, LEWIS founder and CEO Chris Lewis writes on the firm’s blog, “2011 was our 16th consecutive year of growth. The agency is still debt-free, 100% employee-owned and continues to reinvest its profits back into the business every year. This was a major factor in the strong performance this year.”

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