DOES M&C SAATCHI’S OUTLOOK OFFER ANY HOPE?
FIONA ORFORD-WILLIAMS EDISON INVESTMENT RESEARCH
Marketing spend is still heavily constrained, with continuing pressure on fees, but it does look like a base level is being reached and comparatives are becoming easier. The group is sensibly using its strong balance sheet to invest in new offices ahead of any market improvement.
CLAIRE ENDERS ENDERS ANALYSIS
The results were better than most in the industry. I think this is because they are more specialised in what they do, being known as a creative
powerhouse. It shows that having a focus on doing something exceptionally well is a bulwark at times like these.
PAUL RICHARDS NUMIS SECURITIES
The interim results are in line with our forecasts. Despite the challenging economic environment the company has continued its strategy of investing in new geographies (Geneva, Sao Paolo & Tokyo) and the early signs are promising. Whilst we expect advertising spend to remain under pressure for the rest of 2009, we think this has been priced into the shares.