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The Marketing Group reveals Q3 results

The Marketing GroupThe Marketing Group, a Singapore-based collective of small agencies that has building rapidly by acquisition this year, has announced its financial results for the third quarter ending 30 September, having bought 12 agencies in that time.

The group, which hired a chief executive earlier this month and floated in June this year, says that it has a “strong near-term pipeline of high quality, fast growth agencies” ready to join the group.

Its last acquisition was Singapore ad agency Addiction Advertising in September, and the financial results exclude the acquisition of Astute, which has not yet been completed.

The results:

  • Turnover of €6,188,327 million*
  • EBITDA of €614,365 million*
  • Net income amounted to €511,268 million*
  • Earnings per share of €1.79 cents*
  • 12 new companies acquired
  • Wholly owned subsidiaries at the end of the period total 18
  • Total number of employees is 250*

Nine months to 30 September:

  • Turnover of €8,596,496 million*
  • EBITDA of €1,310,047 million*
  • Pro forma turnover with all companies contributing a full 9 months of €28,191,275 million
  • Pro forma EBITDA with all companies contributing a full 9 months of €4,381,547 million
  • Earnings per share of €3.3 cents*

In a note to shareholders, chairman Jeremy Harbour wrote:

I am pleased to report that during the third quarter we have continued to make excellent progress delivering our strategy aimed at building a leading global marketing and advertising company by adding a further twelve new businesses to the group. Each acquisition was accretive to earnings per share (EPS) and was strategically selected to enhance our service offering and strengthen our position in key international markets.

As of 30 September 2016 The Marketing Group stood at 18 subsidiary brands with 31 offices in 8 countries, delivering outstanding services to clients in the USA, Europe, Asia, Australia and New Zealand. Our service offering is becoming increasingly focused on digital capabilities, which we believe are transforming the marketing and advertising industry and for which we are seeing the greatest demand from our clients.

Our digital offering is highly specialised and yet at the same time is becoming increasingly diverse, ranging from media buying and production to digital communications, from e-learning to game development and from digital advertising to brand development.

We are more and more looking for opportunities to enhance the profitability of each of our subsidiary brands through collaboration and synergies that enable the Group to offer a more cohesive client service. To this end, on 15-16 September we held our first Founder’s Summit, which brought together the leadership of each subsidiary business and our Executive Board to discuss opportunities for greater cooperation to support organic growth.

The appointment of Adam Graham as Chief Executive of The Marketing Group will also help to facilitate greater coordination between subsidiaries. Adam’s appointment, together with that of Mats Lundkvist as a non-executive director and Carl Thunström as investor relations advisor, significantly strengthens our senior leadership team, corporate governance structures and investor communications capabilities.

For the rest of 2016 we plan to continue to add new, profitable, debt-free companies to the group, in the same manner as we have done so far. We have a strong near-term pipeline of high quality, fast growth agencies ready to join the group, many of which had been identified by Adam Graham ahead of his appointment as our CEO.

Through our acquisition strategy we are rapidly building a company that can compete with the major global networks in terms of service offering and geographical reach. This journey has only just begun but I am confident that the Group will continue to grow from strength to strength and create value for all our shareholders.

Thank you all for being a part of our journey.

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