Media Square expects revenue to fall

Marketing services company Media Square has announced that its half year revenues will drop about 5% lower from the same period a year ago. However, it maintains that it expects a “significant rise” in its operating profits on a like-for-like basis.

Media Square blames the withdrawals of some of its clients and the cut backs on marketing spends by its other clients for the plunging revenues. The company also blames the continued fragile economic conditions and consumer slowdown in the UK for its poor interim revenue.

In 2007, Media Square posted a revenue of £85.3m. The company is adopting a “cautious approach” and says that its results for the full financial year will be in tune with the market expectations.

Media Square offers services in advertising, marketing, design and research. Its agencies include financial services specialist The Gate, direct shop CMW and digital marketing agency Twentysix.

Earlier this year the group restructured, resulting in costs of about £5m. At the time, executive chairman Roger Parry (pictured) said the company had gone through a “traumatic period of painful self-evaluation and costly restructuring”.

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