Revenues grow at Grey Global despite SARS and Iraq

NEW YORK – Grey Global Group reported a rise in first-quarter revenues despite the generally weak global economy, SARS and the uncertainties brought on by the war in Iraq.

Income before taxes grew 6.7% for the quarter to $11.1m (£6.9m). Grey said the increase was due in part to ongoing cost cutting. Net income was $5.1m for the quarter, compared with $4.3m for the same period the year before.

For its full-year results, reported in March, Grey Global said income fell by 1.4% during 2002 to $1.19bn as the group described its performance as "essentially flat".

Grey Global, which owns the Grey Advertising network, MediaCom and PR network GCI, said billings for the quarter were up 4.2% on last time to $297.6m. The group said revenues were boosted by the strengthening of European currencies coupled with modest growth in North America.

In a statement, Grey said: "The company's revenues for the first quarter increased despite a generally weak global economy, SARS and the uncertainties of the Iraqi situation. Revenue comparisons with last year were helped by the strengthening of the European currencies against the dollar, offset somewhat by the decline of Latin America currencies since the first quarter of 2002."

Grey said it continued to win business around the world including, most importantly, new accounts from its major clients. The wins included Grey Worldwide winning the £64m global launch of Nokia's new gaming mobile phone, the N-Gage.

Of the Nokia N-Gage win, Grey said it required the group to establish with the client its ability to execute outstanding creative collaboratively and simultaneously throughout the world.

Internationally, Grey also won new business from Procter & Gamble, Mars, GlaxoSmithKline, 3M, British American Tobacco and the consolidation of electrical appliance manufacturer Remington with Grey Worldwide London.

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