Chime Communications reports first half pre-tax profit fall
Chime Communications has revealed a pre-tax profit like-for-like decline of 18 per cent for the first half of the year, following its agreed buyout by WPP and Providence Equity.
The communications company reported a pre-tax profit of £14m for the first six months of 2015, down from £16.5m the previous year, although it’s operating income grew by four per cent to £102.6m.
Overall, operating profit was down by 16 per cent to £15.2m, however chief executive Christopher Satterthwaite said that he was “pleased” with the group’s first half year.
"Sport and Entertainment was lower than the previous period 2014, which saw our involvement in the FIFA World Cup and Winter Olympics. The second half of the year will see a benefit from the timing of sports events including the UK Rugby World Cup and Ashes Series, as well as the continuing strong performances of our marketing services businesses: VCCP, Open Health, CIE and the Chime Specialist Group".
Included in the figures are £1m of restructuring costs for the Sport and Entertainment division, now run by chief executive Zak Brown. The company also explained that this year’s figures were down in comparison with a FIFA World Cup year which saw enhanced operating income and profit in 2014.
The £374m acquisition deal was unanimously agreed by the board of Chime Communications last month and is expected to be completed later in the year.