M&C Saatchi PLC
11 October 2005
BRITISH AIRWAYS ADVERTISING CONTRACT
M&C Saatchi has today received notification from British Airways that it will
not be renewing the global advertising contract between the two companies.
The British Airways account represented approximately 7% of M&C Saatchi's
revenues in 2004. The impact of the loss of the contract has already been
partially offset by recent new business wins such as Tourism Australia, Ribena
and Weetabix, but profits will be somewhat reduced for the year ending 2005 and
more substantially reduced for the year ending 2006.
David Kershaw, Chief Executive of M&C Saatchi said:
'We are very sad that such a long and successful partnership has come to an end.
It is ten years since M&C Saatchi started working with BA, and 23 years since
the M&C Saatchi partners first worked with them. In that time we have helped to
grow and develop their business to become one of the world's most successful
airlines.'
BA was the catalyst that allowed us to build M&C Saatchi into the business it is
today. Ten years ago BA accounted for approximately 35% of our revenues. Since
then we have grown into an international advertising agency, adding direct
marketing, PR, digital marketing and sponsorship businesses and offices in 15
locations including London, Paris, New York and across the Asia Pacific region.
BA revenues now account for only 7% of the group's revenues annually.
'It has been a great partnership from which both our companies have benefited.
We both have exciting futures ahead of us.'
Enquiries:
M&C Saatchi 020 7543 4500
David Kershaw
Tulchan Communications 020 7353 4200
Miranda Acland / Peter Hewer
For further information and material on BA campaigns go to http://
www.mcsaatchi.com/BA
This information is provided by RNS
The company news service from the London Stock Exchange