Article
Dog days
Sony contract helps Saatchi to reach record year
Advertising agency Saatchi & Saatchi scooped more than $1bn (£625m) of new business worldwide last year but saw its profits slip at home after losing a contract to promote the National Lottery.
The company's biggest new customer was Sony Europe, which will generate billing of over $100m. Sony is poised for a European launch of Aibo, a mobile electronic dog which has been a big hit in Japan.
Saatchi chairman Bob Seelert said: "It's been the best new business year for us ever. We've really led the industry."
Saatchi gained $340m of extra contracts from Procter & Gamble, the US household products group, and $200m of revenue from internet start-ups.
Excluding exceptional items, operating profits increased 10.2% to £34.6m.
However, the UK contribution fell 7.9% to £7m after Saatchi's It Could Be You campaign was dropped by the lottery operator Camelot.
Mr Seelert said: "We created icons in British advertising - people still remember our stuff more than lottery stuff which has been done since.
"But new people came into the business and new people want to work with people they've worked with before. It all started going wrong."
Saatchi's shares slipped 20p to 417p.