Mobile app clients help Saatchi profits double

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The Independent Online

Soaring demand from clients who want to create apps and buy advertising on mobile devices helped M&C Saatchi to double annual profits to a record £16m, the ad agency group said yesterday.

Revenues at the agency, founded by Maurice Saatchi, leapt 20 per cent to £153m, with the mobile division doubling. Profits from mobile are now "in the millions", according to its chief executive David Kershaw.

Margins are better in fast-growing sectors such as digital because "clients are prepared to pay more for that which they know less about". M&C Saatchi also benefitted from new business wins including O2, Google and Vertu which outweighed the loss of Barclays.

The dividend rises 15 per cent to 4.5p. The four co-founders, including Mssrs Kershaw and Saatchi, who each own 6 per cent, should collect £171,000 a head.