M&C Saatchi Regulatory News (SAA)

11 Oct 2005 13:53

M&C Saatchi PLC11 October 2005 BRITISH AIRWAYS ADVERTISING CONTRACT M&C Saatchi has today received notification from British Airways that it willnot be renewing the global advertising contract between the two companies. The British Airways account represented approximately 7% of M&C Saatchi'srevenues in 2004. The impact of the loss of the contract has already beenpartially offset by recent new business wins such as Tourism Australia, Ribenaand Weetabix, but profits will be somewhat reduced for the year ending 2005 andmore 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 sincethe M&C Saatchi partners first worked with them. In that time we have helped togrow and develop their business to become one of the world's most successfulairlines." BA was the catalyst that allowed us to build M&C Saatchi into the business it istoday. Ten years ago BA accounted for approximately 35% of our revenues. Sincethen we have grown into an international advertising agency, adding directmarketing, PR, digital marketing and sponsorship businesses and offices in 15locations 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 4500David Kershaw Tulchan Communications 020 7353 4200Miranda 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