Holding Company Reports Strong Quarter
CHICAGO--Europe will continue to be the focus for acquisitions by True North Communications, the holding company's executives told analysts last week.
Chicago-based TN will target additions for BSMG and Marketing Drive Worldwide as well as healthcare agencies under the FCB banner and additions to the FCBi digital division, chief executive officer David Bell said.
TN reported its strongest quarter in a while, with net income up 29 percent, to $27 million, and revenue up 10 percent, to $375 million, for the quarter ended June 30, compared with the same period last year.
Most of the growth was attributed to new business, including global wins of the Compaq and Boeing accounts and global additions from Bristol-Myers Squibb, Lucent spin-off Avaya and Archer Daniels Midland.
Organic growth was reported at 9.3 percent, compared with 3.9 percent a year ago.
Other items from the quarterly report:
- Dot-com business represents about 5 percent of the company's total revenue.
- Bell's collaboration mantra for TN units has started to bear fruit, as the company said 200 TN clients use at least two divisions and 25 use four or more. K