Profitable Public Relations
The strong economy pre-pandemic delivered good growth and profits for leading PR consultancies, writes Robert O’Brien
Some of Ireland’s largest PR consultancies are allied to global public relations players. Edelman Ireland, established in 1981, booked a profit of c.€390,000 in 2019, following a net gain of €330,000 the year before. With 39 people on the payroll, the debtor book value increased by 16% in 2019 to €3.2m and the company had year-end net worth of €1.7m.
FleishmanHillard in Dublin has its origins with John Saunders, who took up a global role with the American giant in 2015. The Dublin company FleishmanHillard International Communications recorded revenue of €9.9m in 2019, down 12%, and net profit of €820,000, up 20%. The Dublin office generates one quarter of turnover outside Ireland, and 32 people were on the payroll in 2019.
Hanover Group opened its Dublin office in 2017 with a two-year revenue target of €2m-plus. In 2018, revenue was €860,000 and the turnover figure was not disclosed in the 2019 accounts filing. However, trade debtors improved almost 60% year-on-year to €458,000. Hanover was acquired by Montreal’s Avenir Global in 2019.
Hume Brophy has offices in Dublin, Brussels, Singapore, Hong Kong, Frankfurt and London. Dublin-registered Hume Brophy Communications Ltd had turnover of €6.8m in 2019 and a gross profit margin of 49%. Administrative expenses reduced by 40% through 2019 and the company booked a net profit of €1m. A dividend of €500,000 was paid in 2019, while directors’ remuneration totalled €1.2m. The company had 37 employees on the payroll in 2019, as well as the five directors.
Some indigenous PR consultancies generate strong income streams too. At Q4 Public Relations four founder directors and key account management personnel shared c.€2.7m in 2019. At MKC Communications, the two founders shared directors’ remuneration of €550,000 and pension contributions of €270,000. At Gibney Communications, four directors shared €440,000 remuneration in 2018/19, down from €680,000 the year before.