Bure subsidiary Citat delivers record year

2007 was the best year on record for the communications production group Citat, which expanded its market share and increased its sales by 36 percent. Profitability improved further to an agency margin of 11 per cent. Net sales exceeded SEK 500,000 million for the first time, with an operating profit of SEK 42 billion.

2007 saw rising demand for both editorial and marketing services and the market grew by 5 per cent according to the Institute for Advertising and Media Statistics (IRM). Over the same period Citat’s sales grew by 36 percent, of which 13 percent was organic, which means that Citat increased its market share during the year.

Citat has expanded dramatically since the current strategy was established in 2006 and the group now has an enterprise-wide offering in the key specialist disciplines of Editorial Services and Marketing Services. Several of the subsidiaries are considered leaders in their segments, as confirmed by a number of awards and prestigious endorsements during the year. Among other things, Citat’s overall offering was featured in the Advertising Association of Sweden’s annual compendium for 2007, where the Marketing Services business area is mentioned as the country’s second largest advertising agency and Editorial Services as one of the country’s largest PR companies.

Net sales reached SEK 511 million (377)
Agency revenue increased to SEK 397 million (309), equal to organic growth of 13 percent
Operating profit*) was SEK 42 million (27), equal to an operating margin of 8.3 per cent (7.1)
The agency margin was 10.7 per cent (8.7)
Profit before tax amounted to SEK 74 million (26)

*) Excluding capital gains of SEK 31 million in 2007

“We are highly pleased with Citat’s performance in delivering both record earnings and strong growth in 2007,” says Bure’s CEO Mikael Nachemson.

Göteborg, 6 February 2008
Bure Equity AB (publ)