Sra. Rushmore posted profits of 1.2 million euros in 2017, which is less than half of the figure obtained a year earlier, when they reached 3.1 million euros.
The fundamental reason for this decrease is the lower revenues obtained in the last financial year. The company’s turnover was 24.9 million euros, which is 8% less than the previous year. Of this figure, 15.2 million euros came from production (+3.2%) and 9.6 millon euros from fees (-22%).
Therefore, this is the second consecutive financial year where the creative agency has suffered a year-on-year decrease in revenue, since it reached its all-time high in 2015 with a turnover of 31 million euros.
Regarding expenses, Sra. Rushmore allocated 14.4 million euros to supplies (essentially, production purchases), which represents a 6% increase. It slightly reduced staff costs to 7.2 million euros, which constitutes a 7% saving. This cut did not affect the top management (made up of seven directors), whose salaries totalled 2.3 million euros, an increase of 15%. It should be taken into account that the workforce was reduced to 103 professionals, six fewer than a year earlier, due to several departures in the administration department.
Nevertheless, Sra. Rushmore remains one of the largest creative agencies in Spain by revenue level and, together with Ogilvy, is WPP’s flagship in Spain.
Sra. Rushmore’s revenue fell by 8% last year, with a 22% drop in fees.
Last year, WPP increased its stake in Sra. Rushmore, from 67% to 74% at the close of the financial year, after one of the shareholders sold 7% of the share capital last December. We should remember that Roberto Lara, former chairman and founder of the agency, announced his departure from the company exactly one year ago and sold his shares.
Since his departure, Sra. Rushmore’s management team has been made up of Miguel García-Vizcaíno (creative chairman), César García (general creative director), Marta Rico (general creative director), Eva Gutiérrez (CEO), Clemente Manzano (general manager), Marta Palencia (general manager) and Xisela López (executive creative director). A few weeks ago, Jorge Moscat also joined as general manager.
Last year, Sra. Rushmore won new contracts with Once, Bonduelle, Heineken, Coca-Cola and Dentix. However, they were unable to retain Flex. New clients joining the agency’s traditional ones include, among many others: Mini, Atlético de Madrid, Iberdrola, Línea Directa, SER and Vodafone.