Study: PR firms report 15.6 percent profitability in 2010

The annual benchmarking study said profitability levels have rebounded after hitting a four-year low in 2009.

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The annual Benchmarking survey from StevensGouldPincus found that profitability levels have rebounded to 2008 levels, when they were also 15.6 percent. In 2009, profitability had fallen to 13.5 percent of annual revenue.

StevensGouldPincus (SGP), a mergers and acquisitions consultancy in New York, surveyed 104 PR agencies nationwide.

Dragging down the percentage are the firms with net revenue under $3 million annually, which reported an operating profit of 13.1, up from 10.4 percent in 2009. The firms with revenue between $3 million and $10 million reported 16.2 percent operating profit, while the firms with $10 million to $25 million in revenue saw 17.8 percent profit. Firms in excess of $25 million netted 16.5 percent.

All four categories experienced growth from 2009, the study said.

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