Stuart Mitchell, CEO of Mitchell Communications Group, Australia?s largest media buying operation, is stepping down for a six month sabbatical, the company has announced.
It came in the company?s half yearly results, which reported that billings for the six months up to the end of 2009 were $661m, up 6% on the same period a year before. The announcement said:
?Upon announcing the half year result, Executive Chairman, Mr Harold Mitchell also advised that Mr Stuart Mitchell, Chief Executive Officer, after 18 years of service with the Company, would be taking a six month sabbatical. During this time, Mr Stuart Mitchell will continue to be a director of the company. Operationally, the company will be run by Mr Luke Littlefield, Chief Operating Officer and the executive management team overseen by the Executive Chairman, Mr Harold Mitchell.
?In commenting on business conditions since 31 December, Mr Harold Mitchell noted that the momentum experienced in November and December of 2009 has continued into the new calendar year.
Although the announcement implies that Stuart Mitchell will return to the company, the move will renew speculation over his future commitment to the group, which was founded by his father Harold.
The company reported EBITDA (earnings before interest, tax, depreciation and amortisation) profit for the period of $15m ? roughly the same as the corresponding six months a year before.
The company said that the growth of its media business had been driven by its acquisition of Starcom?s WA operation along with more than 50 new client wins. It said it was now the number one in Melbourne, Brisbane and Perth.
However, media billings were down by 22% in recession-hit New Zealand.
It was a similar story for digital, with the company?s billings down by 25% in New Zealand but up 22% in Australia.
The company also reported: ?launch of social media unit achieving results ahead of expectations and playing an important role in our digital integrated offering?.
However, the company?s diversified businesses had a bad six months with a drop in billings of 3% and drop in EBITDA of 48%. This included the company?s PR businesses and stadia media operation.
The company has also lined up a $90m debt facility which it said was for potential acqusitions and general corporate purposes.
The report also predicted a 5% increase in total ad spend in Australia this year.
