Chime rings up the profits

Chime Communications has posted first half results significantly ahead of 2011, boosted by the contribution of its sports marketing division.

Operating income for the six months to the end of June was £73.7m, up 33% on 2011. Profits before tax were £10.9m, 47% ahead of the prior year while earnings per share increased 32% to 9.3p. The interim dividend has been increased by 1% to 2.1p.

Over the last six months Chime has disposed of several legacy Bell Pottinger businesses, raising £19.6m, while retaining a few to complete contracts.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Chime makes no secret of its desire to cash in on the sports marketing boom, quoting figures from PwC forecasting global sponsorship growth of 5% per annum and the £800m raised by the London 2012 Olympics. Apparently Brazil is attracting even higher levels of interest than London - which makes sense for a high growth economy which corporates are desperate to establish themselves in.

Chime has made 10 acquisitions in the sports marketing universe and the unit now has operating income of over £55m.

Chime's Chief Executive, Christopher Satterthwaite, said: "We are reporting strong income and profit growth in our continuing businesses whilst evolving into an international communications and sports marketing group. We are now well positioned in these high growth sectors, especially sports marketing, which has become the leading way for global brands to engage their audiences as the 2012 Olympic and Paralympic Games have demonstrated."

At 11:09 Chime shares were up 1.3% and have now climbed 17% since the start of the year.

BS