"Mosaic Group marketing profit surges"
May 10, 2000
TORONTO (CP) - Mosaic Group Inc., (MGX) which does everything from
tracking supermarket purchases to interrupting dinner with telephone sales
pitches, has reported an 80 per cent rise in quarterly profit on a 20 per cent
increase in revenue.
Mosaic Group, billing itself as Canada's leading outsourced marketing services
agency, said Wednesday that first-quarter revenue was $98 million, with net
earnings of $3.2 million, up from $1.8 million a year earlier.
Coincidentally with releasing its quarterly results, Mosaic announced the
largest contract in its history, a 10-year deal with Information Resources Inc.
Mosaic will handle the American company's data collection, managing a
2,400-worker field force gathering merchandising information from stores
across the United States for IRI's packaged-goods clients.
First-year revenue under the contract will be about $50 million, said Mosaic,
whose services include electronic marketing, e-commerce, new-media
services, contract sales, merchandising, field marketing, direct marketing,
database management, product promotion, corporate communications and
sales-force training.
Mosaic's electronic marketing businesses "are growing rapidly, but at the same
time are focused on delivering bottom-line results," Michael Preston, chairman
and CEO, said in a statement releasing the quarterly results.
Mosaic and its digital-economy subsidiaries have recently signed major
contracts with Ontario Hydro Energy, General Motors and DaimlerChrysler,
and in April the company announced a deal to take a majority interest in
Medium One, a Web site design firm.
"All of our e-businesses are profitable," Preston asserted, adding that Mosaic
has set aside $15M for an incubator to take minority interests in promising
private e-commerce and e-marketing companies.
In addition to the IRI deal in the United States, Mosaic is operating two
regional marketing efforts for United Distillers and Vintners, supporting the
Bailey's, Smirnoff , Cuervo Tequila and Stolichnaya brands.
¸ The Canadian Press, 2000 |
