LONDON (ShareCast) - M&C Saatchi inched higher Tuesday as the advertising agency reported a 64% increase in first half pre-tax profit as Europe and North American moved into the black for the period.

The firm posted a profit before tax of £3.3m on a reported basis for the six months ended 30 June, up from £2m a year ago, on revenue 8% better at £37.3m.

“The significant increase is due to the continued growth in the UK but more importantly due to the reversal of losses in both America and Europe, as they both exit investment phases,” it said.

UK revenue grew by 8.6%, driven by a bright performance from Walker Media and good new business wins elsewhere.

Revenue in Europe jumped to £2.1m from £0.5m and contribution to group pre-tax profit grew by £1.1m to £0.1m versus a £0.1m deficit last time. The US delivered a positive contribution to operating profit of £0.1m against a £0.2m loss in 2006.

“Whilst Asia and Australia has had setbacks, we are currently undertaking an intensive review to re-energise the business,” said chief executive David Kershaw.

“The outlook for the rest of the year remains in line with current expectations and we are confident of further significant progress in 2008.”

The interim dividend goes up by 13% to 0.87p per share.

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