EMAK Worldwide, Inc., the marketing services firm and parent of Equity Marketing & Logistix and Upshot, is expecting an 8% drop in 2008 revenue to $150 million.
More than half of the decline is attributed to revenue falloffs in its European operations after clients made “drastic reductions” in promotional programs from levels four years ago due to restrictive industry standards, the company said citing preliminary results for the fiscal year ended Dec. 31.
The firm closed the London office of Logistix in the third quarter and said it will liquidate its remaining European operations in France, Germany and Holland over the next six months. Five percent of EMAK’s workforce, or 17 employees, will be affected.
The U.S.-based agencies, including Equity Marketing & Logistix (U.S.), Upshot, and Neighbor are showing improvement and the company said it expects these agencies to lead the charge for continuing profitable growth in the coming years.
The net loss for 2008 is expected to be about $2.5 million, compared to $7.6 million in 2007.
Equity Marketing & Logistix ranked No. 34 on the
2008 Promo 100 with estimated 2006 revenue of $26 million. Upshot ranked No. 46 with $17.4 million.
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