Manjgura with the highest revenue growth in 2020 – a review of the business of Croatian PR agencies 2019-2020.

Posljednja izmjena June 23rd, 2022 u 13:24

When we tried to unite all Croatian PR agencies in one place in the blog Directory of public relations agencies in Croatia, we were first surprised by a large number of requests for inclusion in the list, so we came up with the idea to meet this year’s first HUOJ conference after the pandemic, which will talk about business in these two pandemic years, based on this list, we try to analyze the business of PR agencies in Croatia in 2019 and 2020.

In 2021, the market has already recovered quite a bit, so after the publication of these new data on public sources, we will post market trends for all three years. We used business data available in the Business Croatia database.

We first entered data for all agencies that contacted us to be on the list and got that 78 companies on the list had 634 employees, only 4 less than before the pandemic, but therefore as many as 88 more than in 2017.

As expected, revenues fell significantly in 2020 to HRK 698.64 million compared to HRK 772.15 million before the pandemic (a decrease of HRK 73.51 million, or a relative decrease of 9.52%). Interestingly, profit before tax, EBIDA, nevertheless increased from 71.09 to HRK 74.92 million in 2020 (HRK 3.83 million more, or 5.39%, which indicates significantly more efficient operations in a pandemic). Given that this blog is also a small exercise in statistics, it is important to note here that the listed communications companies make up approximately 50% of the communications services market estimated at just over HRK 1.5 billion, which should be taken into account when interpreting the results.

The average salary of all employees in the agencies on the list was 3.28% lower in 2020 and amounted to HRK 5,873.62 (I am still checking what is included in the net amount calculated in the database – it should be all net payments to employees, but if you have more information contact me).

Of course, we were interested in how Manjgura stands concerning other agencies that mostly do public relations or are at least recognized as such, so we tried to put together a review of these agencies in 2019 and 2020, given that today we have all submitted business results for 2021 and we can all see for ourselves where we are compared to last year, and it will be a good basis for discussion at the HUOJ’s Conference.

For Manjgura, 2021 was a record year with the highest revenues so far of a total of HRK 10.59 million and a profit after tax of HRK 1.46 million, and we believe that for many colleagues, 2021 was a year of good business growth. We are especially pleased with this result because this year we are celebrating 25 years of Manjgura’s business – We are celebrating #ourfirst25!

In 2020, we were 7th in terms of revenue among these agencies (all listed agencies were recognized as agencies that mostly provide public relations services and which generated at least HRK 1 million in revenue in 2020). Some of these agencies, such as the first on this list, 404, generate most of their revenue by providing other services as well, but this is a trend of service integration present in all agencies, so we have developed several comparison criteria by which you can assess the performance of each agency.

So, we were 1st if we looked at revenue growth in 2020 in absolute terms and it is a measure of revenue growth regardless of the size of the agency, although the smaller agencies grew the most.

Smaller agencies can grow more and we have achieved an incredible growth of 101%, although Manjgura’s former employee Gordan Turković’s CTA communications grew even faster by 154%, and Blanka Tomašić, who first knocked on Manjgura’s door in her beginnings, in 2020 she grew 111 %. Well done to colleagues, but also to Katarina Leko, our director who is most responsible for this great growth of Manjgura in the past two years.

If you look at revenue per employee, you can see which agency is working most efficiently in terms of the number of employees and we are at the very top, at 4^th place, with HRK 1.16 million per employee.

Of course, it is important how much you earn in the end (EBIDA is the revenue generated before all bookkeeping operations, so it can be significantly different from net profit in the end, but it is comparable equally for all and is an indicator of company profitability). We are also 4th here if we look at EBIDA’s share of the revenue.

Of course, what will interest all our employees is the average salary in each agency and I am proud that we are in an extremely high 3rd place with an above-average income of HRK 10,274 (I believe that this includes all payments to employees on hand, and therefore various benefits). Given that profit tax is lesser than income tax, part of the salary of leading people is certainly paid in this way as well, so this information is just one look at salaries in agencies.

And finally, I arranged the agencies by the number of employees to get a sense of how many of us there are in this small public relations industry of ours. Given that there are colleagues who deal with other forms of communication, my free estimate is that there’s a maximum of 300 of us in the commercial sector if we take into account smaller agencies and colleagues who operate through their sole proprietorships that are not on our list. Very few positions for employment mean a very competitive market if you want to work in public relations, which we wrote about in the blog Do you want a job in public relations? Make sure you are the person we are looking for in Manjgura!

Since this was an extensive and tangible job, for possible corrections contact our Luka Kraljević at luka.kraljevic@manjgura.hr.

Tags: PR agencies, media list, list of PR agencies, agency for public relations, public relations

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