NewsFebruary 8, 2021
Geelmuyden Kiese shows solid profit growth in 2020
Geelmuyden Kiese Gruppen (GKG) had revenues of 182 million Norwegian kroner (MNOK) in 2020. The agency income was MNOK 140, and the earnings before dividends and taxes were MNOK 12.2. This is an improvement of MNOK 4 compared to the previous year. GK’s daughter companies in Denmark, Norway and Sweden all made a profit in 2020.
When the pandemic struck the Scandinavian countries in mid-March 2020, the GK management team decided to take control of the only thing they could: costs. The management team conducted analysis of various market segments, and estimated a fall in revenue of approximately 20% for the year.
“In a situation of great uncertainty we reduced our costs in all three countries according to the estimate and the different governmental arrangements for furloughs and cost reductions,” explains managing partner in GKG Karne Lykkebo.
The biggest changes occurred in Norway when GK in March 2020 furloughed 27 employees. Most of them are now back at work, either at GK or with a new employer, and only two remain on furlough.
The accounting figures for 2020 show that the estimates made by the management team were overly negative. Thanks to hard work, the decline in turnover was limited to 18% measured in gross income, and 15% measured in agency income. The GK Groups operating profit increased with 48% before dividends and taxes compared to 2019.
Key to the change processes which have taken place in 2020 is the further development of Geelmuyden Kiese as a society agency. A society agency works strategically with clients in markets where the government have strong regulatory interests, or where the clients have strong interest in society, such as energy, food, mobility, life sciences and technology, as these are areas with big changes and strong growth.
“2020 has been a challenging year with great uncertainty. Thanks to flexibility from both employees and management, we have made it through the year, and I owe everyone a huge thanks. My experience is that we have been recharging our batteries in anticipation of improved circumstances. Now we are all full of energy and ready to continue to develop GK in the years to come,” says Chairman Hans Geelmuyden.
“My mandate is to build the society agency Geelmuyden Kiese in Scandinavia. It has never been more important for organizations and firms to actively contribute to developing our communities. Our clients know this well, and we can see that our ability to combine strategy, politics and creativity is sought after in all markets” says Karne Lykkebo, managing partner in GK Copenhagen and the GK Group.
In the fall of 2020, GK was named the most awarded agency for the fourth year in a row at the Content Marketing Awards (CMA) in London. CMA is considered the world championship in content marketing. At the end of 2020, GK is one Scandinavian company with a Scandinavian specialization, owned by one Scandinavian partnership, and led by one Scandinavian management team. Therefore, GK reports 2020 figures at the group level.
About the Geelmuyden Kiese Group
Geelmuyden Kiese is a full-service communications agency with offices in Copenhagen, Oslo and Stockholm. The agency was founded in 1989. Globally, GK is an exclusive Scandinavian partner of Ketchum, the world fourth largest PR network, and cooperates with FTI on public affairs, financial communication and crisis management. At the end of 2020, GK had 105 employees. The customer list is open and available at the company’s website. Hans Geelmuyden, through his investment company Koko A/S, owns approximately 95% of the shares in GKG. As of 01.02.2021, the remaining shares were owned by Mikkel Salgaard Bendtsen, Margrethe Geelmuyden, Christian Grønning, Marit Høvik Hartmann, Geir Ove Harnes, Karne Lykkebo, Hanne Schmidt and Simon Wallin.