The coronavirus epidemic had a negative effect on the PR industry in Hungary as well: the sector's turnover fell from HUF 64 billion in the previous year to HUF 48 billion in 2020, but the net profit after tax did not decrease.
That is according to the PR Trendriport Hungary 2021 published on the occasion of the 30th anniversary of the Hungarian Public Relations Association. It also said that the number of people employed in the sector fell by more than 27%, profit after tax was almost the same as in 2019 at HUF 10.9 billion, while profit as a percentage of sales almost doubled, due to fewer intermediary services – i.e. the use of purely consultancy services by agencies – and a reduction in staff-related expenses.
The analysis showed that the primary concern was to protect the interests of the owners, who often took a share of the operational work.
Last year, almost 1,500 companies and around 2,300 individual businesses were active in the sector.
The number of employees in the sector fell by 27.15%; more than 480 jobs disappeared as a result of the new coronavirus epidemic in 2020, and personnel costs fell by 43% to HUF 6 billion. This clearly shows that PR agencies have reduced the number of people they employ, but at the same time, the number of sole traders has jumped to its highest level ever, so firms have either tried to ease their burden by hiring sole traders, i.e. external consultants, or more have started businesses out of necessity as jobs have disappeared, the report points out.
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