Aegis latest to post revenue drop
Aegis Group, owner of Carat and Vizeum, has reported first quarter revenue dipped 11.6% but says it still expects a “resilient” full-year performance in a difficult market.
So-called organic revenue, which excludes the effects of currency movements and acquisitions, dipped across the group’s two major divisions. Marketing services business Aegis Media dropped 13.1% while organic net revenues at market research business Synovate dropped 12%.
The group says “approximately half” of lost revenues at Aegis Media come from US client losses and the loss of the EMEA Renault business, which had been partly held by Carat, at the end of last year.
John Napier, chairman and interim chief executive officer, says the group’s financial position remains “strong” and that it will remain focussed on cutting costs and sales.
Napier (pictured) took over last November after the abrupt departure of Robert Lerwill amid rumours of a boardroom fall-out.
Aegis’ financial statement follows recent quarterly results from rival marketing services groups. Last week, Havas reported revenues declined 6% while both Interpublic Group and Publicis Groupe both recently reported revenue drops.