Aegis predicts modest growth in 2010
Aegis Group, owner of the Carat and Vizeum media agency networks, says it is on course to deliver “modest growth” for the full year in its statement on business for the first quarter of 2010.
The company reported a drop in underlying pe-tax profits of 21.8% in 2009.
The latest results are the first under CEO Jerry Buhlmann, who took up his position at the beginning of the month. It says total group revenues rose 0.8% for the quarter, year on year, and group organic revenue rose 1.1%.
Rival media group Havas, owner of Arena BLM and MPG, posted a 1.5% growth for its first quarter.
Aegis says that its growth was driven by a solid performance from Aegis Media, which embraces the media agency networks.
The division saw 3% organic revenue growth year on year. However, research arm Synovate saw organic revenue drop by 1.9% for the quarter, year on year. This compares with a 5.5% drop in the final quarter.
Aegis says best performances came from the developing markets, including China, Russia and Latin America. Performance in Europe and North America was “mixed” with slight growth in France, Italy and the UK.
Buhlmann says: “Aegis produced a solid performance in the first quarter. There were tentative signs of clients starting to increase their marketing and advertising budgets for this second half of 2010.
“Despite on-going uncertainties in the global economic environment, Aegis is well positioned for the coming year with evidence of top-line momentum, a strengthened balance sheet and strong management continuity.”
WPP Group has just raised its forecast for the full year to 2% growth.
