Aegis outperforms ad sector with strong first-half results

Aegis outperforms ad sector with strong first-half results

LONDON - Aegis Media has outperformed the advertising services market after a record year of new business wins and strong growth across its digital agency network Isobar.

The UK media group, which includes media agencies Carat and Vizeum, posted organic revenue growth of 9.8% in the first half of 2007, ahead of estimated global advertising growth of 5.3%. Underlying operating profits were up 4.7% to £51.7m.
This was on the back of a strong performance in EMEA, its largest region, which saw a 10.4% increase in revenue to £216.1m, above estimated market growth of 4% in 2007, Aegis said.
Net new business in EMEA totalled $1.1bn, including Bird’s Eye, Liverpool Victoria and the Carbon Trust in the UK. This was the lion’s share of $1.5bn total new business wins for Aegis Media in the first half, up 14.8% year on year.
Aegis Media attributed its strong performance to the evolution of the group into “a global, fully integrated marketing communications business” able to deliver consumer understanding, digital data, creative thinking and technological expertise simultaneously.
It expects to maintain profit margins going forward, in spite of the significant level of investment in 2007.
Isobar in particular has consolidated its position as a leading digital agency with several high-profile acquisitions, including mobile services company Marvellous Mobile in the UK and ad-serving business Bluestreak.
Aegis Group as a whole, which encompasses Aegis Media and market research arm Synovate, posted an 8.7% increase in underlying pre-tax profits to $41.3m, up from $38m in the first half of 2006.
Organic revenue growth for the group was 9.6%, and for Synovate 9.3%.

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