Aegis revenue drops 11.6% in Q1 after account losses

LONDON - Aegis, the communications group behind Carat and Vizeum, has posted an 11.6% drop in organic revenue for the first quarter of 2009, after losing the £650m (billings) Renault account to OMD in EMEA and several other clients in the US last year.

John Napier: chairman and interim chief executive of Aegis
John Napier: chairman and interim chief executive of Aegis

The group, which also includes digital network Isobar and market research specialist Synovate, noted that revenue in the first three months of the year was up 6.5% year on year and remained confident it was "well-positioned" to produce a "resilient performance" for the rest of the year.

The double-digit revenue decline comes despite the French company seeing "a significant exchange rate benefit".

Half of the organic revenue movement at Aegis Media was attributed to Renault and the US losses, but from the second quarter, group revenue will start to benefit from net new business wins of $1.05bn; including Kellogg's, Vodafone and Credit Agricole.

At Synovate, organic gross revenue was down 12%, which the group attributed to a high comparative quarter in 2008.

John Napier, chairman and interim chief executive of Aegis, said the group remained focused on delivering "the cost reduction programme announced in March".

He added: "Our target remains to broadly maintain the full-year underlying operating profit margin through continuing careful management of our businesses."

 

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Watch the first YouTube clip, nine years on

Watch the first YouTube clip, nine years on

This week marks the ninth anniversary of the first clip uploaded on YouTube, a 19-second video of YouTube co-founder Jawed Karim at the San Diego Zoo.

Share
Yahoo hosts exclusive X-Men: Days of Future Past films

Yahoo hosts exclusive X-Men: Days of Future Past films

Yahoo has partnered with film distributor Twentieth Century Fox to create a global content hub on its Yahoo Movies platform for new release 'X-Men: Days of Future Past'.

Share
My Media Week: Stuart Taylor

My Media Week: Stuart Taylor

This week, Stuart Taylor, chief executive, Kinetic UK, is inspired by the new tech coming to market and how wearables and smart cities will impact on OOH.

Share

Get news by email