Aegis group remains cautious for rest of 2011 despite reporting revenue growth of 20.3% for year so far

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By Stephen Lepitak, -

November 1, 2011 | 3 min read

Aegis Group remains cautious for the rest of the year, despite having reported a growth in revenue of 20.3% for the first three quarters of the year.

The marketing services group said that total revenue, with the exclusion of Synovate which was offloaded, had grown by 26.1% in the third quarter of this year, while organic revenue excluding acquisitions and disposals, had grown by 11.2% in the third quarter, a total of 8.9% during the first three quarters of 2011.

Aegis Media delivered a total of £2.4bn in new business during the first nine months of the year, $400m of which was brought in during the third quarter.

‘Positive momentum’ in North America and faster growing regions were highlighted as the reason for revenue growth within the group, delivering double-digit organic growth in North America, through a number of new business wins over the last year-and-a-half in the region.

Regions such as China, Russia and Brazil were also highlighted by the group as performing well this year, as was Australia over recent months.

Business in Western Europe was still said to be delivering ‘strong performances’ however the French market was described as having had ‘a challenging quarter.

Despite this, the group has said that short-term visibility remains ‘limited’ and ‘uncertain’, as it expected revenue growth to ‘slow’ in the final quarter of the year.

Jerry Buhlmann, chief executive officer of Aegis Group, said: “Aegis continues to outperform the market, as we emerge as the world’s leading focused media and digital communications Group, following the sale of Synovate. Our strong organic revenue growth performance in the third quarter of 2011 was driven by excellent operational results from our businesses in faster-growing regions and North America. However, parts of Western Europe continue to be challenging.

“We continue to focus on improving our efficiency and on targeting acquisitions in media and digital that extend our products and services and position the business in key geographies, ensuring Aegis remains well placed for the future. In addition, we have completed the disposal of Synovate – this transformational deal makes Aegis a stronger and better placed business than ever before, able to capitalise on the opportunities ahead.

“Whilst visibility remains relatively low and macro uncertainties remain, the momentum in the business, built up over the last 18 months, combined with the focus we now have, ensures the Board remains positive about Aegis’s future prospects.”

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