The current ‘testing’ market conditions have seen revenue growth at global advertising and communications group Aegis come in at 8%, ‘significantly less than that achieved in the comparable period last year,’ according to a trading statement released this morning.
Aegis said that first half net new business wins for its Carat media business are expected to be in excess of $1 billion, in line with the run rate for the corresponding period last year. Carat’s strong 2000 new business performance is beginning to make a positive impact in 2001, even though current market conditions are testing, the company said.
The group says it has seen reductions in marketing budgets from a number of clients, particularly in the US where there has been a widely reported slowdown in the economy, most noticeably in the high tech sector.
European adspend, which saw some tightening in the Spring of 2001, declined further in May, the statement says. Aegis Research, which has expanded its global presence to 38 countries, has been less affected by reductions in marketers’ budgets.
Aegis has implemented a programme of cost reduction initiatives in order to offset the downturn and remains confident that its business model will support its growth ambitions.
