Aegis enjoys 16.3.% revenue increase in Q1 2011
Aegis has posted a 16.3% YoY increase in total group revenues for Q1 2011 on a reported basis. Organic group revenue, excluding the effects of currency movements, acquisitions and disposals, was up +9.1% in the first quarter, compared to the prior year.
Aegis Media delivered organic revenue growth of +10.1% during the first quarter, driven by continued strong performances from the company’s businesses in faster-growing regions, North America and a number of Western European markets.
In faster-growing regions, the strongest performances came from businesses in Asia Pacific, particularly China, and from Brazil and Russia. The first quarter results include a full contribution from the Mitchell acquisition, which delivered a good performance during the period, in line with Aegis’ expectations.
In Western Europe, there were particularly good results from the UK, Germany and the Nordic region. Aegis’ Spanish business also performed well, in spite of the continued challenging economic environment in Southern Europe.
Aegis Media secured total net new business wins of $1.6 billion during the first quarter of the year (2010: $0.8 billion), driven in particular by new business momentum in North America.
Meanwhile, Synovate delivered gross organic revenue growth of +7.3%, with orders on hand at the end of the first quarter up +4.9% from the same time last year.
Synovate’s businesses in faster-growing regions, in particular China, India, South Africa and Brazil continued to perform extremely well.
However, trading in Western Europe remains mixed. Aegis said there were good performances in certain markets, including Germany, France and the Netherlands but difficult market conditions continue to impact businesses in Southern Europe, whilst the UK market remains challenging.
Aegis expects group organic revenue growth for 2011 to be at least in line with the level achieved last year.
Jerry Buhlmann, chief executive officer of Aegis Group plc, said: “Aegis performed strongly in the first quarter of 2011, particularly in North America and faster-growing regions, building on the positive momentum achieved during 2010. Aegis Media delivered another excellent new business performance and Synovate started the second quarter with a healthy orders on hand position.
“Aegis remains well placed to build on this performance and achieve further revenue and profit growth in 2011, in spite of macro-economic uncertainties. We remain on track to deliver organic growth for 2011 at least in line with the level achieved last year. This top line performance, underscored by our continued focus on costs, will ensure we further improve group underlying operating profit this year, compared to 2010.”