Aegis Posts Improving Revenues In ‘Patchy’ Conditions
Aegis Group, the global media and advertising network, has reported revenues up by 7.8% in the first half of 2003, in what the group describes as ‘patchy’ market conditions. Pre-tax profits remained more or less flat at £30.9 million, up from £30.0 million in H1 2002.
Carat performed well in all three of its operating regions, with Carat Europe increasing profits in the face of static markets. Carat in Asia Pacific saw growth at every level despite the impact of SARS in the second quarter and in the Americas, the US businesses performed well in a gradually improving environment, Aegis said.
Media and advertising trading In the media markets, the US began to improve from mid last year onwards, whilst Europe stabilised as compared to a weak second half the year before.
Moving into 2003, the US television upfronts commitments strengthened the outlook, whilst Europe has remained disappointing. Aegis expects that Europe will end this year with little or no growth. In Asia-Pacific, SARS affected the second quarter, but outside of Japan, the region has returned to solid growth.
Overall, the global advertising market showed a slight recovery in the first six months of 2003. “While signs from the US TV market are encouraging, other forms of US media are showing little improvement. The European market has been more disappointing with gains in some markets offset by weakness in others,” it said.
While H2 2003 may see slightly better market conditions, it is likely that the full-year will show only a slight recovery. However, Aegis’ market predictions point to an increased rate of adspend growth in 2004.
Chief executive Doug Flynn described these current market conditions as ‘patchy’, although he expects 2003 to be a satisfactory year for the group, with revenues and profits already on the rise; 2004 is predicted to show further improvement.
Shares in Aegis Group were down slightly on yesterday’s close of 106p, at 105.75p by 10.00am today.
