Aegis reports resilient client budgets that retain growth
Aegis today announced a trading update for the first quarter of 2012, from 1 January 2012 to 31 March 2012, with total group revenue for the first quarter up 16.3% on 2011 in constant currency.
The company says its clients’ marketing and advertising expenditure so far in 2012 “has been resilient and their budgets for the remainder of the year retain growth.”
Aegis delivered organic revenue growth of 8.1% in the first quarter:
| Organic revenue growth (%) | Q1 2011 | Q2 2011 | Q3 2011 | Q4 2011 | Q1 2012 |
|---|---|---|---|---|---|
| Aegis Media | 10.1 | 5.8 | 11.5 | 11.9 | 8% |
| Aztec | 9.9 | 12.1 | 7.8 | 15.4 | 10% |
| Group | 10.1 | 6.1 | 11.2 | 12.0 | 8.1% |
The Americas produced organic revenue growth of +20.3%, which the group says was boosted by “an outstanding new business record in North America over the last two years, as well as continued strong results from our market-leading digital business in Brazil.”
The Asia Pacific region delivered organic revenue growth of +12.5%, with China particularly strong.
In EMEA, organic revenue growth was considerably lower at 1.7% was against prior year comparatives of near double digit growth. Aegis reports good performances from its businesses in Russia and northern Europe, but that southern Europe “continued to face challenging market conditions.”
Aegis Media achieved total net new business wins of $2.9 billion (2011: $1.6 billion) during the first quarter of the year, $2.5 billion of which results from a single contract – with General Motors Co. (“GM”). But this particular win has only just come into effect in the second quarter of 2012, so did not impact first quarter numbers.
The group says it “will continue to target acquisitions which provide scale, innovation and infill, with a focus on faster growing regions, North America and digital.”
Jerry Buhlmann, Chief Executive Officer of Aegis Group plc, said:
“In the first quarter of 2012, which was our first full quarter as a focused media and digital communications specialist, Aegis delivered excellent organic revenue growth, particularly in the face of a sector-leading top line performance in the prior year period. All of our network brands performed well across our key regions, highlighting the continued positive momentum in our business.
“Our unique operating model and focus as a scaled media and digital communications specialist, fully aligned to the requirements of our clients in a rapidly-changing media environment, ensures that Aegis remains very well positioned for continuing success.”