Aegis Reports Strong Quarter, Driven By New Business

Aegis Group, the parent of media agencies such as Carat, Isobar, and Posterscope, this morning reported that revenues grew 8.8% during the third quarter of 2010, compared with the same quarter in 2009. Revenues for the first three quarters of the year grew 4.4%.

"Organic" revenues, excluding the effects of currency exchanges, and mergers and acquisitions, grew 9.7% during the quarter, and 5.2% during the first three quarters of the year.

Aegis Media's growth lagged the company's overall performance, rising 8.5% during the quarter, and 5.0% through the first three quarters of the year.

Aegis said results for its media operates were stronger in fast-growing regions such as China, Russia and Latin America, but that mature markets such as North America nonetheless continue to gain momentum, and should benefit from a flurry of new business wins, particularly at Carat.

Overall, Aegis Media scored $1.6 billion in net new business wins during the first nine months of the year, including $650 million in the third quarter of 2010. Big wins included Diageo and Red Bull in North America, Warner Music in Europe, Procter & Gamble in West Africa, BMW in South Africa, Anheuser Busch InBev in the UK and Societe Generale in Russia.

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"The new business pipeline remains healthy going into the fourth quarter of 2010, and there have already been a number of major client wins in the period including Kellogg's digital creative in Europe and Relativity Media in North America," Aegis said in its earnings release.

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