Aegis Revenues Soar, Digital Now 15% Of Media Operations

Even as it was the focus of takeover attempts and shareholder realignment, U.K.-based Aegis group continued its own acquisition strategy during 2005, emerging as what is likely the most digitally diversified of the major agency holding companies. Isobar, Aegis' digital media network, and the focus of most of its 2005 acquisitions, now represents 15 percent of all media-related revenues, the company said in a year-end earnings report released this morning.

Media revenues, including those from Isobar, Carat, Vizeum and Posterscope, rose 13.8 percent to $937.4 million in 2005 from $824 million in 2004. Organic media revenues, excluding acquisitions, rose 7.2 percent. Europe/Middle East/Africa continued to be Aegis' biggest media region, accounting for 70.5 percent of all media revenues, but the Americas were its fastest growing sector, rising to 22.0 percent in 2005 from 18.4 percent in 2004.

Net new business wins totaled $1.595 million.

Thanks also to strong growth from its research operations, Aegis' total revenues soared 16.5 percent to $1.511 billion in 2005, while profits jumped 17.1 percent. Organic revenue growth was 7.2 percent.

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Much of that growth came from new business wins such as Revlon, Motorola and The U.K. government's Central Office of Information, as well as increased spending form existing clients.

"We expect worldwide market demand to be healthy in 2006, underpinned by continuing growth in emerging markets and helped by key sporting events in the year," Aegis CEO Robert Lerwill said in the earnings statement. Within media, digital and out-of-home outpaced other media. Growth in digital, out-of-home outpaced other media. Isobar's revenues rose 110 percent and now account for 15 percent of total media revenues, due largely to an aggressive digital media acquisitions strategy during 2005. Isobar is now active in 32 of the world's top 40 markets ranked by online connectivity.

Posterscope, Aegis' out-of-home media network, also benefited from a surge in new media activity. Posterscope's interactive unit, Hyperspace, had high-profile campaigns including the launch of Coldplay's album "X&Y," which utilized mobile technology to download music and video from digital screens via Bluetooth.

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