• by Joe Mandese , March 15, 2007

Citing exceptionally strong growth from its media operations - particularly digital - as well as research, Aegis Group this morning reported another "excellent year" of results for 2006, touting a "best in industry" organic revenue growth rate of 7.7%. The company also pointed out that 20% of its revenues came from digital media, up from 15% in 2005, and making by far the most digitally-centric of the major agency holding companies.

"Aegis grew faster than the marketing services industry," the company boasted, "as we have for each of the past 10 years. Global adspend rose at an estimated 5.9% in 2006 and the market research industry by 5.0%. Our growth rate was the highest achieved by any international marketing services group in 2006."

Citing strong new business, as well as bountiful new product launches from existing clients, the company said total revenues for Aegis Media grew 10.3%, and organic revenues roe 6.6%. Underlying operating profit for the media operations rose 13.7%.

Much of that stellar growth came not from traditional media operations like Carat and Vizeum, but from digital media unit Isobar, which outpaced the rest of the group due to some languishing markets in traditional media.

"Our digital presence more than compensated for some weaker trends in other areas of media, such as network television and print," the company said, adding, "These have proven challenging in some developed markets as viewers and advertisers migrate to alternative media, and competition heightens with new channel and free-sheet launches. This shift in budget allocation benefits not only digital but out-of-home, sponsorship, experiential marketing and events."

North American media operations outpaced the worldwide average, with Aegis Media's Americas revenues rising 12.1% due to a strong net new business performance during 2006, despite some losses.

Aegis also issued a bullish outlook for 2007 for both its advertising and research operations, which are projected to grow at 5.8% and 4.5%, respectively.