Aegis Reports 6.3% Organic Revenue Growth for Q3

Company Says Sale to Dentsu Will Close by End of February 2013

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Aegis Group reported 6.3% organic revenue growth in the third quarter of 2012, and confirmed that it is on target to complete its sale to Dentsu by the end of February 2013.

Although Aegis Group's growth rate outperformed that of its peers -- WPP Group, Havas and Publicis Groupe all reported third-quarter growth of around 2% -- Aegis' expansion slowed down markedly in the third quarter. For the first nine months of 2012, Aegis reported organic revenue growth of 7.9%.

Aegis did not provide any figures for revenue in its interim management statement, which is likely to be the last issued by the U.K.-based company before it becomes part of Dentsu next year.

The group, which includes the Carat, Vizeum, Posterscope, Isobar and iProspect networks, claims to have won $2.9 billion in new business so far this year.

Dentsu and Aegis are still waiting for final clearance from the Chinese authorities for the deal to go ahead, but confirmed that the filing required by anti-monopoly law has now been formally accepted. Aegis said in a statement, "Dentsu and Aegis are in constructive dialogue with Ministry of Commerce of the People's Republic of China with a view to obtaining its clearance."

The group's best performing region was the Americas, with organic revenue growth of 15.2%, although this is down from 18% in the second quarter and 20.3% in the first quarter.

In Asia Pacific, growth shrank to just 4% in the third quarter, down from 14.4% in the second quarter. First-quarter growth was 12.5% in the region. Aegis attributed the sharp decline in growth compared with the same quarter last year to bumper growth of 25% during the third quarter of 2011.

Growth also slowed in Europe, the Middle East and Africa, at 3.8% in the second quarter and 2.8% in the third quarter. However, third-quarter growth was better than the 1.7% rate achieved in the first quarter.

Aegis CEO Jerry Buhlmann said in a statement, "Aegis produced another strong performance in the third quarter of 2012, with continued market-outperformance and sector-leading organic growth."

The group continued to make small- to medium-sized acquisitions in the third quarter, including Catch Stone in China, Hablar in Japan, C2 in India, D2D and iSpy in the U.K., W Garden in France, Irokeesi in Finland, and IQ Mobile in Austria.

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