Aegis Reports 9.7% Revenue Growth Through September

CEO Bulhmann Warns of "Moderation" in Fourth Quarter

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LONDON ( -- Aegis Group reported revenue growth of 9.7% in the third quarter, and 5.2% for the nine months through the end of September, but CEO Jerry Buhlmann warned of a "moderation in organic revenue growth rate in the fourth quarter."

Jerry Buhlmann
Jerry Buhlmann Credit: Art Beaulieu
The group's media-buying operations, which include the Carat and Vizeum networks, reported 8.5% growth in revenue in the third quarter and 5% for the year to date.

The biggest growth was in China, Russia and Latin America, but North America "continued to gain momentum,"the company said in a statement. In Western Europe, the U.K. and the Nordic countries have been the best performers.

Aegis Group claimed new business wins of $1.6 billion for the year to date, compared to $2.4 billion for the same period in 2009, with $650 million coming in during the third quarter against $500 million for the third quarter last year. Wins included Diageo and Red Bull in North America, Warner Music in Europe and Procter & Gamble in West Africa.

At Aegis Group's research arm, Synovate, revenue was up 11.5% for the third quarter and 5.7% for the year to date. Again, the developing regions performed best, and North America continued to be "strong."

Looking ahead to 2011, Mr. Buhlmann said, "Short term visibility in a number of key regions remains relatively low, which creates challenges in precisely predicting how the advertising and market research sectors will fare in 2011. However, we are seeing increasingly positive signals of confidence from our clients regarding their short term advertising expenditure plans, supporting our cautiously optimistic view of the outlook for next year."

Aegis Group also announced that the $320 million acquisition of Mitchell Communication Group in Australia will be completed Nov. 17. Harold Mitchell, founder and chairman of Mitchell Communications, will become chairman of the Aegis Media Asia-Pacific business.

Last month saw other ad holding companies report similar gains. WPP reported organic revenue growth of 7.5% in the third quarter, Publicis Groupe reported 9.2% revenue growth, and Havas 5.3%.

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