Aegis revenue down 10.8%, with gloom to continue
Aegis Group, which owns agency networks Carat, Vizeum and Isobar, has reported a 10.8 per cent drop in organic revenue in the nine months to the end of September, with little sign it will experience an upturn this year.
The marketing communications group, which has clients including Kellogg’s and Johnson & Johnson, also saw its market research business Synovate fall 11.5 per cent in revenue.
It added that its cost cutting programme had accelerated in the third quarter, giving it savings of £36.7m ($66.5m) during the nine month period.
Aegis chief executive, John Napier, said: “Our strategy to perform resiliently in a downturn has continued to deliver and we are pleased to confirm further progress in a difficult and challenging market environment.”
Earlier last month, Carat warned that Australian ad spend would finish further behind than previously predicted for this year, and wouldn’t see growth in 2010 either.
The media agency predicts that by the end of 2009, Australian ad spend will have fallen by 6.5%.
Meanwhile in other financial results, WPP last month posted a 8.7% fall in third-quarter organic revenue, while Publicis Groupe’s organic revenue dropped 7.4% and Havas was down 9.3% in the quarter.
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Can you explain the difference between organic and inorganic revenue? (I assume it factors out acquisitions)
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Hi Simon,
Yes that’s right. Organic growth excludes any recent acquisitions.
Long time no speak! Hope all’s well.
Camille – Mumbrella
Organic? Rushy, I thought it meant grown with lots of manure!
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