Mitchells boosts a healthy Aegis balance sheet

Mitchells has been credited for its strong contribution to the balance sheet of its new owner, Aegis, which reported a 5.8% rise in revenue growth – to £1.45bn (AUS$2.38bn) – in its preliminary 2010 financial results.

Asia Pacific was the British media buying company’s fastest growing region, with revenues up 34% to £117.7m (AUS$193.5m). Mitchell Communication Group, acquired last year for £208m (AUS$341.9m), contributed £12.6m (AUS$20.7m) to the region’s total.

New clients Kraft-Cadbury and Disney underpinned a strong performance for Australia’s only billion-dollar billing media agency, the report stated.

“The acquisition of Mitchell, Australia’s leading marketing communications agency, transforms our market position to the number one player in Australia and to a competitive top three position across the Asia Pacific region,” read the report.

Aegis’ joint venture with Charm Communications Inc, a Chinese media buying and advertising agencies, was also credited for its contribution.

Asia Pacific’s group revenue contribution has  increased to 33% in 2010, from 20% in 2006.

Europe, the Middle East and Africa – which accounts for 65% of the company’s  revenues – reported flat figures of £579m (AUS$951.2m).

The Americas operation saw revenues rise by 14.5% to £189m (AUS$310.5m).

Aegis reported a 25% drop in pre-tax profits, £68m (AUS$112m), blaming an exceptional charge from debts due from former Spanish client Nueva Rumasa.


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