Group Press Releases
AGM Statement
25 May 2007
The following is an extract from the Chairman’s statement to be given at today’s annual general meeting of Aegis Group plc.
Trading for the year has started well across Aegis. For the first quarter, total revenue increased by 10.8% at constant currencies, and by 4.6% at reported rates. Group organic revenue growth (excluding currency movements and the impact of acquisitions) has increased since 2006, to 8.5% in the first quarter, and Aegis continues to achieve the fastest organic revenue growth of any major marketing services group.
Aegis Media
Total Q1 revenue growth at Aegis Media was 10.3% at constant currencies, and 5.3% at reported rates. Organic revenue growth was 8.4%. Momentum has been particularly strong in both Asia-Pacific and EMEA, helped by a good competitive performance, a buoyant market in China and the effect of a record $2.7bn of net new business won in 2006.
Our new business performance has continued well, with wins including the international brief for 20th Century Fox as well as Citroën in Sweden, Opodo in Germany, H&M in Eastern Europe, Liverpool Victoria in the UK, IAG in Australia, Danone in Thailand, Bacardi in the Philippines and Sunglass Hut in Hong Kong. In April, Carat also successfully re-pitched the global Philips account.
We have extended our presence in emerging markets, with recent acquisitions including digital agencies Agencia Click in Brazil and Trigger in South Africa. In March, Isobar was recognised as the world’s largest digital network by RECMA.
Digital services continue to be the fastest-growing part of our business. Our leadership in digital is allowing us to deliver ever greater integration to clients as marketing disciplines converge. Notable current examples include the successful launch of the new Renault Twingo in France, where Carat extended its digital direct campaign into integrated broadcast, print and out-of-home creative executions.
Synovate
Synovate’s total Q1 revenue growth was 11.6% at constant currencies and 3.5% at reported rates. Organic revenue growth was 8.7%, with a particularly strong start to the year in the Americas and Asia-Pacific.
The acquisition of Interview:NSS in the Netherlands, owner of European Media & Marketing Survey (EMS), has made Synovate the most international provider of high income media research in Europe, and complements the position of our PAX survey, the only international media tracking study for affluent consumers in Asia-Pacific and Middle East.
We are continuing to see good returns on Synovate’s investment in global client relationships and new product development. Brand Value Creator, Synovate’s new sales prediction model, launched in the fourth quarter of 2006, has already been commissioned for 150 studies, across a total of 55 countries.
Last month Synovate entered into a ground-breaking global partnership with online panel provider GMI, for preferential access to its six million strong panel. Along with Synovate’s own ViewsNet panel, this gives us online panel capabilities in over 50 countries.
Outlook
2007 has started well, with strong organic revenue growth in both Aegis Media and Synovate, and we continue to see a healthy outlook for both the advertising and market research markets. With over a third of group revenue derived in the US dollar and related currencies, and a further third in Euros, our reported results will reflect the current strength of sterling. The trend in recent years for a greater second half weighting of operating profit is likely to continue.
We remain confident that Aegis is on track for a further year of industry out-performance and good underlying progress, underpinned by recent client wins, our world-class position in digital services and our growing presence in developing economies.
Aegis will release a pre-close trading statement in June and will announce interim results for the six months to 30 June 2007 on 6 September 2007.
For further information contact:
Charlotte Elston
Aegis Group plc
+44 (0) 20 7070 7708
Tim Spratt / Charlie Palmer
Financial Dynamics
+44 (0) 20 7831 3113
Matthias Leridon
Tilder
+33 (0) 1 44 14 99 99
