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Synovate Revenues Slip
UK-based media group Aegis has announced organic decline in revenues for the first quarter for both its main divisions. With currency and acquisition effects revenue rose 4.8% for Aegis Media and 9.6% for MR division Synovate; without them it fell 13.1% and 9.1% respectively.
Sales for the media division were hit by client losses in the US and the loss of the EMEA Renault account, while Synovate suffered from tough comparisons with an excellent first quarter of 2008, when sales were up 16.5%. Orders at Synovate are said to be broadly in line with last year, at constant currency.
Aegis says that new business wins in the Media division, including Vodafone, Kellogg's and Credit Agricole, are worth a net $1.05bn (£689m) in the first quarter and the effects will begin to be seen in the second quarter.
The revenue figures compare with an 8.4% fall reported Friday by French rival Havas SA, which is led by 29.9% Aegis shareholder Vincent Bollore. Larger competitors WPP Group Plc and Publicis Groupe SA saw first quarter organic revenue falls of 5.8% and 4.4% respectively.
Chairman and Interim CEO John Napier commented: 'Our target remains to broadly maintain the full year underlying operating profit margins through continuing careful management of our businesses', adding that the cost cutting program implemented in March is 'on track'. 780 job losses were announced and the group has targeted £20m of annual savings by 2010.
Aegis reported an adjusted operating margin in 2008 of 13.8% and has confirmed that it expect resilient full-year results in the difficult economic climate.
Web sites: www.aegisplc.com , www.synovate.com .
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