Additional Information


Aegis profits dive after higher costs

LONDON - Aegis, the global media and market research group, has reported an 86% drop in first half pre-tax profits to £6.6m despite growing revenues by 4.8%.

Share this article

The company, which owns Aegis Media and Synovate, suffered a 10.4% drop in billings to £4.8bn, which it attributed to media deflation as well as client budget reductions, and a 10.8% drop in organic revenues.

It expects market conditions to remain difficult but said Aegis Media has made "significant new business wins", which include Nokia's £300m global media planning and buying account, placing it in a stronger position for the second half.

While revenues increased 4.8% to £636.7m, pre-tax profits fell due to rises in operating expenses, restructuring charges and finance costs.

Aegis spent £15.7m on restructuring charges following chairman and interim chief executive John Napier's drive to make its operations more efficient and flexible.

Napier said: "We developed a clear strategy to perform resiliently in a downturn, which has delivered in more difficult market conditions than forecast."

The company's share price was steady in early trading this morning at 98.75p.

More on Brand Republic

Bob Willott on the Bottom Line: Aegis? resilient performance? A loss so far

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Latest jobs Jobs web feed


The Wall blogs

Back to top ^