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%.
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
Latest jobs Jobs web feed
- Vice President Marketing Communications Direct Recruitment £75,000 - £79,000, London
- Account Director - Integrated - [Digital / Promotions] - Dynamic agency! to £49k Fill Recruitment Ltd £45k - £49k + superb bonus & benefits, Central London
- French Speaking Graphic designer | Corporate communications - Global Healthcare Brand Aquent Competitive day rate, Hertfordshire
- Client Services Director - Full-Service Digital Agency Silverdrum to £55,000 + benefits, London
- Account Manager - Post Campaign Management - Ad Ops Ultimate Asset £25000 - £35000 per annum + bonus, London
- Regional HR Manager Fashion & Retail Personnel Consultancy £40000 - £45000 per annum + package , Leeds