Aegis profits climb on back of digital and research growth

LONDON - Aegis has boosted revenues by over 16% in 2005 as pre-tax profits were up 2.3% to £94m, boosted by strong performances at its digital and research businesses.

Aegis, owner of media-buying agencies Carat and Vizeum and market research network Synovate, saw 2005 pre-tax profits rise by £2.1m to £94m compared with a year earlier.

Revenue rose 16.5% to £870.4m. Group organic revenue was up 7.2%, with Synovate showing organic growth of 10.8% and Aegis Media up 5.1%.

Isobar, Aegis' digital media network, increased revenues by 110%, now accounting for 15% of Aegis media revenues for the year. Its annual billings are $1.59bn (£916m).

Over the year, Isobar has acquired digital creative shop Glue for £14m, Swedish firm Farfar, Molecular in Massachusetts, Hypermedia in Warsaw, and Digithais in Bangkok among others.

Aegis' research arm Synovate saw 2005 revenues increase by £58.1m to £330.5m from the previous year as the business pushed into new markets, up from 45 to 50 in total, including Australia, New Zealand and Scandinavia.

In EMEA, Synovate revenues were up 18.9% buoyed by strong markets in Central and Eastern Europe, which managed to offset difficult trading in Western Europe.

Revenues at Aegis' media buying networks Carat and Vizeum rose 13.8% to £539.9m from £474.6m in 2004 on the back of strong growth in Asia and the Americas.

In Europe, weakness in countries such as France and Germany was offset by growth in the UK, Spain, Central Europe and Scandinavia.

Robert Lerwill, chief executive of Aegis, said: "We have continued to develop our business by investing in people, services and tools. This performance reflects the exceptional insight and original thinking in both our media and research businesses, coupled with the leading international position we've created in digital media."

The media group expects 2006 to realise the benefits of its investment and integrated approach.

He added: "I am confident we will deliver further good results in 2006."

Last year, Aegis was the target of a joint approach from larger rival WPP Group and private equity group Hellman & Friedman last year, as well as its biggest shareholder Vincent Bollore, who owns 25% of the business.

Aegis is likely again to be the subject of a takeover attempt later this year, with May seen as the window when bidding could start. 

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