Aegis has “outperformed the market” on the back of reporting organic revenue growth of 11.2% in the third quarter and up 8.9% in the first nine months of 2011.
Total revenue for the Retained Group, excluding Synovate, was up 26.1% in Q3 with Aegis Media contributing to the vast majority of the revenue. The media arm of Aegis had organic growth of 11.5% in Q3 driven by positive momentum in North America and faster-growing regions such as China, Russia and Brazil. Aegis Media had total net billings of $2.4bn during the first nine months of the year, compared to $1.6bn in 2010, $400m of billings this year came in the third quarter.
The Group’s trading statement recognised that business in Western Europe was challenging yet the UK, Germany, Scandinavia and the Netherlands all delivered strong numbers in the Q3.
The sale of its market research division Synovate to the French research company Ipsos was completed on 12 October 2011 for a total consideration of 847m. Aegis will return $320m of the sale proceeds to shareholders. Remaining funds will be used for acquisitions.
“Our strong organic revenue growth performance in the third quarter of 2011 was driven by excellent operational results from our businesses in faster-growing regions and North America. However, parts of Western Europe continue to be challenging,” said Aegis Group chief executive Jerry Buhlmann. “We continue to focus on improving our efficiency and on targeting acquisitions in media and digital that extend our products and services and position the business in key geographies, ensuring Aegis remains well placed for the future.”