Synovate Recovery Gathers Pace

Synovate parent Aegis Group has reported organic revenue growth of 9.7% in the third quarter, and 5.2% for the nine month period, but has warned of slower growth in the fourth quarter. Synovate outperformed the media division with revenue up 11.5% for the quarter and 5.7% over 9 months.

Reported Group revenues grew 8.8% in Q3 and 4.4% over 9 months. China, Russia and Latin America led the growth but North America 'continued to gain momentum'.

Synovate itself 'continued to perform well' in Asia Pacific, Africa and Eastern Europe, while the UK put in a 'particularly good performance' and the Nordic countries also did well. Elsewhere in Western Europe, a 'challenging micro-economic environment' held the company back.

CEO Jerry Buhlmann said full year guidance for group organic growth remained unchanged, with today's good figures offset by anticipated slowing in the fourth quarter. Buhlmann said the firm was 'cautiously optimistic' about 2011, with 'increasingly positive signals of confidence from our clients regarding their short term advertising expenditure plans', but admitted that 'short term visibility in a number of key regions remains relatively low, which creates challenges in precisely predicting how the advertising and market research sectors will fare in 2011.'

The Group also announced that the $320m acquisition of Mitchell Communication Group in Australia will be completed next week.

Web sites: www.synovate.com and www.aegisplc.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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