Aegis Predicts 'Modest Growth' as Synovate Decline Slows

Aegis' research arm Synovate has reported a 1.9% organic decline in first quarter revenue, compared with 10.1% and 5.5% declines respectively in the third and fourth quarters of 2009. Separately, Synovate has launched a 'Digital Centre of Excellence', based in London.

Media buying and market research group Aegis says its research businesses in Asia Pacific, Africa and both North and Latin America started the year well, but had continued to experience a more 'varied story' across Western Europe and Eastern Europe. Going into the second quarter however, Synovate's sales order book was 7% higher than at the same time last year.

For the group as a whole, Aegis is budgeting for 'modest growth' after reporting a 0.8% year-on-year rise in organic revenue in the first quarter - the first growth since 2008.

Taking account of the effects of currency movements, acquisitions and disposals, group organic revenue was up by 1.1% compared to the prior year. Aegis says this was driven by a solid performance from Aegis Media, which delivered organic growth of +3.0% during the first quarter.

Additionally, since the beginning of the year, the group's balance sheet has been strengthened with the launch of a convertible bond, which raised £190.6m.

'There were tentative signs of clients starting to increase their marketing and advertising budgets for the second half of 2010,' states CEO Jerry Buhlmann. 'Despite on-going uncertainties in the global economic environment, Aegis is well positioned for the coming year with evidence of top-line momentum, a strengthened balance sheet and strong management continuity.' Buhlmann added that against this background, the group is forecasting modest growth in 2010.


The new 'Digital Centre of Excellence' will specialise in understanding and measuring the effectiveness of brands' advertising and communications through digital media.

Ged Parton, CEO for Synovate's Capabilities and Practices, explains: 'While many companies are making a good deal of effort recording what is happening in the digital environment, Synovate believes that there is still breakthrough work to be done in understanding how the environment works at the individual person level to build, support, reinforce and change brand relationships.'

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