Aegis Media Sees Slowdown In US, UK, Spain; “Cautious” On Full-Year Outcome

Aegis Media warned in an interim trading statement today that “current uncertainty in financial markets and the more negative outlook for the global economy” was making it difficult for the communications group to forecast “accurate levels of client spend” for the fourth quarter. The company also reported slowing demand in the US, UK, and Spain in the third quarter.

In the first nine months, however, organic revenue growth at the group rose 8.8 percent, boosted by its business units in continental Europe, where it had double-digit organic growth in France, Germany, Italy, Central & Eastern Europe and the Nordics during September. Aegis Media Asia-Pacific also delivered a third quarter organic growth rate in line with its first half. The picture in the UK was a different matter. After a very strong first half performance, Aegis Media UK reported a “small organic revenue decline” in September, which partly reflected the phasing of client spending through the year. Organic revenue growth at Aegis Media Spain was slightly negative for the first nine months, reflecting “difficult market conditions.”

The group said the reduced visibility it had on the client spend had made it “more cautious” about the outcome for the full year. It noted that the fourth quarter was its most “significant trading period, with seasonally higher advertising volumes, project close-outs and determination of performance-related incentives.” One piece of good news, the falling sterling is expected to benefit its results. Release.

Comments have been disabled for this post