Aegis's growth rate decelerates sharply in Asia Pacific

Media and digital communications group Aegis saw underlying revenue growth slow down in the third quarter ahead of its assimilation into Japan's Dentsu group.

Group organic revenue, at constant currency rates and excluding acquisitions and disposals, was up 6.3% in the third quarter, having been up 8.6% at the half-year stage. The third quarter slow-down brought the growth rate in the first nine months of the year down to 7.9%.

Total group revenue for the third quarter of 2012 was up 14.5% in constant currency terms, and +10.0% at reported rates. Total group revenue for the first nine months of 2012 was up 16.3% on a constant currency basis, and +13.3% at reported rates.

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The Aegis Media unit delivered organic growth of 6.3% during the third quarter, down from 9.0% in the second quarter. Growth in the Americas slowed to 15.2% from 18.0% in the second quarter, while in Europe, Middle East and Africa (EMEA) it slowed to 2.8% from 3.8% in the preceding quarter.

The slowdown was a lot more marked in Asia Pacific, where the organic revenue growth rate tumbled to 4.0% from 14.4% in the second quarter.

Aegis Media bagged $2.9bn (net) of new business wins in the first nine months of the year, up from $2.4bn in the corresponding period of 2011.

The Aztec unit's organic revenue growth rate in the third quarter slowed to 6.7% from 9.1% in the second quarter.

"Aegis produced another strong performance in the third quarter of 2012, with continued market-outperformance and sector-leading organic growth," claimed Jerry Buhlmann, Chief Executive Officer of Aegis Group.

As for the group's impending takeover by Dentsu, the filing required by China's Anti-Monopoly Law has now been formally accepted and Dentsu and Aegis are in constructive dialogue with the Ministry of Commerce of the People's Republic of China with a view to obtaining clearance for the merger.

Dentsu and Aegis remain confident that the scheme of arrangement under which the merger will take place will become effective on or prior to the deadline date of February 28th, 2013.

JH