Aegis Keeps 2010 Targets, Positive On 2011

U.K.-based advertising and marketing firm Aegis Group PLC (AGS.LN) Friday kept its full-year targets but said it expects organic revenue growth to slow in the fourth quarter from the third quarter, when both advertising and market research activities accelerated growth.

Aegis, the owner of Europe's biggest media buying agency Carat, also sounded a positive tone for next year.

"We are seeing increasingly positive signals of confidence from our clients regarding their short term advertising expenditure plans, supporting our cautiously optimistic view of the outlook for next year," Chief Executive Jerry Buhlmann said in a statement.

The company also reiterated its guidance for operating margin to improve modestly in 2010 and organic growth to improve in the second half. Fourth quarter organic revenue is seen slowing mainly due to a tougher comparison base, the group said.

Organic revenue growth, a closely-watched measure in the advertising industry that strips out acquisitions, disposals and currency effects, was 9.7% in the three months ended Sept. 30, driven by growth both in advertising and its market research business Synovate.

WPP PLC (WPP.LN), the world's largest marketing company by revenue, last month reported organic revenue growth of 7.5%, its strongest quarter in 10 years, while rival Publicis Groupe SA (PUB.FR) posted growth of 9.2% in the quarter and raised its full-year outlook.

Aegis also said the acquisition of Australia's Mitchell Communication Group Ltd has now been cleared by all relevant regulatory and competition authorities and will be finalized Nov. 17.

The group's advertising unit Aegis Media won net new business of $650 million in the quarter, up from $500 million in the same period last year. The new business pipeline remains healthy going into the fourth quarter of 2010, Aegis added.

Aegis shares closed Thursday at 130 pence.

-By Ruth Bender, Dow Jones Newswires; +33 1 40 17 17 54; ruth.bender@dowjones.com

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