Aegis Group (LSE:AGS)
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U.K.-based advertising and marketing firm Aegis Group PLC (AGS.LN) Thursday said it expects third-quarter organic revenue to be similar to the 7.3% posted in the first half, signalling confidence despite the worsening macroeconomic picture.

MAIN FACTS:

- Aegis confirmed it still expects 2011 organic revenue--a key metric in the advertising industry that strips out acquisitions, disposals and currency effects--will grow at least as fast as in 2010. The target is for Aegis, excluding the Synovate arm, which it is in the process of selling. The group also aims for further improvement in adjusted operating profit this year.

- Third-quarter organic revenue growth is expected to be more in line with first-half organic revenue growth than second-quarter growth.

- Aegis said client expenditure levels in the first half of 2011 were ahead of the same period in 2010.

"Medium term visibility continues to be relatively limited and macro-economic uncertainties remain. However, we remain positive about Aegis's future prospects as a more focused group, particularly given the momentum achieved by our businesses over the last 18 months," Aegis CEO Jerry Buhlmann said in a statement.

- Total group revenue in the first half rose 14% to GBP756.8 million.

- Organic revenue rose 7.3% in the first half, driven by growth in emerging markets and North America. In the second quarter, organic revenue growth totaled 5.9%.

- Net profit for the first half rose to GBP44.3 million from GBP18.5 million while adjusted operating profit rose 27% to GBP77.4 million.

- Aegis said the sale of its market research arm Synovate is running on track. The group reiterated its goal to return GBP200 million of the proceeds of the Synovate sale to shareholders by means of a special dividend, with associated 10 for 11 share consolidation. The balance of proceeds to be used to develop Aegis, through targeted acquisitions.

- Aegis last month said it will sell its market research arm Synovate to French group Ipsos SA (IPS.FR) for an enterprise value of GBP525 million in a move that will drastically change the future of the U.K. advertising and marketing group, focusing the company predominantly on media buying through its Aegis Media business. The sale is expected to close at the end of September.

- Carat, Europe's biggest media buying agency which is owned by Aegis, cut its forecast for 2011 global ad spending worldwide to 5% from a previous 5.7%.

- Larger rival WPP PLC (WPP.LN) Wednesday said heightened concerns about the macroeconomic environment haven't led to advertising spending cuts from clients yet, but it will nonetheless approach 2012 with caution amid the current stock market turmoil.

-Separately, Aegis said it has signed an agreement to acquire 100% of the share capital of the holding company of Master Ad LLC, a full-service out-of-home agency based in Moscow, Russia.

-The consideration for 100% of the share capital of the holding company of Master Ad will include an initial upfront payment of EUR15 million. There is also an earn-out based on achieving certain annual profit targets from 2011 to 2014. If Master Ad significantly outperforms the forecast market growth, total consideration could reach the maximum amount payable of EUR100 million. All consideration payments will be satisfied in cash.

- By Ruth Bender, Dow Jones Newswires; +331-4017-1754; ruth.bender@dowjones.com

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