Aegis Group plc announces preliminary results for 2011

March 15, 2012 — Fusion DigiNet

Aegis Group plc has announced preliminary results for 2011.

Highlights:

  • Group organic revenue growth of 9.9% (2010: 5.3%), including 12.0% in fourth quarter
  • Group underlying operating margin of 17.4% (2010: 16.1%)
  • Strong performances from digital, faster-growing regions and North America
  • Record-equalling year in net new business, with $2.7 billion in billings (2010: $2.0 billion)
  • Aegis now a unique, scaled media and digital communications specialist, following sale of Synovate for enterprise value of £525m
  • Continued focus on acquisitions, with around £75m spent in initial consideration on 18 bolt-on acquisitions and investments in 2011
  • Appointment as global strategic media partner by General Motors Co. (“GM”) in January 2012, with anticipated annual global media spend of $3 billion
  • Proposed total dividend (excluding special dividend) increased to 3.20p, from 2.75p in 2010, including proposed final dividend of 2.01p
  • Expect to deliver continued sector-leading organic revenue growth and further improvement in underlying operating profit in 2012

 

Full details and notes on accounts are available here

Jerry Buhlmann, Chief Executive Officer of Aegis Group plc, said, ”Aegis Group delivered a very strong performance in 2011, reporting sector-leading organic growth, positive margin progression and a record-equaling year in net new business wins of $2.7 billion.

“The successful sale of Synovate represented the largest structural change in our history and gives the Group increased flexibility to move ahead with our programme of targeted acquisitions and investments. We completed 18 acquisitions and investments in 2011, and they have improved our core capabilities and positioning in a number of key geographies. This is in line with our strategy to increase revenue contribution from digital, faster-growing regions and North America.

“All these achievements, coupled with recent successes, including our appointment as GM’s global strategic media partner, leave us well placed as the world’s leading specialist media and digital communications group. We are better positioned than ever before to support our clients in re-inventing the way their brands are built.

“We are optimistic about the outlook for the advertising sector in 2012, supported by key sporting events and the US Presidential Elections, and we anticipate further success for the Group in the year ahead and beyond. We expect to continue delivering sector-leading organic revenue growth which we expect to convert into further margin progression and earnings enhancement for our shareholders over time.”

UK, London

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Aegis Group acquires Hungarian out-of-home agency PPI Central Europe

March 14, 2012 — Fusion DigiNet

Media and digital communications group Aegis Group plc has acquired the Hungarian Out-of-Home agency PPI Central Europe Ltd (“PPI”). PPI will be rebranded to become part of the Posterscope EMEA division of Posterscope Worldwide. The value of the gross assets of PPI at the end of 2011 was €1 million. The acquisition follows a long working relationship between Aegis Hungary and PPI.

Established in Budapest in 2001 PPI is a leader in the Hungarian outdoor specialist market serving a strong list of domestic and international clients. Its expertise lies in using the latest technology for enhanced capability in campaign planning, site selection, buying and campaign appraisal to deliver distinct competitive advantage in the central European Out-of-Home market.

Commenting on the acquisition Annie Rickard, Global CEO, Posterscope says: “We extend a very warm welcome to PPI and are excited to be bringing Posterscope to Hungary where Out-of-Home plays a central role in advertising. PPI’s innovative methods and extensive experience, knowledge and professionalism are driven by an accomplished management team. The new operation will add further strength to our comprehensive European network and bring new client opportunities into play by opening up central Europe.”

UK, London & Hungary, Budapest

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Publicis Groupe acquires King Harvests and Luminous

March 8, 2012 — Fusion DigiNet

Publicis Groupe has acquired two specialty marketing agencies in Asia: King Harvests and Luminous.  Both agencies will be integrated into MSLGROUP, the flagship strategic communications network of Publicis Groupe. Founded in 2002, with 360-degree marketing capabilities across Tier-one and Tier-two cities in Mainland China, King Harvests’ staff of more than 100 offer particularly strong expertise in both events and experiential marketing to local and international clients including Bosch, Haier, Sanyo and Siemens.

Established in 2005 and with more than 40 employees, Luminous is an award-winning experiential marketing consultancy with offices in Hong Kong, Singapore and Macau. Luminous produces live marketing events for clients including Cathay Pacific, PricewaterhouseCoopers and Prudential.

Agency heads Laura Lee and Antony Spanbrook – founders of King Harvests and Luminous, respectively – will report to Isabelle Chouvet, the founder of Emotion, MSLGROUP’s high-end and luxury events communication agency in Asia. King Harvests’ and Luminous’ experiential marketing expertise will enrich the scope of Emotion’s service offering.

“We have made our development in fast-growing markets in general, and China in particular, a top priority for the Groupe,” explained Jean-Yves Naouri, Publicis Groupe COO and Chairman, Publicis Groupe China. “The acquisitions of King Harvests and Luminous are important milestones, and further testimony to our commitment to China. We will continue strengthening our capabilities and footprint in China for the benefit of our clients and employees.”

Olivier Fleurot, MSLGROUP CEO, commented “Experiential marketing is today viewed by both agencies and clients as one of the biggest marketing opportunities for the next few years, alongside social/digital. We’re therefore very excited to have King Harvests and Luminous join us to expand our Asian offering in this space.”

“People today want the chance to experience a brand‘s promisesfor themselves,“ Isabelle Chouvet added. “‘Experiential‘ is a huge growth area globally, and by bringing King Harvests and Luminous into the fold we can offer more of what our clients are increasingly asking for in Asia today.” Chouvet will now oversee a network of 280 people in Asia, across Beijing, Hong Kong,Macau, Seoul, Shanghai, Singapore and Tokyo.

King Harvests and Luminous are the latest in a series of acquisitions in Greater China by Publicis Groupe, including Eastwei Relations, Interactive Communications Ltd (ICL), Dreams, Genedigi, Wangfan, Gomye and most recently UBS. It is in line with Publicis Groupe’s strategy to increase its presence in fast growing markets, with China at its core and where Publicis Groupe has set an objective to double its size.

France, Paris & Hong Kong & China, Shanghai

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Aegis Group to acquire Beijing eLink Advertising Co.

March 5, 2012 — Fusion DigiNet

Media and digital marketing group Aegis Group plc has entered into an agreement to acquire Beijing eLink Advertising Co., Ltd, a digital agency in China. The transaction is expected to close in the second quarter of 2012. eLink’s gross assets as of 31 December 2011 were £3.0 million.

Founded in 2007, eLink is a media-skilled full service digital agency specialising in marketing communications strategy, online media buying and online PR, as well as website design. eLink has grown rapidly, clients, include CMCC (China Mobile Communications Corporation), COFCO (China National Cereals, Oils and Foodstuffs Corporation) and ICBC (Industrial and Commercial Bank of China).

eLink will become part of the Isobar network in China.

China, Beijing

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UBM 2011 results

February 28, 2012 — Fusion DigiNet

UBM plc has reported 2011 results.

Highlights

  • Revenues up 9.3% to £972.3m – underlying revenue(a) growth of 7.9%
  • Adjusted operating profit up 17.5% at £201.9m
  • Margin up to 20.8% from 19.3%
  • Fully diluted adjusted EPS up to a record of 56.8p, 6.6p (13.1%) up on 2010
  • Full year dividend up to a record of 26.3p, (2010: 25.0p)
  • Cash generation from operating activities up 31.7% to £203.7m (100.7% cash conversion)
  • Events profits up 44.6% to £135.2m, 62.5% of total excluding corporate costs
  • Emerging Markets revenues up 24.4% to £207.1m
  • Emerging Markets operating profit up 33.4% to £65.6m representing 30.4% of total
  • £71.2m invested in eight acquisitions
  • Debt profile improved with maturities extended, net debt of 2.4x EBITDA

David Levin, UBM’s Chief Executive Officer, commented:  “2011 has been a strong year for UBM, with EPS up over 13% to a record 56.8p.  An outstanding performance from our Q4 biennial events capped off a year of consistent delivery in which all our businesses met or exceeded their targets for the year. On the back of these results, the Board has declared a final dividend of 20p, up 1p over 2010, resulting in a record dividend for the year.”

“These results are the fruit of our consistent strategy to focus on providing marketing, communications and data services, in winning formats, to thriving business communities.  Our Emerging Markets revenues grew by more than 24% during 2011 and contributed just under a third of our overall profits: in 2011 we generated more revenue in China than in Europe for the first time. Our Events business performed particularly well and 1.7 million people attended UBM events in 2011, up from 1.3 million in 2010 with profits growing by 45%. The solid performance of Data Services and PR Newswire in 2011 reflects the initial benefits of our continuing investment in these businesses. Our Marketing Services businesses also continue to develop well, with the combined effects of continuing strong digital growth and print disposals likely to result in online revenues outstripping print revenues in 2012.”

“2012 trading has started well. We anticipate continued underlying growth and a positive performance across the business whilst recognising the continuing uncertainties of the global economy.”

Business performance

Full Year 2011

Full Year 2010

Change %

Change at CC

%

Underlying Change %
Revenue

£972.3m

£889.2m

9.3

11.3

7.9
Adjusted operating profit

£201.9m

£171.8m

17.5

19.8

2.3
Adjusted operating profit margin

20.8%

19.3%

1.5%pts

 

 
EBITDA

£218.7m

£188.2m

16.2

 

Adjusted PBT

£177.4m

£156.4m

13.4

 

 
Adjusted EPS

Fully diluted adjusted EPS

57.8p

56.8p

51.0p

50.2p

13.3

13.1

 

 
Dividend per share

26.3p

25.0p

5.2

 

 
Cash generated from Operations

£203.7m

£154.7m

31.7

 

 

 

 
IFRS Statutory results (£m)

Full Year
2011

Full Year
2010

Change
%
Revenue

972.3

889.2

9.3
Operating profit

155.4

132.3

17.5
Profit after tax

86.1

99.4

(13.4)
EPS (p)

31.1

37.3

(16.6)
Net Debt

526.4

484.6

 

 

 

  

Operational Highlights

Segmental results

 

Full Year

Full Year

Change

Change at CC

Underlying Change
£m

2011

2010

%

%

%
Revenue

Events

396.9

310.0

28.0

30.8

14.6
PR Newswire

187.8

181.2

3.6

6.6

4.2
Data Services

187.0

184.7

1.2

2.3

3.0
Marketing Services – Online

88.5

69.2

27.9

31.7

16.4
Marketing Services – Print

112.1

144.1

(22.2)

(22.0)

(4.6)
Total Revenue

972.3

889.2

9.3

11.3

7.9
 

 

 

 
Adjusted Operating Profit

 

 

 
Events

135.2

93.5

44.6

47.9

 
PR Newswire

41.0

42.1

(2.6)

0.2

 
Data Services

30.3

34.1

(11.1)

(11.1)

 
Marketing Services – Online

3.6

1.3

176.9

200.0

 
Marketing Services – Print

6.1

10.0

(39.0)

(40.2)

 
Net corporate costs

(14.3)

(9.2)

(55.4)

(55.4)

 
Total Adjusted Operating Profit

201.9

171.8

17.5

19.8

 
 

 

 

 

 

 
Adjusted Operating Profit Margin          
Events

34.1%

30.2%

3.9%pts

  
PR Newswire

21.8%

23.2%

(1.4)%pts

  
Data Services

16.2%

18.5%

(2.3)%pts

  
Marketing Services – Online

4.1%

1.9%

2.2%pts

  
Marketing Services – Print

5.4%

6.9%

(1.5)%pts

  
Total Adjusted Operating Profit Margin      

20.8%

19.3%

1.5%pts

 

 

Read the full announcement

UK, London

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Publicis Groupe acquires U-Link Business Solutions

February 24, 2012 — Fusion DigiNet

Publicis Groupe has acquired U-Link Business Solutions Co. Ltd (UBS), one of the leading Chinese agencies specialised in healthcare communications.

UBS will become part of Publicis Healthcare Communications Group (PHCG) and will be renamed UBS Saatchi & Saatchi Health.

Founded in 1997, UBS employs approximately 170 people at its Shanghai headquarters and Beijing office. UBS offers PR, events management, medical association relationships and brand management to its clients, which include Abbott, GenSci Pharmaceuticals, Johnson & Johnson, Novartis, Novo Nordisk, Pfizer, Roche, Wyeth and Xian-Janssen.

“The Chinese healthcare market is one of the fastest growing in the world” declared Nick Colucci, CEO and President of PHCG: “Adding UBS to our portfolio brings the Saatchi & Saatchi Health flagship brand to China, and will make PHCG one of the largest healthcare communications groups in the region.”

UBS co-founder and CEO Frank Xu will remain at the helm, taking the title of Managing Director and reporting directly to Ash Kuchel, President of PHCG Asia Pacific region.

With UBS’s acquisition PHCG continues its expansion in Asia, following its recent acquisitions of Beijing Dreams Advertising and Beijing Dreams Zhiyang Communication (May 2011) and the India-based Watermelon agency (March 2011).

This is the latest in a series of China agency additions for Publicis Groupe that includes Wangfan and Gomye (November 2011), Genedigi (June 2011), Dreams (May 2011), Interactive Communications Ltd (February 2011) and Eastwei Relations (November 2010).

France, Paris & China, Shanghai

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Aegis acquires US digital agency, Roundarch, for initial consideration of $125m

February 22, 2012 — Fusion DigiNet

Media and digital communications group Aegis Group plc is to acquire the holding company of Roundarch Inc., the US digital agency, for an initial consideration of US $125 million.

Roundarch is a leading digital agency which specialises in designing and building enterprise-class digital solutions for clients such as Avis, HBO, Bloomberg Sports, Motorola and the US Air Force. The acquisition of Roundarch is in line with Aegis Group’s strategy to target acquisitions with a specific focus on digital businesses, North America and faster-growing regions.

With offices in Chicago, Denver, Boston and New York Roundarch employs 250 staff and its service offerings include strategy, design, development and outsourcing across all digital channels, including web, mobile and social media.

Following the acquisition, Roundarch will be combined with Isobar, Aegis Media’s existing digital creative network in the US, to form RoundarchIsobar. RoundarchIsobar will be a top tier digital agency with the depth and resources to compete for domestic and global assignments against the leading digital players in the US, consolidating Aegis’s competitive position in this important vertical.

Commenting on the acquisition of Roundarch, Jerry Buhlmann, Chief Executive of Aegis Group plc said, “We are delighted to announce the acquisition of Roundarch which is a highly successful US digital agency with a strong track record of sustained growth and performance. Combining Roundarch with Isobar places Aegis at the forefront of digital communications in the US, the world‘s largest advertising market.  Following its integration, we expect the proportion of Aegis Media’s total global revenues from digital to increase to 40%.

The acquisition of Roundarch is subject to a five-year earn-out structure from 2012 to 2016 with further annual consideration payments being made, subject to the level of future profit growth attained. The total consideration for the acquisition by 2017 is expected to be around US $250 million (£159 million). If Roundarch significantly outperforms existing projections, the total consideration could be higher with a cap on the maximum amount payable of US $360 million (£228 million). All consideration payments will be satisfied in cash.

The audited profit before tax of Roundarch for the year ended 31 December 2010 was US $ 11.5 million and the value of the gross assets at that time was US $14 million.

The vendors are Geoff Cubitt, Jeff Maling and other shareholder employees. Geoff Cubitt and Jeff Maling will co-lead the new US entity of RoundarchIsobar, with Darryl Gehly, President of Isobar North America.

Nigel Morris, CEO of Aegis Media Americas said: “As demonstrated by our recent win of GM’s global media business, Aegis Media has real momentum in the US market and this acquisition is a very significant part of our overall plan and will make us even more of a force for convergence and innovation. A powerful Isobar has been key to that plan and Roundarch is an agency we have admired for a long time, with great people, doing great digital work. Bringing them together with Isobar to create RoundarchIsobar will produce a new powerhouse in the US digital agency sector and add US scale to the global geographic depth of the Isobar network.”

Jeff Maling, President & Chief Experience Officer of Roundarch said, “Combining with Isobar NA will give us a formidable US presence and make us a part of one of the most respected global digital agencies. The deal will also expand our strong design and technology capabilities to include world-class marketing.”

UK, London & USa, Boston, MA

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Publicis Groupe full year and fourth quarter results

February 10, 2012 — Fusion DigiNet

Publicis Groupe has reported results for the full year and fourth quarter ended December 31, 2011.

Publicis Groupe is the most active acquirer by volume in the Media and Marketing industry between 2009 and 2011 with 39 transactions, 24 of which were announced or closed in 2011. A list of Publicis Groupe acquisitions articles published on Fusion DigiNet is at the end of this article.

“In a context of sovereign debt crisis and economic slowdown, Publicis has not only outperformed the market, more remarkably it has improved on its own outstanding performance of 2010. The Group’s margin, which has improved very satisfactorily, is back on the 16% mark while we continued investment in technology and talent,” said Maurice Lévy, Chairman & CEO of Publicis Groupe. “We have continued to pursue our strategy of making targeted acquisitions in digital communications and high-growth countries.”

KEY FIGURES

ANALYSIS OF THE KEY FIGURES

  • Published growth             +7.3%
  • Organic growth                +5.7%
  • New Business (net)         $7.9 bn
  • Operating margin            +8.8%
  • Net income                         +14.1%
  • EPS                                       +12.3%
  • Free Cash Flow                 +9%

ACQUISITION ACTIVITY

Since the start of 2012, Publicis Groupe has made two acquisitions:

  • Mediagong in France: a digital agency specialised in digital strategy consulting, the social media,advergaming and mobile communications.
  • The Creative Factory in Russia: highly reputed in its specialized areas, namely, marketing, digital services, digital production and video. This Moscow-based agency will enable Saatchi&Saatchi to expand its foothold in Russia.

In addition to these two acquisitions, Publicis Groupe has launched a friendly takeover bid on Pixelpark, the independent German leader in digital communications.

Pixelpark’s core businesses range from the creation of digital brands, consulting, content management, the social media, mobile marketing, eBusiness solutions and data analysis and management. Publicis Groupe’s public offering has the support of Pixelpark AG’s Management Board and Supervisory Board. The bid will be tabled by the Groupe’s German subsidiary MMS Germany Holdings GmbH (MMS) registered on the Dusseldorf trade register under the reference HRB 50291. MMS will offer Pixelpark (ISIN DE000A1KRMK3) shareholders a consideration of 1.70 euro per share in exchange for their bearer shares of no nominal value. This offer is at a premium of some 28% over the estimated average share price of Pixelpark (1.33 euro) as traded on the German stock exchange during the three months up to January 20, 2012. The offer is scheduled to begin in mid-February. To date, the shares tendered by Pixelpark shareholders to MMS represent approximately 56.51% of the authorize share capital and voting rights. Among others conditions precedent, the bid will be subject to MMS acquiring at least 75% of the current share capital. The acquisition by MMS of the majority of Pixelpark shares must also be approved by Germany’s Federal Cartel Office.

On February 1, the Group announced the acquisition of Flip Media, one of the large digital agency networks in the Middle East. Flip Media is present throughout the digital chain, offering a comprehensive range of services from strategy, digital design and production, content to technological platforms. With an original, proprietary creation technology that has received many awards, Flip Media words with a number of emblematic brands.

Click here for the full Publicis Groupe announcement and fouth quarter information.

France, Paris

A list of all Publicis Groupe aquisition activity published on Fusion DigiNet is below.

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Smart Business Network acquires OnMark Solutions

February 7, 2012 — Fusion DigiNet

Smart Business Network has acquired OnMark Solutions, a full-service e-marketing services company in Cleveland.

“We’re excited to add OnMark Solutions’ extensive e-marketing knowledge to our team,” said Fred Koury, President and CEO of Smart Business Network. “Their proven track record for producing creative and effective e-messaging strategies and programs for B2B and B2C clients will be a great complement to our talent base.”

OnMark Solutions’ client list includes a broad range of organisations, including Peeps Candy Co., American Red Cross, Achievement Centers for Children, BioPlastics and The Smithers Group. As part of the acquisition, OnMark Solutions founder Kristy Amy will join Smart Business Network as vice president of business development.

The OnMark Solutions acquisition was the third in the past year for Smart Business Network, which previously acquired the custom content firm Wise Group in January 2011 and digital design firm Flique Creative in August 2011.

USA, Cleveland, OH

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The Jim Pattison Group acquires magazine distributor Comag Marketing Group

February 3, 2012 — Fusion DigiNet

 The Jim Pattison Group, a privately owned, Vancouver, BC-based conglomerate which owns The News Group, has acquired the national magazine distributor Comag Marketing Group, LLC (CMG) from Hearst Magazines and Condé Nast. Terms were not disclosed. Jay Felts will continue as president of CMG and the firm’s headquarters will remain in Princeton, New Jersey.

CMG U.K. is not part of the transaction and will continue to be owned by National Magazine Company Ltd. and Condé Nast U.K.

Michael Korenberg, deputy chairman of The Jim Pattison Group and a member of its Board of Directors, said, “This transaction will strengthen the newsstand channel and, at the same time, enable Hearst and Condé Nast, as publishers, to focus on their core competencies — editorial development, retail marketing and consumer promotion. We believe that with the strength of its management team and systems, CMG can consolidate and improve publisher services as well as add stability for all stakeholders in the single-copy marketplace.”

Canada, Vancouver, British Columbia & USA, Princeton, New Jersey

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