Synovate posts decrease in Q1 organic revenue

UK-- Synovate saw a 9.1% decrease in gross organic revenue during the first quarter of 2009 compared to the same period last year, its parent company Aegis said in an interim management statement today.

On a reported basis, which includes the effects of acquisitions and currency movements, the research agency's gross revenue was up 9.6% and net revenue was up 10.9%.

Aegis said that Synovate's revenue movement was “largely adverse” due to the high first quarter figures in 2008, but the firm's actual performance was on budget.

Sales orders in the first quarter of 2009, on a constant currency basis, were “broadly in line” with the same period last year, Aegis said.

In total, the group reported an 11.6% drop in organic revenue. Approximately half of this, Aegis said, was due to Aegis Media losing major clients in the US and EMEA, such as Renault. However, during the first quarter, Aegis Media won $1.05bn worth of new business from clients including Kellogg's, Vodafone and Credit Agricole.

John Napier, the group's chairman and interim CEO, said: “Given visibility remains limited across the industry, in addition to sales we are focused on delivering the cost reduction programme announced in March, which is on track…Our financial position remains strong. We continue to manage our cash and working capital prudently.”

Author: James Verrinder

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