Aussie agencies buck downturn to report profits

SYDNEY: Two of Australia's largest agency groups, Clemenger Communications and the Singleton Group, have defied a general downturn in local advertising spend to flag substantial end of financial year profits. On the back of business diversification, Clemenger actually managed a record after-tax profit of A$13.8 million (US$7 million) for the 12 months to June this year across its Australian and New Zealand operations. This was a five per cent increase on the previous year. Singleton Group chief executive Russell Tate claimed his agency was on track for a profit growth of more than 10 per cent for the 12 months to December. Further, given Singleton's preference for consulting models over the traditional media commission plus service fee, Tate said there was no reason the agency's future should not remain bright. "I said at the start of this year to the financial markets that they should regard us as delivering 10-15 per cent average (annual) growth over the next five years," Tate said. "I believe we can do that and I believe we're going to do it in this current year." On a wider scale, industry analysts have flagged that Australia's advertising market will follow the US into a global advertising recession.

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