Aussie agencies buck downturn to report profits

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