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.
