May 02, 2005
Digitas Q1 Net Income Up Sharply
Digitas said its first-quarter net income rose 40 percent, thanks to increased use of the Internet for brand marketing.
The Boston-based agency reported first-quarter net income of $10.4 million, or 11 cents per share, up from $7.4 million in the same period a year earlier. Fee revenue was $80.3 million, up 34 percent from the year-ago period.
Looking ahead, Digitas said it expects Q2 fee revenue between $85 million and $88 million, with earnings per share of 11 to 13 cents. For the year, the company forecasts $330 million to $340 million and earnings of 42 cents to 46 cents per share. The company attributed the revenue increases to marketing spending shifting from offline to online.
"We continue to acquire more of clients' brand-building spend," Digitas CEO David Kenny said in a statement. "Looking across 2005, we expect additional growth to come from momentum within our scaling and seed client segments, and as a result of increased opportunities for new clients under our two-agency model."
