Marketing firm Digitas reported a 39% increase in earnings in 4Q 2005 and a 32% increase in quarterly revenue over the same period in 2004.
Total 2005 revenue at Digitas was $565.5 million, 48% higher than 2004 revenue, while profit rose to $40.9 million, from $30.9 million the previous year. Fee revenue for the year was up 35% to $340 million; for the fourth quarter, it was $81.7 million, an increase of 23% over Q4 2004.
For 2006, Digitas forecasts free revenue of $380 million to $400 million. Digitas chairman and CEO David Kenny said in a conference call after the release that the company did not expect to see an adverse impact from the business woes of one of the company’s major clients, General Motors, which Kenny said accounted for 22% of the company’s revenue in 2005.
In early January, Digitas announced it will pay $30.4 million in cash and stock for Medical Broadcasting Co., an interactive pharmaceutical marketing agency. The acquisition agreement calls for Medical Broadcasting to operate under its own brand and remain separate from Digitas and its other subsidiary, Modern Media.
