Digitas Says GM Relationship Strong

NEW YORK Digitas CEO David Kenny said the agency’s relationship with key client General Motors remains strong, despite the departure of a key executive at the auto company.

Kenny said the agency did not expect any change in its relationship with GM after Jack Bowen, the carmaker’s director of consumer relationship management, left the company.

“The relationship at GM is very broad and very deep and starts at levels more senior that that person,” he said.

The Boston-based agency said fee revenue for the third quarter was $85.5 million, up 43 percent from last year’s third quarter. Net income, however, fell due to a $3.2 million bad debt expense from Delta Air Lines’ bankruptcy filing. Earnings for the quarter were $8 million, down slightly from $8.2 million in the same year-ago period.

“The strength of our strategy is achieving these results despite Delta’s bankruptcy,” Kenny said.

He said Digitas is taking a “business as usual approach” to work with Delta.

Kenny said Digitas is increasingly diversifying its client base, seeing clients like KitchenAid and Pfizer move marketing spending to accountable media and shifting seed projects with Eastern Mountain Sports to larger engagements. It also won a Hewlett-Packard assignment in Europe.

“The market continues to move in our direction across a broader range of clients,” he said.