Digitas Improves Net Income | Adweek
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Digitas Improves Net Income

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NEW YORK Digitas completed its first full year of profitability in 2003 as a public company.

The 23-year-old i-shop, which went public in March 2000, reported yesterday a 2003 net income of $16.9 million, or 24 cents per share. That is an improvement over a 2002 net loss of $40.3 million, or 65 cents per share.

Full-year fee revenue rose 3 percent to $209.5 million from $203.9 million for the prior period, while total revenue for 2003, including reimbursable pass-through expenses, declined 3 percent to $311.8 million from $321 million.

For the fourth quarter, Digitas recorded a net income of $8.1 million, or 11 cents per share, versus a net income of $1.7 million, or 3 cents per share, in the year-ago period.

Digitas posted a 4 percent revenue increase to $53.4 million in Q4 from $51.4 million during the same time the year earlier. Year-over-year total revenue for the quarter, including reimbursable pass-through expenses, dropped 11 percent to $82.2 million from $92.3 million.

The Boston-based independent, which provides digital and direct services for clients like American Express and AT&T Wireless, projected fee revenue of $58-60 million for the first quarter and earnings per share of 8-10 cents. For 2004, Digitas forecasted fee revenue of $225-245 million and earnings per share of 32-42 cents.

Digitas (DTAS) shares closed on the Nasdaq today at $11.29, up 80 cents or 8 percent. The stock's 52-week high is $13.24 and 52-week low is $2.99.