NEW YORK Fee revenue remained relatively steady and net profit improved for Digitas in Q2 versus the last quarter and year-ago period.
The Boston-based independent, which provides digital and direct marketing services for clients like American Express and General Motors, recorded net income for the quarter of $2.9 million, or 5 cents per share. That is a 60 percent boost over net income of $1.8 million, or 3 cents per share, in the prior-year quarter, and 12 percent over $2.6 million, or 4 cents per share, in the first quarter.
Fee revenue totaled $51.6 million, up 3 percent versus $50.2 million a year ago and down 1 percent from $52.3 million in Q1. Total revenue, including reimbursable pass-through expenses, was $72.6 million for the second quarter. That compares to $74.3 million in Q2 2002 and $79.2 million in the first quarter of this year.
"The shift from mass marketing to relationship marketing is quite real," said Digitas chairman and CEO David Kenny in a statement. "The shift definitely works in our favor."
The shop, which employs about 1,100 people in Boston, Chicago, London, New York and San Francisco, said it expects fee revenue of $51-53 million for the third quarter and earnings per share of 3-5 cents. For full-year 2003, the company anticipates fee revenue of $206-212 million and earnings per share of 15-20 cents.
Digitas shares closed today on the Nasdaq at $6.49, up 50 cents or 8.35 percent. The stock's (DTAS) 52-week high is $6.90 and 52-week low is $2.