AQuantive Q4 Revenue Up 50%

NEW YORK Thanks to increased spending on interactive advertising, aQuantive said its revenue in the fourth quarter rose 53 percent from a year earlier and profits nearly doubled.

The Seattle-based digital marketing company’s revenue for the quarter was $133.4 million, up from $87.5 million. Net income was $20.4 million, up from $11.6 million.

The company’s agency, technology and media businesses all enjoyed solid growth. Its digital marketing unit, which includes Avenue A/Razorfish, had revenue of $80.6 million, up 50 percent from the same period a year ago. Operating income was $20 million, double the year-ago period.

Avenue A/Razorfish has tabbed international expansion as a major priority. In a little over a year, it has expanded through acquisition to the United Kingdom, Germany, Australia and China. Last month, it struck a partnership with Dentsu to open an office in Japan.

Brian McAndrews, aQuantive’s CEO, said more acquisitions abroad are to come, with particular emphasis on Europe and Asia.

“A lot of our U.S. clients are global businesses,” he said. “They want to have support outside the U.S. like they do here.”

The agency has seen early benefits of its expansion abroad, with U.S. client Starwood adding aQuantive’s U.K. agency, DNA. Avenue A/Razorfish and DNA also won Samsonite’s business, which McAndrews said would probably expand into other countries.

In aQuantive’s other business units, marketing technology revenue, mostly derived from its Atlas ad server, was $35.2 million, up 18 percent from fourth-quarter 2005. Performance media, which includes the DrivePM ad network, had revenue of $17.7 million, up from $7.9 million a year earlier.