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Digitas (DTAS)
A beneficiary of the boom in online ad spending, Boston-based Digitas is a pure play in online advertising. Sales rose 35% in 2005, and profits jumped 32% to $40.9 million. Digitas' stock has underperformed that of fellow Hot Growth resident aQuantive (AQNT), in part because of concerns over Digitas' reliance on General Motors (GM), which provided 22% of 2005 revenue. In an effort to diversify, Digitas in January acquired Medical Broadcasting, which specializes in creating ads for pharmaceutical companies. The addition should allow Digitas to ride a hot trend: consumers receiving health-related services online. If you bet on Digitas during the Web bust, happy retirement: Shares have risen fifteenfold since hitting a low of 88 cents.
Company Info |
|
| 2005 Rank | NR |
| Market Value* ($ Millions) | 1,262.9 |
| Sales* ($ Millions) | 603.1 |
| Sales Growth (3-yr. avg. annual) |
20.9 % |
| Profits* ($ Millions) | 44.6 |
| Profit Growth (3-yr. avg. annual) | 55.7 % |
| Return on Inv. Capital (3-yr.) | 9.6 % |
| Share Price 12-Mo. Hi/Lo | 15/10 |
| Share Price As of 4/28/06 | 14 |
| Return on Equity | 10.5 % |
| P/E Ratio | 31 |
| No. of Employees | 1,740 |
| Industry | Internet Software & Services |
| CURRENT MARKET INFO | DTAS > |
| COMPANY WEB SITE > | |
| Location | Boston |
| Phone | 617 369-8000 |
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat
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Company Snapshot
Digitas Inc. operates as a global marketing services organization. It operates as the parent company of Modem Media, an interactive marketing strategy and services firm; Digitas LLC, a digital and direct marketing agency; and Medical Broadcasting, LLC, which offers digital professional services to pharmaceutical and health-care marketers. Digitas offers marketing services and strategy to design, build, and run the marketing engines that enable customer acquisition, cross-sell, loyalty, affinity, and care operations across digital and traditional channels. The company offers infrastructure and technology enablement services, including customer relationship management infrastructure work, such as customer strategy, research and planning, analytics and market data, and technology enablement; and digital and direct agency services, including digital marketing, Internet solutions, live channels, promotions, and direct marketing/direct response. It serves various industries, including financial services, media and entertainment, travel-related services, health care and pharmaceuticals, business products and services, technology, telecommunications, and consumer products. Digitas was founded by Michael E. Bronner in 1980 and has its headquarters in Boston.
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