Publicis Groupe profits rise 20% despite GM hit
By Daniel Farey-Jones, campaignlive.co.uk, Friday, 20 July 2012 09:41AM
Publicis Groupe has reported a 19.6% rise in first-half pre-tax profits to €384m (£300m), despite the loss of the General Motors (GM) media contract and a slowdown in organic growth.
The world’s third-biggest advertising group registered organic growth of 4.1% in the first quarter, but just 1.6% in the second quarter, which it blamed on the GM loss, European market weakness and a downturn in the healthcare cycle.
However, the weakness of the euro translated into a €101m (£79m) currency gain from its operations outside Europe, helping its top line grow 15.5% year on year to €1.6bn (£1.2bn)in the second quarter.
The company did not provide a profit figure for the second quarter.
It had warned of the slowdown in organic growth in February, after its Starcom network lost the US-based GM media account to Aegis's Carat network.
It claimed at the time that the account was worth "less than 0.5%" of its full-year revenues, which works out as less than €291m (£228m).
Maurice Levy, chairman and CEO of the group, claimed: "Our third quarter should see a return to much higher growth, at rates far closer to our usual performance."
He tempered this optimism with words of warning on the "volatile and uncertain world economic situation".
The worst of the trouble is focused on Europe, Publicis Groupe's second-biggest region, where organic growth dropped 1.7% in the second quarter.
Levy said: "We need to maintain the greatest possible vigilance regarding our costs and investments."
The group picked up net new business worth $1.8bn (£1.4bn) in the first half of the year, although it excluded the GM business from this calculation.
This article was first published on campaignlive.co.uk
- Affiliates Executive - No. 1 Agency! GoodEgg Digital Circa £25k + Exceptional Benefits, Central London
- Digital Display Manager - Leading Agency GoodEgg Digital £Neg + Great Benefits, South East England / London (Central), London (Greater)
- Senior Marketing Director - 9-12 month FTC Comedy Central £competitive, Camden, London (Greater)
- Brand Manager - Premium Jarlett de Grouchy £40000 - £45000 per annum + bonus, Surrey
- Marketing Manager - Premium Beer Jarlett de Grouchy £50000 - £55000 per annum + car + 30 % bonus potential!, Surrey
- The rear of the Apple Watch is more interesting than the face
- TV body Barb to track viewing via tablets
- Reebok Classics brand film champions 'Madchester' revival
- Channel 4 to drop 4oD for digital service All 4
- Guardian launches three-tier membership scheme
- David Hasselhoff to join Sorrell, Naughton and Shing at IAB Engage 2014