Publicis Groupe Services: September 30, 2009 Revenue

Tuesday, October 27, 2009 General News
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"As announced, the advertising market reached its lowest point duringlast summer. After a fall superior to 13% at the end of June, forecasts nowshow a decrease by an average 10% for the full year.

During the second quarter, revenue for Publicis Groupe showed a regulardecrease, exceeding a negative 10% in June. As previously predicted, July,August and September show improvement. Therefore, 3rd quarter posts anorganic growth negative by 7.4% when it was negative by 8.6% for the secondquarter.

New Business has been particularly active during the first nine monthsand Publicis Groupe continues to be ranked first with net wins totallingclose to 5 billion US dollars.

Organic growth performances exceeding our peers' and market share gains:this is the result of our teams' excellent performances backed by an offerwell adapted to the needs of our clients, particularly in digital. As fordigital, we have further strengthened our operations through the acquisitionof Razorfish which is being integrated according to our plans and whichshould be EPS accretive starting as soon as in 2011.

In 2010, our share in digital should exceed 25% of our revenue. Theadvertising market is starting its recovery which will be slow andprogressive. First positive growth numbers should be established during thesecond half of 2010. Publicis Groupe should continue to outperform themarket."

Maurice Levy, Chairman and Chief Executive Officer of Publicis Groupe

3rd quarter of 2009

- 3rd quarter 2009 business activity

As expected, the third quarter improved compared to the second quarter2009, the lowest point of the market having probably been hit during thesummer. For Publicis Groupe the bottom was reached in June. One can assumethat the regular deterioration of the market has stopped and that a slow andprogressive recovery is under way.

- Revenue in the 3rd quarter of 2009

Consolidated revenue in the third quarter of 2009 was 1,047 million euro,down 5.3% compared to the third quarter of 2008, while organic growthdecreased by 7.4%.

Europe: If worsening market conditions affected every country in Europe,good performance of Publicis Worldwide in France and the Group's media buyingagencies in Western Europe and Poland deserve to be highlighted. Allactivities in the United Kingdom and Southern Europe show sharply decliningnumbers.

North America: The positive trend in healthcare and digitalcommunications partially offset the decline in all other areas. A decrease oforganic growth of 5.3% for North America represents a strong performance.

Asia-Pacific: The markedly negative growth rate in the region reflects acontrasted situation with on the one hand, some mature economies severelyhit, and on the other hand, China remaining promising.

Latin America: Organic growth in the region has been mostly generated byArgentina, Venezuela and Colombia. The good performance achieved by PWW andSaatchi & Saatchi in Brazil are also noteworthy.

Africa and Middle East: As elsewhere, growth declined, but to a lesserextent and revenue, thanks to Leo Burnett, the Group's media business and thegrowth of VivaKi remained stable.

Publicis Groupe at September 30, 2009

- Revenue at September 30, 2009

Consolidated revenue in the first nine months of 2009 was 3,256 millioneuro, down by 2.3% from the 3,332 million reported in 2008.

PHCG (Healthcare activities) showed improvement, almost stable comparedto the previous year thanks to PMD (Personal Message Delivery). Events andPublic Relations show a very severe decline. A reorganization program hasbeen initiated to ensure the relaunch of these activities as soon as themarket takes off again.

With the advertising market contracting by roughly 13% according tocurrent estimates, organic growth contraction for Publicis Groupe was limitedto 6.9%.This figure is attributable to the overall economic environment, wasamplified by the Chapter 11 process at General Motors. Decline was limitedthanks to the 5.5% organic growth achieved in digital communications.

It should be emphasized that in the first nine months of 2009, digitalcommunications accounted for 21.3% of Groupe's consolidated revenue, up from18.5% in the prior-year period (at 2009 exchange rate). Likewise, emergingmarkets generated 22.1% of total revenue in the first nine months, comparedwith 21.7% for the same period of 2008 (at 2009 exchange rate).

- Highlights in the first nine months of the year

- New Business: 4.8 billion dollars

New Business at 4.8 billion dollars in the first nine months of the year,remain very satisfactory, Publicis Groupe being ranked number one worldwideby Nomura.

This amount, net of account losses, compares with the 3.7 billion dollarreported in the first nine months of 2008.

In the third quarter alone the following wins are worth noting:

ABInbev-Becks (U.S.A), Barrat (U.S.A), Bristol Myers Squibb (U.S.A.),Cadbury (U.K.), Carrefour (Brazil), Fiat (Brazil), Huiyjan Juices (China),Kerry Foods (U.K.), RBS (U.S.A), Telefonica (Latin America) Wendy's (U.S.A,Canada) and Wing Tai Holdings (Singapore).

- External growth and strategic initiatives

Several major strategic initiatives took place during the first half ofthe year. Chief among them were the cooperation agreements signed withMicrosoft on June 25th 2009, and the acquisition of Razorfish, the world'ssecond largest interactive marketing agency and a Microsoft subsidiary. TheRazorfish transaction closed on October 13th and will be consolidated as ofthat date. The total consideration for the transaction amounted to 369million euros through delivery of 6.5 million shares and the balance in cash.With this acquisition, Publicis Groupe strengthens its leading position indigital communications, gains additional digital capabilities and enrichesthe Group's portfolio with blue chip clients. The integration process isrolling out following a precise plan, should bring 13 million dollars of costsavings making the acquisition accretive as of 2011.

- Financial situation at September 30, 2009

At September 30, 2009, net debt is 789 million euro, a 456 million-eurodecrease year-on-year.

Average net debt for the first nine months of 2009 is 961 million euro.

At comparable exchange rates, net debt stands 112 million euro lower thanat September 30, 2008.

At September 30, 2009, Publicis Groupe has very satisfactory liquidity,with 3.6 billion euro available (3.4 billion excluding uncommittedfacilities).



Taking into account the sharp decrease of the advertising market, numbersbooked by Publicis Groupe represent a good relative performance. The Groupe'sorganic growth in the 3rd quarter signals the end of the continuousdeterioration that has been observed month after month since the summer of2008.

Although overall visibility is low and there is still considerableuncertainty about the state of the economy, Publicis Groupe confirms agradual recovery with, however, a few more negative quarters and a return togrowth likely to occur around the middle of 2010. During this upcomingperiod, Publicis Groupe anticipates a better performance than the market andwill maintain its cost reduction actions.

Publicis Groupe's financial position remains very satisfactory, withstrong liquidity and an expected decrease of the average net debt.

About Publicis Groupe

Publicis Groupe [Euronext Paris: FR0000130577] is the world's fourthlargest communications group. In addition, it is ranked as the world's secondlargest media agency, and is a global leader in digital and healthcarecommunications. With activities spanning 104 countries on five continents,the Groupe employs approximately 43,000 professionals. Publicis Groupe offerslocal and international clients a complete range of advertising servicesthrough three global advertising networks, Leo Burnett, Publicis, Saatchi &Saatchi, and two multi-hub networks, Fallon and 49%-owned Bartle BogleHegarty. Media consultancy and buying is offered through two worldwidenetworks, Starcom MediaVest Group and ZenithOptimedia; and interactive anddigital marketing led by Digitas and Razorfish. Publicis Groupe recentlylaunched VivaKi to leverage the combined scale of the autonomous operationsof Digitas, Razorfish, Starcom MediaVest Group, Denuo and ZenithOptimedia todevelop new services, tools, and next generation digital platforms. PublicisGroupe's Specialized Agencies and Marketing Services offer healthcarecommunications, corporate and financial communications, sustainabilitycommunications, shopper marketing, public relations, CRM and directmarketing, event and sports marketing, and multicultural communications. Website:

"Certain statements in this report, apart from historical facts, mayconstitute forward-looking statements or unaudited financial forecasts. Theseforward-looking statements involve certain risks and uncertainties and mayprove to be materially different from actual future results. Allforward-looking statements are expectations as of the date of this report,and Publicis Groupe undertakes no obligation to update them for new events orfor any other reason except as required by law. Publicis Groupe encouragesyou to study carefully all information concerning factors that may impact itsbusiness, as described in the Reference Document filed with the French marketauthority (Autorite des Marches Financiers)."

Total (France), TGI Friday's (United States), Whirpool (Brazil),Carrefour (Brazil)


The Auteurs (United Kingdom), Kerry Foods (United Kingdom), Burton'sFoods (United Kingdom), Unilever (United Kingdom),Cadbury (UK), Innocent(UK), Oxfam International (UK), Comic Relief (UK), The BBC - Olympics 2012Coverage (UK)

Leo Burnett

Caltex oil (Australia), Carrefour (Colombia), MCYS Government SocialAwareness (Singapore), MillerCoors (United States), Turkcell telecom(Turkey), Wellatone-P&G (Russia), Falabella department store (Colombia), TVOtelevision channel (Canada), Alfa telecommunications (Libya), Tourism Board(Singapore), Movistar (Colombia), Telkomsel mobile telecom (Indonesia),Herbapol food (Poland), BMW (China), Ajisen Ramen (China), Alpina (Columbia),Zeebo Toys (Mexico), Shop Direct (UK), Fiat (Brazil), Heinz(Mexico), Sportsbet (Australia), Thailand Business Coalition on Aids

Publicis Worldwide

Alitalia (Italy), Carrefour (France/International), Procter & GambleCrest (United Kingdom), Vichy (United Kingdom), Wrigley (China), ZurichConnect (Switzerland), Century 21 (France), BNP Paribas-Fortis (Belgium),Pernod-Ricard (United Kingdom), Swatch (Brazil), Nestle (Brazil), ABInBev -Beck's (USA), Barratt (USA), RBS (United States), BMW (Singapore), TheChidren's workforce Development Council (UK)

Publicis Consultants

Biscuit LeClerc (United States), Carrefour (France), City of The Hague(Netherlands), Diageo (United Kingdom), FIMF online banking services(Germany), Lactalis dairy products (Italy), Ministry of Agriculture(Netherlands), Ministry of Economy, Industry and Employment (France), RomanMeal (United States), Sanofi-aventis (Germany), Multaq Pharmaceuticals (USA),Mead Johnson (USA), French Hospitals Foundation, Shell (Germany), Ministry ofInterior (The Netherlands)

Publicis Healthcare Communications Group (PHCG)

Sanofi-aventis (Aplenzin-United States), Biogen-Idec neurology (UnitedStates), Durex (United States)

Saatchi & Saatchi

BingoLotto (United Kingdom), House of Travel (New Zealand), InvalidityInsurance (Switzerland), LMG International auto insurance (Thailand),Panasonic (Indonesia), RTA/Dubai Metro Launch (United Arab Emirates), Suninghousehold electrical appliances (China), Tsingtao beer (China), Mideahousehold electrical appliances (China), Cadbury Dairy Milk (Australia/NewZealand), MillerCoors-Miller Genuine Draft, Keystone, NGD 64 beer (UnitedStates), HP (Switzerland/EMEA), San Miguel (UK), Siemens (China),Amway-Nutrilite (China), Maxima (India), Kerry Foods (UK), Wei Chuan(Taiwan), Huiyjan Juices (China), Oak Pacific, Asia games & China Football Club (China), Lion Nathan- Hahn SuperDry (Australia), Sara Lee/Douwe Egberts - Senseo (Belgium/Europe),Haagen-Dazs (France), EurosportBet (France), Vivesco (Germany), Postel (Italy)

Starcom MediaVest Group

Alfa telecommunications (Libya), Capital One (United Kingdom), CerveceriaNacional (Panama), Heinz (Mexico), Honda (Spain), Kraft Foods (United ArabEmirates), Metro Group (Poland), PTC telecommunications (Poland), PZUfinancial services (Poland), Schering Plough Claritin (Hungary), CNAMTShealth insurance (France), Supermercados Plaza's (Venezuela), BupaInternational health insurance (United Kingdom), British Gas (UnitedKingdom), Comcast (United States), An Post postal service (Ireland), NationalFoods / Dairy Farmers (Australia), Wrigley food (United States), TGI Friday's(United States), Adevarul Holding media (Romania), Abbott Healthcare (India),Baguepi food (France), MEDEF (France), Telefonica (Latin America), Autoglass(United Kingdom), Bristol-Myers Squibb (United States), World Gold Council(United Arab Emirates)

The KaPlan Thaler Group

Wendy's (United States, Canada)


Al-Bandar Group multibrand shop (Saudi Arabia), Nestle (Netherlands),Si.mobil Vodafone (Slovenia), Jenny Craig (United States), Ubank (Australia),Jamena Gas Networks (Australia), China Mobile (China), T38/40 weight-lossproduct (Portugal), MTV (United Kingdom), Panasonic (Indonesia), Turismo deValencia (Spain), Haberturk newspaper (Turkey), British Airways (UnitedKingdom), Kang Yuan pharmaceutical products (China), Parques Reunidosamusement parks (Spain), Sanofi-aventis (Ukraine), Madrid 2016 (Spain), ICOpublic institute for loans and financing (Spain), Tourism of Cataluna(Spain), 118118 (United Kingdom), JP Morgan (United States), TCL electroniccomponents (China), Videocon Group telecommunications (India), Ministry ofCommunity Development, Youth and Sports (Singapore), Travel Channel(Germany), Charles Vogele garment industry (Germany), JKP music production(Germany), Ministry of Agriculture and Rural Development (Poland), LIDLsupermarkets (Spain), Saxo Bank (Switzerland), Gucci Group (United States),Perfetti Van Melle confectioner (China), Red Bull (China), Mars (China),Hyundai (Czech Republic), Roads and Transport Authority (United ArabEmirates), Red.Es Public institution, entity for the ministry of industry,tourism, and commerce (Spain), Dairy Queen food (United States), MortgageChoice (Australia), Marriott (Asia-Pacific), Wearnes Automotive (Singapore),Gamina digital (Taiwan), l'Oreal (Thailand), Turismo del Pais Vasco (Spain),Pringle of Scotland Clothing (International), Georgia Pacific (Spain),WingTai Fashion (Singapore), Unitech Wireless (India)PARIS, October 27 /PRNewswire-FirstCall/ -- First 9 months of 2009: - Revenue: EUR 3.256 billion - Revenue growth (as published): -2.3% - Organic growth: -6.9% - Net New Business: USD 4.8 billion Q3 2009: - Revenue: EUR 1.047 billion - Revenue growth (as published): -5.3% - Organic growth: -7.4%

SOURCE Publicis Groupe Services

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