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Publicis Groupe: 3rd Quarter Revenue.



PARIS Paris, in Greek mythology
Paris or Alexander, in Greek mythology, son of Priam and Hecuba and brother of Hector. Because it was prophesied that he would cause the destruction of Troy, Paris was abandoned on Mt.
, October 29 /PRNewswire-FirstCall/ -- Third Quarter:
  - Revenue up 10.8%
  - Revenue Growth of 14.5% at constant exchange rates
  - Organic Growth improvement to 4.6%
  First Nine Months of 2007:
  - Revenue up 7.5%
  - Revenue Growth of 11.6% at constant exchange rates
  - Organic Growth of 2.6%
  Maurice Levy, Chairman & CEO of Publicis Groupe, commented:



"Third quarter numbers are good. Revenue grew by close to 11%, a performance which would have been nearly 15% at constant exchange rates. For the first nine months of the year, revenue grew 7.5% and would have approached 12% before the impact of exchange rate variations.

We are also encouraged by the fact that our third quarter organic growth rate has accelerated to 4.6%, in line with our internal forecasts, following a disappointing first half.

All our operations are performing well with the exception of Publicis Healthcare, penalized by difficulties in the healthcare sector in general, and in its Selling Solutions unit in particular. Attention should be directed to the excellent double-digit growth of our media agencies and of Digitas, the latter not yet taken into account in calculating organic growth for 2007. Digitas is actively pursuing its international roll-out through recent acquisitions, and the Groupe has added important

new capabilities in mobile and digital marketing.

We have built up leading positions in the digital sector and have strengthened our position in high-growth emerging economies, in line with our strategy.

In key markets, Publicis Groupe has both the talent and the assets to provide even better service to our clients and improve our market share.

All these developments are leading to the steady transformation of the Groupe and of our business model, which will positively affect our future growth.

The solidity of the Groupe's margin and our positive organic growth are in line with our expectations and enable us to confirm the objectives announced in the first half of the year."
  REVENUE
  - Third Quarter Revenue 2007



Publicis Groupe's consolidated revenue for Q3 2007 rose 10.8% to EUR EUR

In currencies, this is the abbreviation for the Euro.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 1,122 million, compared with EUR 1,013 million for the same period in 2006. In Q3 alone, the negative impact of exchange rate variations was EUR 33 million. At constant exchange rates the increase would have been 14.5%.

Organic growth in the third quarter was 4.6%, in line with the Groupe's expectations. It should be noted that the performance of Digitas (+17.7%) is not taken into account in the calculation of Groupe organic growth in 2007.

The third quarter saw a steady progression at Publicis Worldwide and Leo Burnett For the company, see .

Leo Burnett (October 21, 1891 - June 7, 1971) was an advertising executive famous for creating such icons as the Jolly Green Giant, the Marlboro Man, Toucan Sam, Charlie the Tuna, Morris the Cat, the Pillsbury Doughboy, the 7up "Spot", and Tony the
, and strong growth at Saatchi & Saatchi, particularly in the USA. Publicis Groupe Media networks, Starcom MediaVest and ZenithOptimedia, both achieved double-digit growth. Publicis Events and other SAMS SAMS Scottish Association for Marine Science
SAMS Space Acceleration Measurement System
SAMS South American Missionary Society (of the Episcopal Church, Inc)
SAMS School of Advanced Military Studies (US Army) 
 agencies also posted good growth (with the exception of Publicis Healthcare where the difficult healthcare market has had an impact).
  Breakdown of Third Quarter Revenue by Region
  The geographical breakdown of revenue is as follows:

      (in EUR         3rd Quarter             Growth in 3rd Quarter
     millions)
                    2007      2006    Variation  Variation   Organic Growth
                                                in constant
                                                 currencies

  Europe                418    397       5.3%        5.3%          2.7%
  North America         487    429      13.5%       21.8%          3.7%
  Asia Pacific          125    113      10.6%       12.6%          7.5%
  Latin America          66     50      32.0%       32.0%         13.4%
  Middle East &          26     24       8.3%       18.2%         19.1%
  Africa
  Total               1,122  1,013      10.8%       14.5%          4.6%





This regional breakdown shows the very good performance of emerging markets, particularly China, and a promising rise in Europe and the USA.

In the third quarter, 43.4% of Groupe revenue came from North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , 37.3% from Europe, 11.1% from Asia Pacific, 5.9% from Latin America and 2.3% from the Middle East and Africa. The share of emerging economies in the Groupe's total third quarter revenue rose to 22%.

- Revenue at September 30, 2007

At September 30, Publicis Groupe's consolidated revenue for the first nine months totaled EUR 3,370 million, up 7.5% from EUR 3,135 million for the corresponding period in 2006. At constant exchange rates, revenue growth for the period would have been 11.6%.

The weakening of the dollar and other currencies against the euro had a negative impact on revenue for the period (EUR 117 million).

At September 30, organic growth was 2.6% for the first nine months.

As mentioned, this growth rate reflects a base of comparison which remains unfavorable, a phenomenon particularly marked in the first two quarters of the year. Accounts won in recent months, however, are beginning to contribute to the revenue stream.

Breakdown of Nine Months Revenue by Region

Publicis Groupe's revenue growth (+7.5%) over the period shows significant variations from one geographical region to another:
      (in EUR       At September 30       Growth in first nine months
     millions)
                    2007      2006    Variation Variation  Organic Growth
                                                    in
                                                 constant
                                                currencies

  Europe            1,264    1,217       3.9%      3.7%         1.0%
  North America     1,495    1,351      10.7%     19.4%         1.9%
  Asia Pacific        360      337       6.8%      9.8%         6.0%
  Latin America       170      154      10.4%     14.1%         8.1%
  Middle East &        81       76       6.6%     14.1%        13.1%
  Africa
  Total             3,370    3,135       7.5%     11.6%         2.6%





For the first nine months of the year, one can observe an improvement in organic growth, particularly sustained since July in Europe and North America, while Latin America and Asia Pacific remain on a positive trend.

At September 30, North America had generated 44.4% of Groupe revenue, Europe accounted for a further 37.5%, Asia Pacific contributed 10.7%, Latin America 5%, followed by the Africa / Middle East region with 2.4%. The share of emerging economies continued to grow, totalling 20.9% of Groupe revenue over the period.

Breakdown of Revenue by Sector at September 30, 2007

The breakdown of Groupe revenue by sector largely reflects the world economy as a whole. The client portfolio represents an excellent balance between consumer durables Consumer durables

Consumer products that are expected to last three years or more, such as an automobile or a home appliance.


consumer durables

See durable goods.
, consumer goods consumer goods

Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and
, retail, communication businesses and new technologies, and this, combined with the geographical breakdown of revenue, provides Publicis Groupe with a very sound base.

In this configuration, the Groupe is well-equipped to withstand variations in economic cycles, while retaining the flexibility to manage developments for global clients and local economies alike.

NEW BUSINESS

The volume of new business remains excellent at more than USD USD

In currencies, this is the abbreviation for the U.S. Dollar.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 4 billion for the first nine months of the year.

EXTERNAL GROWTH

In line with its strategy, the Groupe actively continued its external growth during the third quarter. Digitas established operations in China through the acquisition of CCG CCG Chicago
CCG Collectible Card Game
CCG Canadian Coast Guard
CCG Country Commercial Guide
CCG Children's Cancer Group
CCG Commission Canadienne des Grains (Canadian Grain Commission) 
 and set the stage for further growth in Europe with the acquisition of France's Business Interactif, an operation which will be completed in November with the start of the delisting procedure. The Groupe also reinforced its position in India by acquiring Capital Advertising in New Delhi. The Groupe has also been completing its media presence in Italy with the acquisition of MC&A, while reinforcing its SAMS offering in the United Kingdom through the acquisition of SAS (1) (SAS Institute Inc., Cary, NC, www.sas.com) A software company that specializes in data warehousing and decision support software based on the SAS System. Founded in 1976, SAS is one of the world's largest privately held software companies. See SAS System. .

OUTLOOK

Continued expansion in the digital sector against a backdrop of strong growth in interactive markets, growth in most emerging economies as well as the very good performance of traditional markets is reflected in third quarter revenue, enabling the Groupe on the basis of information at hand, to confirm its organic growth target of over 4% for 2007.

Publicis Groupe (Euronext Paris: FR0000130577) is the world's fourth largest communications group. In addition, it is ranked as the world's second largest media counsel and buying group, and is a global leader in digital and healthcare communications. With activities spanning 104 countries on five continents, the Groupe employs approximately 44,000 professionals.

The Groupe offers local and international clients a complete range of communication services, from advertising, through three autonomous global advertising networks, Leo Burnett, Publicis, Saatchi & Saatchi and two multi-hub networks, Fallon and 49%-owned Bartle Bogle Hegarty Bartle Bogle Hegarty (BBH) is a British advertising agency, responsible for some of the more notable advertising campaigns of the last twenty years. The company was founded by John Bartle, Nigel Bogle & John Hegarty in 1982. ; to media consultancy and buying, through two worldwide networks, Starcom MediaVest Group and ZenithOptimedia; interactive and digital marketing led by Digitas; Specialized Agencies and Marketing Services (SAMS) offering healthcare communications, corporate and financial communications, public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most , CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization.  and direct marketing, event communications, sports marketing and multicultural communications.
  Web site: http://www.publicisgroupe.com/
  Third Quarter 2007 New Business
  Main wins:
  Leo Burnett:



Baily's (US), Pharmavite (US), General Motors (US), Allstate Insurance (US), Harrah's (US), Numico (UK), Numericable (France), Sama Dubai (Dubai), Stockland (Australia), Coca-Cola (China), Emperor Group (China), Heineken (China)

Publicis:

Patrimoine Canada (Canada), Marionnaud (France), Boston International (Italy), Spanish Traffic Directorate (Spain), National Basketball Association (US), Bticino (Italy), Aircel (India)

Saatchi & Saatchi:

Mitsubishi Motors (Czech Republic & Slovakia), Novartis (India), Sony Entertainment Television Sony Entertainment Television is a general entertainment channel, owned or co-owned by Sony Pictures Entertainment. There are at least four versions of this channel existing:
  • Sony Entertainment Television Asia
  • Sony Entertainment Television (India)
 (India), Jindal Steel (India), Contact Energie (New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. ), Amplifon (UK), Visa (UK)

Starcom MediaVest Group:

Jemca Jemnice (Czech Republic), Illva Di Saronno (Italy), Morgan Stanley (Italy), Diageo Alcohol (Venezuela), Corporation Radial (Peru), Richemont, Cartier, Dunhill (Seoul), Avon Cosmetics (Venezuela), UOB UOB United Overseas Bank
UOB University of Bristol (UK)
UOB University of Birmingham (Birmingham, United Kingdom)
UOB University of Bahrain
UOB University of Bath (United Kingdom) 
 Bank Buana (Indonesia), Asobancaria (Colombia), Smart Telco (Indonesia), Interpark, Mirae Asset (Seoul)

ZenithOptimedia (media consultancy and buying):

MFI MFI Microfinance Institution
MFI Money Flow Index
MFI Melt Flow Index
MFI Median Family Income
MFI Malaria Foundation International
MFI Massachusetts Family Institute
MFI Multi-port Fuel Injection (automobile) 
 (Spain), Verizon Wireless (UK), Lagardere Active Media (Singapore), Instituto de Credito Official (Spain), Rubbermaid (US), CIMB CIMB Commerce International Merchant Bankers Berhad
CIMB Current Issues in Molecular Biology (periodical)
CIMB Corporate Information Management Branch (British Columbia, Canada) 
 Group (Malaysia), Rhapsodie America (UK), Dairy Queen (Argentina)

Leo Burnett:

United Airlines (US), Baily's (US), Pharmavite (US), General Motors (US), Allstate Insurance (US), Harrah's (US), Numico (UK), Numericable (France), Sama Dubai (Dubai), Stockland (Australia), Coca-Cola (China), Emperor Group (China), Heineken (China)

Publicis:

Patrimoine Canada (Canada), Marionnaud (France), Boston International (Italy), Spanish Traffic Directorate (Spain), National Basketball Association (US), Bticino (Italy), Aircel (India)

Saatchi & Saatchi:

Mitsubishi Motors (Czech Republic & Slovakia), Novartis (India), Sony Entertainment Television (India), Jindal Steel (India), Contact Energie (New Zealand), Amplifon (UK), Visa (UK)

Starcom MediaVest Group:

Jemca Jemnice (Czech Republic), Illva Di Saronno (Italy), Morgan Stanley (Italy), Diageo Alcohol (Venezuela), Corporation Radial (Peru), Richemont, Cartier, Dunhill (Seoul), Avon Cosmetics (Venezuela), UOB Bank Buana (Indonesia), Asobancaria (Colombia), Smart Telco (Indonesia), Interpark, Mirae Asset (Seoul)

ZenithOptimedia (media consultancy and buying):

MFI (Spain), Verizon Wireless (UK), Lagardere Active Media (Singapore), Instituto de Credito Official (Spain), Rubbermaid (US), CIMB Group (Malaysia), Rhapsodie America (UK), Dairy Queen (Argentina)
  Main Losses:
  INPES (France), Wrigley (Canada), Paramount (UK)

  Contacts:

  Publicis Groupe:
  Peggy Nahmany
  Corporate Communications
  +33(0)1-44-43-72-83

  Martine Hue
  Investor Relations
  +33(0)1-44-43-65-00



CONTACT: Contacts: Publicis Groupe, Peggy Nahmany, Corporate Communications, +33(0)1-44-43-72-83; Martine Hue, Investor Relations Investor relations

The process by which the corporation communicates with its investors.
, +33(0)1-44-43-65-00
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Date:Oct 29, 2007
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