Marketing

Publicis revenues up 7.1pc in Q2

29.07.2010
Publicis Groupe - parent company of Leo Burnett, Publicis Worldwide, Fallon, Mediavest, Saatchi & Saatchi and ZenithOptimedia, to name just a few – this morning announced organic growth of 7.1pc for the second quarter of 2010 and 5.3pc for the half year.

Revenue for the first half of 2010 was €2.538m, up from €2,209m in H1 2009, an increase of 14.9pc.

The company said first half growth reflected the strong recovery in advertising expenditure after the record slump in 2009. It said its larger networks, particularly Leo Burnett and Publicis Worldwide along with VivaKi, made the most of the upturn and that digital activities maintained their strong growth trend.

For the first half of this year, 33pc of the group's revenue came from advertising, 20pc from media and 47pc from specialised agencies and marketing services, including digital activities.

In terms of regions, Europe accounted for €805m of revenue, an organic growth of 3.1pc over H1 2009; North America grew by 6.6pc to €1,258m; Asia Pacific was up 6pc to €286m; Latin America jumped 10.8pc to €126m; and Africa and the Middle East grew 3.3pc to €63m.

The company reported Q2 2010 revenue of €1,376m, an increase of 21.3pc over Q2 2009. It said the second quarter had undoubtedly benefited from a low basis of comparison, but that the marked upswing in advertising business seen in the first quarter had been maintained. New business wins in 2009 and an increase in spending by major clients had also fuelled growth, according to the company.

“Publicis Groupe has once again given proof of its energy and ability to create value, even in the aftermath of the worst global economic crisis in many years,” said Maurice Lévy, chairman and CEO, Publicis Groupe.

“This growth is the result of a strategy that has been effectively executed over a number of years,” he continued. “We were quick to take the digital route, gaining a decisive lead over our competitors and providing clients with the best and most innovative solutions for the new landscape being shaped by the explosion of digital technology.

“We also opted for expansion in emerging markets. The economic crisis may have slowed the pace of their growth, but ZenithOptimedia’s latest estimates for 2011 and 2012 bode well for strong growth.

“Without lapsing into the euphoria that these half year results for our Groupe might warrant, I remain firmly convinced that Publicis Groupe will succeed in outperforming the market in terms of both growth and margin.”