Publicis sees organic growth of 4% as new business hits record level

by Jennifer Whitehead, Brand Republic 04-May-05, 09:00

LONDON - Publicis has reported organic revenue growth of 4% to €887m (£604m), thanks to improvements in North America and growth in Asia-Pacific and Latin America while Europe peformed less well.

While Europe lagged behind with organic growth of only 1.8% for the quarter, there were some bright spots in the region, particularly France, which reported organic growth of 7%.

The reported rise in revenues was 2.4%, up from €866m, but this figure includes the negative impact of exchange rates.

The figure beat expectations of Exane BNP Paribas and Deutsche Bank, which had forecast revenues of around €865m and organic growth of at 3.5%.

The French advertising giant, owner of agencies including Leo Burnett, Saatchi & Saatchi and ZenithOptimedia, reported that net new-business wins for the quarter stood at the record level of €1.13bn.

These include an extension of its work on General Mills and the Laughing Cow and Babybel cheese accounts, won by Saatchi & Saatchi in the US, and Fallon's win of the Bacardi/Martini account in the UK. ZenithOptimedia picked up the JP Morgan Chase and Echostar accounts in the US, and Staples & Office World in the UK.

Maurice Levy, chairman and CEO of Publicis Groupe, said: "The numbers achieved in the first quarter combined with record levels of new business make me confident about the prospects for group performance over 2005 as a whole."

Publicis is forecasting 3% organic growth for the year. Shares in the company, listed on the Paris Bourse, rose by 1.7% this morning to €22.62.

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