Publicis profits boosted after new-business wins

by Joe Lepper, Brand Republic 27-Jul-05, 09:00

LONDON - Publicis Groupe, the owner of agencies including Saatchi & Saatchi and Leo Burnett, has reported a 49% rise in first-half net profits following a spate of new-business wins.

During the first half of the year, there was also a 12% rise in operating profit with new business reaching record levels of $6.1bn (£3.5bn).

As well as recent wins such as the General Motors media account, growth has also been fuelled by a strong showing from its North America and Asia operations and a drop in interest expenses and tax rates, according to a statement from Publicis, which is the fourth largest advertising group in the world.

"Operations in North America and Asia turned in another strong performance while recovery at European units continued in the second quarter in a relatively sluggish overall environment," Publicis said.

Publicis also bought a 50.1% stake in the UK public relations consultancy Freud Communications, in a deal reported to be netting as much as £14m for the agency's founder and chairman Matthew Freud.

Last month, Publicis Groupe chairman and chief executive Maurice Levy said he was optimistic about the firm's prospects, predicting a profit margin above 15% for 2005.

The General Motors $3.5bn US media account was won by Publicis's Starcom MediaVest in May. Other clients include Procter & Gamble and L'Oreal, which two weeks ago awarded ZenithOptimedia its £100m European media account.

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