Record year of new business sees Publicis revenues top €4bn mark

by Jennifer Whitehead, Brand Republic 08-Feb-06, 08:40

LONDON - Publicis Groupe has reported a rise in revenue for 2005 of 7.7% to €4.1bn (£2.8bn) after a year of record new business wins totalling $9.8bn and what it described as a 'vigorous' fourth quarter.

Shares in Publicis, traded on the Paris Bourse, rose by over 7% this morning on the news, trading at €31.50, a rise of 41 cent, as the company forecast that it would beat its own profit margin target for the year.

The French ad group, owner of Leo Burnett, Starcom MediaVest and ZenithOptimedia, reported a leap in fourth-quarter revenues of 13.4% to €1.19bn, with organic growth of 8.6%. The growth came across all regions of the company, including a leap in revenues of 5.2% in Europe to €488m and an 11.7% rise in North America to €493m.

Among its new-business victories in the last quarter of the year was the $3.5bn North America media account for General Motors, won by Starcom MediaVest, and the £100m L'Oreal Europe media work, which went to ZenithOptimedia.

Maurice Levy, chairman and CEO of Publicis Groupe, struck a bullish note commenting on the results.

He said: "In our business, performance has nothing to do with luck -- the growth we achieved in 2005 and the exceptional rise in new accounts won during the year reflect both the commitment of our teams and a service offering fully attuned to advertisers' special needs."

Levy added that prospects for the year ahead are good, as the new business won last year drives growth, along with major sporting events such as the World Cup and the Winter Olympics, as well as firmer markets in France and Germany.

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