Levy predicts return to growth as Publicis UK revenues down

by Tristan O'Carroll, mediaweek.co.uk 27-Oct-09, 10:12

LONDON - Publicis Groupe has warned its UK revenues fell "sharply" year on year in Q3, as the company's global income fell by 5.3%.

The France-based group, which owns ZenithOptimedia and Starcom MediaVest Group, did not specify its actual UK revenues or profits. However, it disclosed that the UK fell into a category of countries where organic revenue growth - growth excluding the impact of acquisitions and current changes - declined between -5% and -10%.

Globally, its revenue in the third quarter was Euro1.05bn, down 7.4% year on year.

In Europe, revenues totalled Euro359m in Q3, down 9.5% year on year on an organic basis.

The group did, however, signal that growth could be about to return, noting the lowest point of the ad market was "probably" reached during the summer. "One can assume that the regular deterioration of the market has stopped and that a slow and progressive recovery is under way," the company added.

Maurice Lévy, chairman and chief executive of Publicis Groupe, said the advertising market is "starting its recovery which will be slow and progressive". He added: "First positive growth numbers should be established during the second half of 2010. Publicis Groupe should continue to outperform the market."

Earlier this month, Microsoft completed the $500m sale of digital agency Razorfish to Publicis Groupe. The deal was highly significant for Publicis, as it means it has met its goal of generating 25% of its total revenue from digital sources by the end of 2010.