Publicis revenues rise 4.5% with Europe set to improve
PARIS - Publicis Groupe, owner of Saatchi & Saatchi and ZenithOptimedia, saw revenues rise by 4.5% during the second quarter to €981m as the European market continued to pick up and predictions that Europe would equal the US in 2005.
In 2004, growth in Europe still lags behind North America, at 2.2% for the quarter compared with 3.7% for North America. European operations contributed €401m (£266m) and North American operations €427m.
Latin America proved to be the biggest growth area for the French group, with revenues rising by 35% to €41m, while Asia Pacific continues to outpace Europe up by 6.7% to €95m.
Publicis said that losses, including the $220m Subway Restaurants business, which shifted out of Fallon after only nine months, and Toys R Us, won from Leo Burnett by WPP's Young & Rubicam, were offset by new business wins. Notable among these were O2, won by ZenithOptimedia in the UK, Pizza Hut, won by Starcom Motive in the UK, and an extension of Saatchi & Saatchi's work on Visa in the UK.
Maurice Levy, chairman & CEO of Publicis, said: "In the second half of the year, we anticipate consolidation of market growth. And we have full confidence that Publicis Groupe will be able to take advantage of this."
Looking towards next year, Levy painted a postive picture and said he expected more growth in Europe after the quadrennial effects of the US Presidential elections, the Athens Olympics and Euro 2004.
He added: "First indications for 2005 market growth are that Europe should equal the US, no longer driven by the run-up to the presidential elections. Based on current forecasts, our growth objectives should remain firm."
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