Publicis Groupe: 1st Quarter 2009 Revenue
PARIS, April 29 /PRNewswire-FirstCall/ --
- Revenue: EUR 1,075 million
- Revenue Growth (published): +1.3%
- Organic growth: -4.4%
- New Business: USD 1.7 billion
(Publicis Groupe ranked no. 1 by Nomura)
“With a rise of 1.3% in published revenue and a 4.4% decline in organic
growth, Publicis Groupe is holding up well in this fiercely turbulent
economic crisis.
Although I cannot be satisfied with the decrease in our organic growth,
all available indicators seem to point in the same direction: market
deterioration is much worse than anticipated. Our main competitors have
published numbers with a decline between 5.6% and 6.6%, clearly showing that
Publicis Groupe is gaining market share. The strategy followed over the last
few years is bearing fruit: growth in digital activities and emerging markets
has helped to cushion the shock. In addition, our comprehensive and
well-adapted offer has proven successful for advertisers: Publicis Groupe was
ranked 1st in New Business in 2008, a distinction we have maintained
throughout the first quarter of 2009. We have an even bigger lead and
everything indicates that we should maintain this advantage over our
competitors in the month of April. We are strengthening this commercial
success by forging stronger ties with our clients across all sectors. Efforts
made by the group are fully focused on the following four objectives:
providing better service to our clients in these difficult times, gaining
market share, protecting our margins and consolidating Publicis Groupe’s
financial health. Forecasts suggest that the low point will be this summer,
with the second half of 2009 proving better than the first. Recovery is
expected in the summer of 2010. The latest indicators support this view.”
I. revenue
Group consolidated revenue came to
quarter of 2009, up 1.3% from a year earlier.
Organic growth was -4.4% for the quarter, declining less than the overall
market.
II. Activity of the first quarter
The resilience of revenue and the relatively limited decline in organic
growth in the first quarter were attributable mainly to the effects of the
strategy implemented over the last few years. The market decline was
cushioned by growth of digital activities in
performance from emerging markets like
and the
economies. In the 1st quarter 2009, Advertising represented 38% of total
revenue, SAMS 41% (including 100% of digital activities) and Media activities
21%. Digital activities alone accounted for 20.5% of total revenue, compared
with 17.6% in the 1st quarter 2008 and 19.6% for the full year 2008 (at 2009
exchange rate).
The client portfolio remains well diversified, with over 50% showing
growth. The automotive sector is in steep decline (nearly 20% at constant
exchange rate) and represented 13% of revenue in the first quarter of 2009,
compared with 15% in the full year 2008.
Revenue by Geographic Region
(in millions of euros) Revenue Organic growth 2009/2008
1st quarter 1st quarter
2009 2008
Europe 357 403 -6.6% -11.6%
North America 526 466 -3.6% +13.0%
Asia-Pacific 114 116 -6.3% -1.6%
Latin America 51 52 +3.1% -2.1%
Middle East & 27 24 +3.0% +12.8%
Africa
Total 1,075 1,061 -4.4% +1.3%
Kingdom
were hurt by the slowdown of the first quarter, which was even more
pronounced in March. Germany is still in positive territory (0.9%), and
central European countries continued to experience solid growth (14.8%).
because of digital activities. The
by Korea,
to grow.
In this difficult economic situation, Publicis Groupe remains determined
to protect its profitability and financial health. Certain measures taken
since
are being maintained in 2009. The emphasis on managing operating costs,
further development of optimization operations such as simplified structures,
the “multi-door” policy, and the consolidation of Shared Service Centers such
as “Americas” will pay off in 2009 and especially in 2010.
The implementation of an ERP at the group level was launched at the
beginning of the year.
– Net Debt at
On
issue amount of the Oceane 2018 (Oceane Publicis Groupe SA
2018-2.75%-FR0000180127) in the amount of
At
1,077 million
– New business:
Despite reservation shown by advertisers, Publicis Groupe took in
billion
and the relevance of its offer. This performance puts Publicis Groupe at the
front of the pack in terms of New Business wins for the first three months of
the year (source: Nomura ranking).
The month of April is slated to be highly satisfactory, with the new
HP-PCS account (Personal Computers for
and confirmation of the following wins: Shanghai Expo 2010, Visa 2012 and
Siemens (China).
III. First quarter highlights
– Employee shareholding
As approved at the combined shareholders meeting on
resolution), Publicis Groupe’s Management Board has decided to closely
associate the employees to Publicis Groupe development.
Firstly, the Management Board decided, with the Supervisory Board’s
approval, to allocate 50 free shares in the first half of 2009 to each of the
4,500 employees in
owns over 50%. The granting of these shares will not be performance related,
but will be offered to those with the company for a minimum of three months
and will be subject to a two-year holding period from the date the shares are
granted.
The free share scheme in
employee share-ownership program which will gradually benefit all the group’s
employees in countries where the group has significant operations. This plan
will be implemented in the coming two years in order to take into account the
diverse legal systems and tax regimes.
Secondly, a co-investment program has been offered to approximately 160
key executives to enable them to participate in a Publicis Groupe share
investment program.
This program is based on a personal investment through a dedicated
structure, and real financial commitment on the part of the key executives.
It also includes retention and group performance incentives. Subject to
certain conditions, executive-investors will receive free shares rewarding
loyalty after three or four years according to local rules. In addition,
executive-investors may receive performance-related free shares based on
Publicis Groupe’s organic growth and operating margin compared with its peers.
Concerning the members of the Management Board, the free share allocation
will be in compliance with the AFEP/MEDEF recommendations of
Those free shares will only be awarded based on the group’s growth and margin
performance by comparison with its peers. The rules concerning continued
presence in the group and the holding period will be the same for everyone.
By involving employees to the greatest extent possible and creating a
structure of co-investment and incentive, the group intends to show its
appreciation to those who are the true reasons for its success. Furthermore,
the group wishes to encourage its employees to provide their clients with
innovative, creative, and high-performance solutions. The group also wants to
encourage its employees to work towards growth, both by winning new business
and by consolidating long-term margins in order to preserve the culture and
independence of Publicis Groupe.
– Acquisitions in the 1st quarter 2009
In early April, Publicis Groupe acquired Nemos, a leading Swiss agency in
interactive communication. Founded in 2002 and based in
of the top agencies in multimedia and flash programming. With a team of ten
digital experts, Nemos counts Carlsberg, Movenpick and Condor Films among its
clients.
This acquisition is yet another demonstration of Publicis Groupe’s
determination to continue to enrich its digital offer through targeted
acquisitions in the sector.
IV. Outlook
The most recent ZenithOptimedia forecasts show a decline in worldwide
advertising spending of 6.9% hurting analog media while digital continues to
grow.
These latest forecasts should be considered in the context of forecasts
made at the end of last year, which estimated that advertising spending
worldwide would show negative growth of -0.2%. These numbers reflect the
unprecedented economic slowdown worldwide. Other market indicators, while
slightly less negative, deliver the same message.
In this context, Publicis Groupe, strengthened by its strategic choices,
is intensely focused on cost management with the constant concern of
protecting its margins and financial health.
The relevance of the Publicis Groupe offer and the strength and energy of
its teams around the world are attested to by new business of
billion
Next Shareholders’ Meeting:
About Publicis Groupe
Publicis Groupe (Euronext Paris: FR0000130577) is the world’s fourth
largest communications group. In addition, it is ranked as the world’s second
largest media agency, and is a global leader in digital and healthcare
communications. With activities spanning 104 countries on five continents,
the Groupe employs approximately 45,000 professionals. Publicis Groupe offers
local and international clients a complete range of advertising services
through three global advertising networks,
Saatchi, and two multi-hub networks, Fallon and 49%-owned Bartle Bogle
Hegarty. Media consultancy and buying is offered through two worldwide
networks, Starcom MediaVest Group and ZenithOptimedia; and interactive and
digital marketing led by Digitas. Publicis Groupe recently launched VivaKi to
leverage the combined scale of the autonomous operations of Digitas, Starcom
MediaVest Group, Denuo and ZenithOptimedia to develop new services, tools,
and next generation digital platforms. Publicis Groupe’s Specialized Agencies
and Marketing Services offer healthcare communications, corporate and
financial communications, sustainability communications, shopper marketing,
public relations, CRM and direct marketing, event and sports marketing, and
multicultural communications.
Web site: http://www.publicisgroupe.com
This presentation contains forward-looking statements. The use of the
words “aim(s),” “expect(s),” “feel(s),” “will,” “may,” “believe(s),”
“anticipate(s)” and similar expressions in this press release are intended to
identify those statements as forward looking. Forward-looking statements are
subject to risks and uncertainties that could cause actual results to differ
materially from those projected. You should not place undue reliance on these
forward-looking statements, which speak only as of the date of this press
release. Other than in connection with applicable securities laws, Publicis
Groupe undertakes no obligation to publish revised forward-looking statements
to reflect events or circumstances after the date of this press release or to
reflect the occurrence of unanticipated events. Publicis Groupe urges you to
review and consider the various disclosures it made concerning the factors
that may affect its business carefully, including the disclosures made to the
French financial authority (AMF).
APPENDIX
1ST QUARTER 2009 NEW BUSINESS
MAIN GAINS
Leo Burnett
Caltax petroleum products (Australia), Carrefour (Colombia), MCYS
Government Social Awareness (Singapore), MillerCoors (US), Turkcell
telecommunications (Turkey), Efes beer (Russia), Wella tone-P&G (Russia),
Falabella department store (Colombia), TVO television station (Canada),
Alfa telecommunications (Lebanon), Peroni, Molson, Mil.B beer (US).
Publicis
Alitalia (Italy), Carrefour (France/International), Procter & Gamble
Crest (UK), Vichy (UK), Wrigley (China), Zurich Connect (Switzerland),
Century 21 (France).
Saatchi & Saatchi
BingoLotto (UK), House of Travel (New Zealand), Invalidity Insurance
(Switzerland), LMG International car insurance (Thailand), NZ Defence
Force (New Zealand), Panasonic (Indonesia), RTA/Dubai Metro Launch
(United Arab Emirates), Suning appliances (China), Tsingtao (China),
Kosovo Ministry of Finance, Midea appliances (Chine).
Starcom MediaVest Group :
Alfa telecommunications (Lebanon), Capital One (UK), Cerveceria Nacional
(Panama), Heinz (Mexico), Honda (Spain), Kraft Foods (United Arab
Emirates), Metro Group (Poland), PTC telecommunications (Poland), PZU
financial services (Poland), Schering Plough Claritin (Hungary), CNAMTS
health insurance (France), Supermercados Plaza's (Venezuela), Bupa
International health insurance (UK), British Gas (UK), Comcast (US).
ZenithOptimedia :
Al-Bandar Group multibrand store (Saudi Arabia), Nestle (The
Netherlands), Si.mobil Vodafone (Slovenia), Jenny Craig (US), Ubank
(Australia), Jamena Gas Networks (Australia), China Mobile (China),
T38/40 slimming product (Portugal), MTV (UK), Panasonic (Indonesia),
Turismo de Valencia (Spain), Haberturk press (Turkey), BA airline
(Digital) (UK), Kang Yuan pharmaceuticals (China), Parques Reunidos
theme park (Spain), sanofi-aventis (Ukraine).
Publicis Healthcare Communications Group (PHCG) :
sanofi-aventis Aplenzin anti-depressant (US), Biogen-Idec neurological
(US).
Publicis Consultants
Biscuit LeClerc (US), Carrefour (France), City of The Hague (The
Netherlands), Diageo (UK), FIMF online banking (Germany), Lactalis dairy
products (Italy), Ministry of Agriculture (The Netherlands), Ministry of
Economy, Industry and Employment (France), Roman Meal (US), Sanofi
Aventis (Germany).
Fallon
The Auteurs (UK).
Digitas:
LVMH, I Discovery education (India), Abbott pharmaceuticals (US), GE
Healthcare (US), Carrefour (France), SAFRAN (France), Nissan (Europe),
Total (France).
Q1 2009 PRESS RELEASES:
01/08/09 Mathias Emmerich is appointed Senior Vice President of Publicis
Groupe
01/14/09 Philippe Lentschener to leave Publicis Groupe
02/04/09 Isabelle Simon joins Publicis Groupe as Senior Vice President
02/11/09 2008 Annual Results
02/20/09 Results of the standing purchase offer for holders of OCEANEs
maturing on January 18, 2018
03/11/09 Publicis Groupe involves its employees in group growth
03/24/09 136 Publicis key executives invest heavily in the group
04/15/09 Publicis Groupe pursues its global digital expansion with the
acquisition of Nemos, Swiss leader in multimedia and flash
programming
04/16/09 Publicis Groupe wins Hewlett-Packard Personal Systems Group
pan-European advertising and digital communications
04/23/09 Reference Document (financial statements) made available
For further information: http://www.publicisgroupe.com
SOURCE Publicis Groupe Services