Publicis Groupe Services: September 30, 2009 Revenue
PARIS, October 27 /PRNewswire-FirstCall/ --
First 9 months of 2009:
- Revenue: EUR 3.256 billion
- Revenue growth (as published): -2.3%
- Organic growth: -6.9%
- Net New Business: USD 4.8 billion
Q3 2009:
- Revenue: EUR 1.047 billion
- Revenue growth (as published): -5.3%
- Organic growth: -7.4%
“As announced, the advertising market reached its lowest point during
last summer. After a fall superior to 13% at the end of June, forecasts now
show a decrease by an average 10% for the full year.
During the second quarter, revenue for Publicis Groupe showed a regular
decrease, exceeding a negative 10% in June. As previously predicted, July,
August and September show improvement. Therefore, 3rd quarter posts an
organic growth negative by 7.4% when it was negative by 8.6% for the second
quarter.
New Business has been particularly active during the first nine months
and Publicis Groupe continues to be ranked first with net wins totalling
close to
Organic growth performances exceeding our peers’ and market share gains:
this is the result of our teams’ excellent performances backed by an offer
well adapted to the needs of our clients, particularly in digital. As for
digital, we have further strengthened our operations through the acquisition
of Razorfish which is being integrated according to our plans and which
should be EPS accretive starting as soon as in 2011.
In 2010, our share in digital should exceed 25% of our revenue. The
advertising market is starting its recovery which will be slow and
progressive. First positive growth numbers should be established during the
second half of 2010. Publicis Groupe should continue to outperform the
market.”
3rd quarter of 2009
– 3rd quarter 2009 business activity
As expected, the third quarter improved compared to the second quarter
2009, the lowest point of the market having probably been hit during the
summer. For Publicis Groupe the bottom was reached in June. One can assume
that the regular deterioration of the market has stopped and that a slow and
progressive recovery is under way.
– Revenue in the 3rd quarter of 2009
Consolidated revenue in the third quarter of 2009 was
down 5.3% compared to the third quarter of 2008, while organic growth
decreased by 7.4%.
Breakdown of 3rd quarter revenue by geographic area
(in millions of Revenue Organic Growth
euros)
Q3 2009 Q3 2008 2009 vs 2008
Europe 359 411 -9.5%
North America 488 481 -5.3%
Asia-Pacific 114 124 -12.4%
Latin America 58 62 -3.1%
Africa & Middle
East 28 27 -0.2%
Total 1,047 1,105 -7.4%
good performance of Publicis Worldwide in
agencies in
activities in the
numbers.
communications partially offset the decline in all other areas. A decrease of
organic growth of 5.3% for
contrasted situation with on the one hand, some mature economies severely
hit, and on the other hand, China remaining promising.
Saatchi & Saatchi in
extent and revenue, thanks to
growth of VivaKi remained stable.
Publicis Groupe at
– Revenue at
Consolidated revenue in the first nine months of 2009 was
euro
PHCG (Healthcare activities) showed improvement, almost stable compared
to the previous year thanks to PMD (Personal Message Delivery). Events and
Public Relations show a very severe decline. A reorganization program has
been initiated to ensure the relaunch of these activities as soon as the
market takes off again.
With the advertising market contracting by roughly 13% according to
current estimates, organic growth contraction for Publicis Groupe was limited
to 6.9%.This figure is attributable to the overall economic environment, was
amplified by the Chapter 11 process at General Motors. Decline was limited
thanks to the 5.5% organic growth achieved in digital communications.
- Revenue breakdown by geographic area at September 30, 2009,
year-on-year:
(in millions of Revenue Organic Growth
euros)
September 30, September 30, 2009 vs 2008
2009 2008
Europe 1,096 1,284 -10.9%
North America 1,549 1,423 -4.2%
Asia-Pacific 352 367 -9.6%
Latin America 167 174 -0.3%
Africa & Middle 92 84 +0.3%
East
Total 3,256 3,332 -6.9%
It should be emphasized that in the first nine months of 2009, digital
communications accounted for 21.3% of Groupe’s consolidated revenue, up from
18.5% in the prior-year period (at 2009 exchange rate). Likewise, emerging
markets generated 22.1% of total revenue in the first nine months, compared
with 21.7% for the same period of 2008 (at 2009 exchange rate).
– Highlights in the first nine months of the year
– New Business:
New Business at
remain very satisfactory, Publicis Groupe being ranked number one worldwide
by Nomura.
This amount, net of account losses, compares with the
reported in the first nine months of 2008.
In the third quarter alone the following wins are worth noting:
ABInbev-Becks (
Cadbury (U.K.), Carrefour (
Kerry Foods (U.K.), RBS (
– External growth and strategic initiatives
Several major strategic initiatives took place during the first half of
the year. Chief among them were the cooperation agreements signed with
Microsoft on
second largest interactive marketing agency and a Microsoft subsidiary. The
Razorfish transaction closed on
that date. The total consideration for the transaction amounted to
million euros
With this acquisition, Publicis Groupe strengthens its leading position in
digital communications, gains additional digital capabilities and enriches
the Group’s portfolio with blue chip clients. The integration process is
rolling out following a precise plan, should bring
savings making the acquisition accretive as of 2011.
– Financial situation at
At
decrease year-on-year.
Average net debt for the first nine months of 2009 is
At comparable exchange rates, net debt stands
at
At
with
facilities).
OUTLOOK
Outlook
Taking into account the sharp decrease of the advertising market, numbers
booked by Publicis Groupe represent a good relative performance. The Groupe’s
organic growth in the 3rd quarter signals the end of the continuous
deterioration that has been observed month after month since the summer of
2008.
Although overall visibility is low and there is still considerable
uncertainty about the state of the economy, Publicis Groupe confirms a
gradual recovery with, however, a few more negative quarters and a return to
growth likely to occur around the middle of 2010. During this upcoming
period, Publicis Groupe anticipates a better performance than the market and
will maintain its cost reduction actions.
Publicis Groupe’s financial position remains very satisfactory, with
strong liquidity and an expected decrease of the average net debt.
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 43,000 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 and Razorfish. Publicis Groupe recently
launched VivaKi to leverage the combined scale of the autonomous operations
of Digitas, Razorfish, 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
“Certain statements in this report, apart from historical facts, may
constitute forward-looking statements or unaudited financial forecasts. These
forward-looking statements involve certain risks and uncertainties and may
prove to be materially different from actual future results. All
forward-looking statements are expectations as of the date of this report,
and Publicis Groupe undertakes no obligation to update them for new events or
for any other reason except as required by law. Publicis Groupe encourages
you to study carefully all information concerning factors that may impact its
business, as described in the Reference Document filed with the French market
authority (Autorite des Marches Financiers).”
Appendix
New Business 2009
Key New Business Wins
Digitas
Total (
Carrefour (
Fallon
The Auteurs (
Foods (
(UK), Oxfam International (UK), Comic Relief (UK), The BBC – Olympics 2012
Coverage (UK)
Caltex oil (
Awareness (
(
television channel (
(
Herbapol food (
Zeebo Toys (
(
Publicis Worldwide
Alitalia (
Crest (
Connect (
Pernod-Ricard (
Beck’s (
Chidren’s workforce Development Council (UK)
Publicis Consultants
Biscuit LeClerc (
(
(
(
Meal (
Mead Johnson (
Interior (
Publicis Healthcare Communications Group (PHCG)
Sanofi-aventis (Aplenzin-United States), Biogen-Idec neurology (
States
Saatchi & Saatchi
BingoLotto (
Insurance (
Panasonic (
household electrical appliances (China), Tsingtao beer (China), Midea
household electrical appliances (China), Cadbury Dairy Milk (
Zealand
States
Amway-Nutrilite (China), Maxima (
(China),
Dry (
Starcom MediaVest Group
Alfa telecommunications (
Nacional (
Emirates
financial services (
health insurance (
International health insurance (
Kingdom
Foods / Dairy Farmers (
(
Baguepi food (
(
(
The KaPlan Thaler Group
Wendy’s (
ZenithOptimedia
Al-Bandar Group multibrand shop (
Si.mobil Vodafone (
Jamena Gas Networks (
product (
Kingdom
amusement parks (Spain), Sanofi-aventis (
public institute for loans and financing (Spain), Tourism of Cataluna
(Spain), 118118 (
components (China), Videocon Group telecommunications (
Community Development, Youth and Sports (
(
(
supermarkets (Spain), Saxo Bank (
Perfetti Van Melle confectioner (China),
Hyundai (
Emirates
tourism, and commerce (Spain), Dairy Queen food (
Choice (
Gamina digital (
Pringle of Scotland Clothing (International),
WingTai Fashion (
2009 Press Releases
01/08/09 Mathias Emmerich is appointed Senior Vice President
of Publicis Groupe
01/14/09 Philippe Lentschener leaves Publicis Groupe
02/04/09 Isabelle Simon joins Publicis Groupe as Senior Vice
President
02/11/09 Annual results 2008
02/12/09 Publicis announces that it has repurchased a portion
of its OCEANEs maturing on January, 18, 2018, and is
offering to purchase the remaining OCEANEs for a price of
EUR42.5724 per bond
02/20/09 Results of the standing purchase offer 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 strongly in the
Group
04/15/09 Publicis Groupe pursues its global digital expansion,
acquires Nemos, Swiss leader in multimedia and flash
programming
04/16/09 Publicis Groupe won HP personal systems group
pan-European advertising and digital communications
04/30/09 Eric Giuily leaves Publicis Consultants | Worldwide
05/11/09 Appointments at Publicis Groupe
05/19/09 Publicis Groupe acquires the Publicis MARC Group,
strengthens holistic offer in the Balkan region
05/20/09 Publicis Groupe grants 50 free shares to each
employee in France
06/04/09 Publicis Groupe - General Motors
06/09/09 Publicis Groupe annual general shareholders' meeting,
dividend set at 0.60 euros per share
06/16/09 Publicis Groupe announces the offering of convertible
bonds
06/16/09 Publicis Groupe issue of convertible bonds (OCEANEs)
in the amount of 625 million euros - Final terms for the
OCEANE 2014
06/17/09 Publics Groupe issue of convertible bonds (OCEANEs)
in the amount of 625 million euros - Granting of the AMF
visa
06/19/09 Publics Groupe issue of convertible bonds (OCEANEs) -
Exercise of the over-allotment (greenshoe) option for the
issue of approximately 625 million euros increased to
approximately 719 million euros
06/25/09 Microsoft Corporation and Publicis Groupe announce
broad strategic agreement
06/30/09 Publicis Groupe, second most awarded group in Cannes,
with a total of 101 Lions
07/09/09 Publicis Groupe to receive the 2009 Global Equity
Organization award for the most innovative and creative
plan design for its employee stock plan
13/07/09 Publication date for half-year results
22/07/09 GM
23/07/09 Half-year 2009 results
09/08/09 Publicis Groupe to Acquire Razorfish from Microsoft
Corporation
01/09/09 Publicis Groupe Announces Acquisition Agreement of
Unilever C.R.M. Program "Pour Tout Vous Dire"
03/09/09 Women's Forum for Economy and Society Joins Publicis
Groupe
22/09/09 Publicis Groupe Phonevalley Collaborates With
Microsoft Mobile Advertising on Custom Mobile
14/10/09 Acquisition of Razorfish Closed
For further information: http://www.publicisgroupe.com
SOURCE Publicis Groupe Services
