Publicis Groupe operating margins rise 9.3%

Publicis Groupe has reported a 9.3% increase in operating margins in its annual revenue for 2007 but its underlying growth has failed to meet expectations. However, the company says it has exceeded expectations for the period.

It says that the dip in underlying revenue was caused by a slowdown in its US healthcare division. Revenue rose by 6.5% to $6.8m (£3.45m) for the year, which is a 3% increase in organic growth.

The company, the world’s fourth biggest advertising group, says that marketing services, including direct marketing, and digital now account for 36% of revenue, up from 23% three years ago.

Maurice Levy (pictured), Publicis chief executive and chairman, says that the coming year presents some challenges due to the slowdown in the US economy but added that the Beijing Olympics offer some opportunities.