Publicis sees revenues slide and “slow recovery”
Publicis Groupe, owner of Starcom and Saatchi & Saatchi, has seen revenues dip 6.6% in the first half of the year but says there will be “slow recovery” from September.
The global marketing services group says organic revenues dipped to €2.2bn in six months to 30 June, hit by the bankruptcy of client General Motors in the US and the global recession.
The revenue slide affected net profit, which dropped 13% to €167m over last year.
Organic revenues dropped faster in the three months to the end of June, down 8.6% to €1.13bn revenues.
The group forecasts its revenue low for the year will be in July or August with a “slow recovery” from September. However, positive growth will not return until the middle of next year, it says.
Maurice Lévy, chairman and chief executive office, claims the company’s emerging markets and digital strategy as well as the “spectacular turnaround” in its healthcare business provides “adequate grounds for cautious optimism and the confidence that we can achieve all of our short-term goals”.
Publicis downgraded its exposure to losses from GM from £48.6m to £7.8m this week after the US carmaker emerged out of Chapter 11 bankruptcy to create a new company.
