Publicis posts organic growth of 4.5 pc for second quarter

MUMBAI: Publicis Groupe which claims to be the world's fourth largest communications group, as well as a leader in media counsel and buying has announced that revenues in the second

quarter of 2004 were EUR 981 million compared with EUR 965 million for the same period last year. This marks an organic growth of 4.5 per cent.



North America and Asia were driven by continued strong growth in advertising outlays. Europe picked up further in the second quarter despite weaknesses in the Netherlands and in some Scandinavian markets. In Latin America, the robust recovery observed at the beginning of the year continued.

In the Asia-Pacific region, organic growth of 6.7 per cent was recorded. Latin America saw growth of 35.3 per cent. Publicis Groupe chairman and CEO Maurice Levy said, "Growth in all parts of the world and in all industries has been encouraging, and Publicis Groupe has taken advantage of this trend. Developments in the second quarter of this year were in line with our projections, including consolidation of growth in North America and Asia, and a slight rise in Europe.



"Organic growth at Publicis Groupe is up slightly, in keeping with our targets. We are continuing to win market share, building on existing momentum and attractiveness, as confirmed by our strong performance in new business."

Looking to the future he added, "The first indications for the market growth next year are that Europe should equal the US which will no longer be driven by the run-up to the presidential elections. Based on current forecasts, our growth objectives should remain firm."

In the second quarter, Publicis Groupe won new accounts representing a total $1.4 billion. Taking into account the loss of some accounts over the same period, net new business totalled $900 million. The largest single accounts lost during the quarter were Toys 'R' Us and Subway US in advertising, and Miramax in media buying.

One of the important accounts won was for media planning for Procter & Gamble in the US. Publicis Worldwide won several accounts including Lee Cooper in France, Fortis Bank in Belgium and Daewoo Consumer Electronics and Hyundai Card 'S' in South Korea.

The Starcom MediaVest Group which deals with media consultancy and media buying won the accounts of software major Oracle, Heinz Frozen Foods in the US, Kraft Foods in the UK and Sweden, Pizza Hut in the UK as well as Levi's in Italy.


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