Publicis Groupe's 2006 outlook favourable; awarded investment grade ratings

MUMBAI: Publicis Groupe has been awarded favourable investment-grade ratings by Standard & Poor's and also by Moody's, which indicate the Group's stable outlook.

These ratings are a new milestone for the Group, allowing it to further strengthen its financial structure. Publicis Groupe had announced in 2003 that it would seek investment ratings from the two leading international agencies, and in 2005 began the formal process of obtaining the ratings.


Publicis Groupe chairman and CEO Maurice Lévy said, "These ratings are an important step forward for our Group, demonstrating the two agencies’ recognition of the quality of our balance-sheet structure and of our management. This is also further confirmation of Publicis Groupe's stature as a Top Tier group. As was the case with our entry in the CAC 40 index in 2004, these investment-grade ratings entail new duties regarding financial policies. We will continue to tighten financial discipline at all levels, a discipline that has always been a foundation of our strength."



Publicis Groupe chief financial officer Jean-Michel Etienne added, "This success rewards years of unstinting efforts since the acquisition of Bcom3 to improve our financial structures and to optimise our financial and treasury management. While we now have additional financial leeway, we are also aware that our new status entails new obligations."



The net new business booked in 2005 should be close to $10 billion, maintaining Publicis Groupe's number-one position over the year as a whole. The group confirmed its target of organic growth exceeding six per cent for 2005 as a whole, with an improvement in operating margins.

The outlook for 2006 is very positive, considering both the potential of new business and some improvement in the European business environment also favoured to some extent by the Football World Cup in Germany.

Lévy concludes, "We look to 2006 with confidence in the conviction that our group is fully equipped to meet all of advertisers’ needs. Our holistic approach to communications allows us to make the most of shifts in marketing budgets from one media to another."

According to the targets for growth and operating margin confirmed under the International Financial Reporting Standard (IFRS), while the Publicis Groupe does not publish projections, but it reported on progress in reaching the targets it has set itself.

A company statement said that the ambitious goal of a 17 per cent operating margin for 2008 announced on 9 December, 2004 under French GAAP (Generally Accepted Accounting Principles) is clearly within reach. Under IFRS, the target is now 16.7 per cent for 2008.

Latest Reads
Levi's hands over media duties to OMD

MUMBAI: Following a comprehensive market review, Levi’s has appointed OMD India to handle its media duties from its Bengaluru office.

MAM Marketing MAM
Dentsu Webchutney to handle creative for Goomo

MUMBAI: Dentsu Webchutney, the digital agency from Dentsu Aegis network, has been assigned as the lead creative agency for, an omnichannel, travel-tech company that operates across consumer, corporate and B2B segments. The account will be managed by Dentsu Webchutney’s Mumbai office.

MAM Marketing MAM
Festival of Bharat to cast the spotlight on India

MUMBAI: History repeats itself but this time there’s a twist. A London-based investor and indophile is spellbound by India but he’s got better plans. Cory Bixler has co-founded a festival that celebrates and aims to promote India’s culture to the world - The Festival of Bharat (FoB).

MAM Media and Advertising Event Agencies
Britannia NutriChoice promotes healthy food choices

MUMBAI: Health is tough and requires a lot of sacrifice. This is the perception that deters most people from adopting a healthier lifestyle. In its new TVC campaign, Britannia NutriChoice Digestive puts forth a refreshing new point of view that when you start on your health journey, while the...

MAM Marketing MAM
Soho Square wins creative mandate for Medlife

MUMBAI: Soho Square Bangalore has won the creative mandate for MedLife, the healthcare app. The agency has been awarded the reins of the account in the aftermath of a competitive multi-agency pitch. Soho Square will now partner with MedLife on a journey to simplify healthcare by making the entire...

MAM Marketing MAM
Telangana govt & Oyo team up for hospitality development

The Telangana government and hospitality company Oyo have announced their intent to collaborate to develop the hospitality ecosystem in the state. Oyo’s new tech development centre was inaugurated by Telangana minister for IT, electronics and communications K Taraka Rama Rao.

MAM Marketing MAM
MullenLowe Media Mub comes to India as Lintas MediaHub

MUMBAI: MullenLowe Mediahub from MullenLowe Group has entered India and will operate as a division of MullenLowe Lintas Group’s omnichannel agency, PointNine Lintas. Lintas Mediahub is being launched as a full-service media offering for a digitised world.

MAM Marketing Brands
Harish Shriyan elevated as Omnicom Media Group CEO

MUMBAI: Omnicom Media Group India COO Harish Shriyan has been elevated as chief executive officer. In his latest capacity, Shriyan will now be in charge of the performance of the group’s four offices in the country and will drive the company’s expansion process to meet the demands of new growth.

MAM Marketing Brands
Nestle retains Zenith as AOR

MUMBAI: Nestlé India has retained Zenith as the AOR (agency of record) for its media business. Recently, Nestle also consolidated its nutrition digital marketing business with Zenith and DigitasLBi.

MAM Marketing Brands

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories