CSFB Predicts Negative Year for French Ad Giants

07 November 2002

Analysts at the London unit of investment bank Credit Suisse First Boston are at it again, second-guessing next week’s quarterly results from Paris-headquartered global agency holding companies Havas and Publicis Groupe

In a note sent Tuesday to Credit Suisse clients the bank’s clairvoyants predict Havas’ Q3 revenues will be around €450 million ($448.28m; £287.73m) – well past the point of no return within CSFB’s previously estimated range of €424m-€466m.

The Canary Wharf Cassandras then fixed their sights on Publicis which, they opine, will post income of €590m against their earlier range estimate of €580m-€616m.

To quote the CSFB note: “We expect no imminent recovery in revenue run-rates for advertising agencies, with organic declines into the fourth quarter and relatively flat market growth in 2003.”

CSFB, it will be remembered, was earlier this year ordered by the New York state attorney’s office to disclose documents that could reveal possible conflicts of interest between analysts and investment bankers [WAMN:10-Apr-02].

The bank also played a central role in the Enron scandal, creating the controversial partnerships used by the disgraced company to hold billions of dollars of unprofitable assets that eventually contributed to its bankruptcy.

Data sourced from: BrandRepublic (UK); additional content by WARC staff