PARIS: Publicis Groupe, the world's fourth largest agency holding company, on Friday reported slower third quarter growth with like-for-like revenues increasing by 2.6% to €1.01billion ($129.1bn; £676.2m). Nonetheless a marked improvement on the quarter ended June 30 when growth slowed to just 0.3% [WARC News: 12-Aug-06].
Q3 organic growth in North America languished at 0.6% while Middle Eastern and African revenues fell by 4.4%. Elsewhere on the globe, growth was slightly more robust with Europe delivering 4.9%, Latin America 3.9% and Asia Pacific 3.1%.
Groupwide, new business won during the quarter reached a net $1.2 billion, bringing the total for the first nine months of the year to $2.8 billion.
Major new US accounts signed in Q3 were JC Penney (advertising) and Wal-Mart (instore marketing); while global wins included Sony Ericsson (advertising). In Europe and Asia gains included an extension of collaboration with Citibank.
According to Publicis chairman/ceo Maurice Lévy: "The dip in third-quarter growth has two contributing factors: the winding down of work on some accounts [announced several month back] and the cancellation of certain campaigns during the summer.
"We have experienced similar situations in the past and their impact has always been limited. We believe this to be the case again now." He also predicted that "full year organic growth will be greater than or equal to 5%".
Philippe Lentschener, formerly vp of European operations at the group's Saatchi & Saatchi network, becomes chairman/ceo of Publicis in France; while at Publicis Counseil Arthur Sadoun joins as ceo and Valerie Henaff as managing director. Both previously held senior posts at TBWA in Paris.
The new trio fill the vacuum created by the defections of Publicis Counseil chairman Christophe Lambert and creative directors Fred Raillard and Farid Mokart [WARC News: 11-Oct-06] .
The decampers will launch a new shop early in 2007, shyly named Fred/Farid/Lambert and backed by financier and Havas chairman Vincent Bolloré - who clearly enjoys a spot of mischief almost as much as amassing euros.
Data sourced from Publicis Groupe; additional content by WARC staff