Publicis exceeds expectations in Q1 with the changes … – Boursorama

FIRST QUARTER BETTER THAN EXPECTED FOR PUBLICIS

by Gwénaëlle Barzic

PARIS (Reuters) – Publicis did on Tuesday reported a higher growth than its expectations and those of the market for the first quarter due to the positive impact of exchange rates and the contribution of the American Sapient bought in November.

The number three global advertising, which gives kick publications in the area, hopes to rebound in 2015 after a disastrous year in 2014 marked by the failure of his marriage plans with the US Omnicom and performance below those of its main competitors.

In the first three months of the year, its revenue was $ 2.1 billion, giving a organic growth of 0.9%. This reflects a slowdown from the 3.2% increase in the last three months of 2014 but is higher than market expectations. Analysts’ estimates ranged from -0.5% to + 0.5%.

On a reported basis, revenues have increased by 31.7%.

“We expect negative organic growth,” told reporters the CEO Maurice Levy who had several times emphasized the progressive nature of the expected recovery in 2015 with a start to the year that he feared winded.

“It’s not Peru (…). It is better than expected, it is encouraging for the whole year, “he added.

Publicis expects a gradual increase over the coming months with a second upper semester first.

For the full year 2015, the organic growth of the French group should be at least in line with the average for advertising agencies, expected at around 3% per ZenithOptimedia, a subsidiary of Publicis, Maurice Levy said.

“The priority this year is clearly organic growth and restart the machine,” said the leader of the advertising group that suffered last year challenges his agency Featured Razorfish digital and aborted merger project with Omnicom has cornered its teams several months.

In the first quarter, Publicis mainly benefited from its exposure to the dollar and the British pound, which had a positive impact 215 million on its income.

Publicis expects that changes in exchange he be positive until the end of the year after having strengthened with the acquisition of Sapient, its presence in North America where he generated 55% of its revenues in the first quarter.

Sapient, whose redemption was completed in early February, has also for the first time been integrated into Publicis accounts for the first quarter include a positive contribution acquisitions of € 274 million.

These two factors helped offset a lackluster performance in emerging countries, down 2.6% over the period, mainly penalized by the decline of 10 % of revenues in Russia and Brazil.

The activity in China remains sluggish (-1%), but Publicis expects to finish the year on a positive growth, said Maurice Levy.

The French rival Havas release its account on May 5 while the figures of world number WPP will be known on Thursday.

Asked about the status of preparations for his succession, Maurice Levy, who planned to step down at the General Meeting of the company in 2017, said that the search for a candidate “not begin until the latter part of 2016″.

The title had ended Monday night down 0.65% to 72.34 euros, giving a market capitalization of 16 billion euros. Since the beginning of the year, it was up 21%.

(Published by Matthieu Protard)

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