Publicis reports solid 2007 results despite economy
Despite the uncertain state of the global economy, Publicis Groupe reported a 6.5% increase in revenue from 2006 to 2007 in its annual results report released on February 14.
Publicis Groupe is the parent company of Digitas, Publicis Dialog, Publicis Modem and Arc Worldwide, among hundreds of other agencies in 104 countries around the world.
In a statement, Maurice Levy, chairman and CEO of Publicis Groupe, said that the group had reached its targets for 2008. The only disappointment, he said. was the 3.1% increase in organic revenue growth, which was due to difficulties in the pharmaceutical industry. Activities outside this sector grew by 4.3%.
According to the report, North America and Europe saw the smallest increase in organic growth at 1.7%. In contrast, the Middle East and Africa saw the greatest organic growth at 11.1%.
That report stated that in 2007 a “key event” for the group was the acquisition of the Boston-based Digitas. However, Digitas performed “somewhat below” the group's average, the report stated. The acquisition also resulted in a “significant integration” cost, the company said.
According to the report, new business for Digitas in 2007 included the Miller Brewing Company, Samsung and Sara Lee. A request for specific annual results for Digitas was not returned by press time.
In the coming year, the Publicis Groupe indicated that growth is a “top priority.” In particular, the group said it is focused on development in digital communication and emerging markets. In 2007, marketing services and digital represented 36% of the group's total revenue, up from 23% in 2004, according to the report.