Publicis has raised its expectations for 2010 after having exceeded expectations in the first half to gain the favor of budgets and increased spending of its customers.
The third group in terms of global advertising revenues for 2010 it now expects organic growth above the rate of 3.5% estimated for the global market through its subsidiary ZenithOptimedia.It previously expected growth above 3%.
The Chief Executive Maurice Levy also explained to reporters that Publicis hopes to exceed 2010 operating margin of 15% in 2009, when it previously expected to stabilize at this level.
Publicis has a revenue of 2,538,000 euros in the first half, with organic growth of 5.3%.
The 12 analysts polled by Reuters were expecting the writing to an average of 2,440 million euros, with organic growth of 4.3%.
On second quarter alone, the group posted organic growth of 7.1% against 6% for the U.S. Omnicom, the world.
"The group's growth was fueled by gains in the 2009 budget as well as increases in advertising expenditure of major customers," said Publicis in a statement, echoing the findings of Omnicom.
Publicis has earned $ 2.1 billion in net earnings of budgets in the first half, including contracts for Nokia or Goodyear.
"Publicis has strengthened during the crisis," said Maurice Levy, saying "pleasantly surprised" by the dynamism of the group's business in the first half.
"There is reason to believe that the growth that we know and that is greater than the market has good reason to continue beyond this year, it is sustainable," he added.
RISKS IN EUROPE AND THE UNITED STATES
ZenithOptimedia noted last week by 2.2% to 3.5% its forecast for global market growth in 2010 given the surprising strength in spending by advertisers in the U.S. and Europe in the first half.
Maurice Levy has shown, however, prudent for these two regions because of the possible impact of austerity plans in Europe and the downside risks to the United States.
"There are indications that the market may slow, so I am mindful.Even in this slowing market, Publicis will not only better than the market, but better than what we've announced so far, "he said.
Publicis has not so far found of slowing the momentum in North America, where he recorded organic growth of 6.6% in the first half.
In Europe, where the rate was twice as high, it has identified growth markets, "healthier", like France and the United Kingdom, do not benefit only favorable comparative or specific operations.
Maurice Levy noted that sectors like FMCG, telecom distribution and remained active, while the group was gaining market share in the pharmacy.The financial sector and restart the car shows positive signs, "he added.
Publicis has an operating margin of 369 million euros in the first half, with a rate up 1.5 points year on year to 14.5%.Analysts had expected 326 million and 13.4% respectively.
The group hopes to reduce its margin in 2012-2013 from its peak of 16.7% in 2008 and then beyond.
Publicis now generates half its income in the digital and emerging high-growth, with a target of 60% within three to four years.
Maurice Levy said the group would stay on the lookout for acquisitions in these two areas – a development plan in China planned for the fall – but also in media buying or creative advertising agencies.