PARIS, October 20, 2011 /PRNewswire/ --
Q3 2011
(EUR million)
- Revenue 1,419
- Published growth +7.5%
- Organic growth +6.4%
At September 30, 2011 (first nine months)
(EUR million)
- Revenue 4,118
- Published growth +6.7%
- Organic growth +6.9%
- New Business (net) USD 4,1 billion
Maurice Lévy, Chairman and CEO of Publicis Groupe, declares:
"Our third quarter growth of +6.4% demonstrates the appeal of the Groupe and the effectiveness of our strategy. It may be useful to remind you that the benchmark for this growth was a 2010 third quarter that also saw a strong increase (+9.2%). I'd like to thank all our teams around the world for this superb performance.
We are well on the way to fulfilling our goals for the digital sector and emerging markets. In fact, digital exceeded our goal of 30% as early as the end of September. At 23.7%, our revenue from emerging countries is close to our 25% objective. These will continue to be our two strategic pillars for growth. We will be intensifying our efforts of development and investment, given the key interest of these sectors for our clients, our know-how and our Groupe. New business did well too, with several iconic wins.
Since July 2011, market forecasts have been adjusted downwards with every publication. Thus 2011 is now expected to see growth of 3.6%, when in July that growth was still forecasted at 4.1%. Much of the decrease may occur in the fourth quarter.
Despite the economic slowdown, which is now visible to all, and a basis for comparison that was exceptionally high (Publicis grew by 12.5% in the 4th quarter of 2010), we maintain our target of better than market growth for 2011 overall.
In a climate of economic difficulty and uncertainty linked to sovereign debt, we will redouble our efforts so as to achieve our objectives for 2011: higher than market growth and the highest operating margin in the market.
Forecasters confirm that market growth in 2012 should exceed 5% (5.3% according to ZenithOptimedia). The indicators that we currently have in hand suggest healthy growth for the year ahead. In terms of talent and assets, we have what it takes to succeed. There will be no lack of challenges, but we have every confidence in the capacity of our teams to overcome them, and in our strong strategic positioning."
***
Q3 2011
Revenue
The Groupe's consolidated revenue totaled 1,419 million euro in Q3 2011, a 7.5% increase on Q3 2010 (1,320 million).
Organic growth was +6.4% in the third quarter, a very strong performance on top of the 9.2% growth achieved in the corresponding period in 2010.
Breakdown of Q3 2011 revenue by geography
(EUR million) Revenue Organic growth Published growth
Q3 2011 Q3 2010 2011/2010 2011/2010
Europe 427 399 +6.5% +7.0%
North America 685 666 +5.5% +2.9%
Asia-Pacific 171 151 +7.6% +13.2%
Latin America 101 71 +13.1% +42.3%
Africa and
Middle East 34 33 +2.8% +3.0%
Total 1,419 1,320 +6.4% +7.5%
All regions posted growth.
- Europe achieved +6.5% particularly thanks to Germany and France which grew their revenue by approximately 10%.
- North America disclosed organic growth of +5.5% and the US continued to perform very well at +5.2%.
- With growth of +7.6%, performance in the Asia-Pacific was close to expectations. The Greater China region and India reached +10.1% and +10.4% respectively, and factoring out Australia and Japan, the region'sgrowth was +11.7%.
- Latin America continued to return strong organic growth of +13.1%.
At September 30, 2011
Publicis Groupe's consolidated revenue for the first nine months of fiscal 2011 was 4,118 million euro, i.e. an increase of 6.7% from 3,858 million for the corresponding period in 2010.
At September 30, 2011, organic growth stood at +6.9% compared with 6.6% at September 30, 2010.
The revenue breakdown is as follows: for the first time the SAMS (Specialized Agencies and Marketing Services), which include digital services, accounted for 50% of the Groupe's revenue (48% in 2010), while advertising generated 31% (33% in 2010), and media the remaining 19% (19% in 2010).
Digital accounted for 30.2% of total revenue during the nine-month period up to September 30, 2011 (up from 28.7% in 2010) and continues to be a major growth driver.
For the record, revenue was 1,286 million euro in Q1 2011 and 1,413 million in Q2 2011 (compared with 1,162 million and 1,376 million respectively for the corresponding periods in 2010). Organic growth stood at 6.5 and 7.6% respectively in Q1 and Q2 (compared with (3.1 and 7.1% respectively for the corresponding quarters in 2010).
Breakdown of revenue at September 30, 2011 (9 months) by geography
Published
(EUR million) Revenue Organic growth growth
Sep. 30, 2011 Sep. 30, 2010 2011/2010 2011/2010
Europe 1,322 1,205 +8.2% +9.7%
North America 1,957 1,923 +6.3% +1.8%
Asia-Pacific 480 436 +4.9% +10.1%
Latin America 257 197 +8.5% +30.5%
Africa and
Middle East 102 97 +7.0% +5.2%
Total 4,118 3,858 +6.9% +6.7%
High-growth countries generated 23.7% of total revenue (compared with 22.3% at September 30, 2010) and posted growth of 6.2%.
Main events during the first nine months of 2011
New Business: 4.1 billion dollars
Net new business remained highly satisfactory at 4.1 billion dollars.
In the third quarter alone, major new accounts awarded included:
Burger King (USA), C&A (Austria), Carlsberg (India), Esurance (USA), Ferrero (Europe, Turkey), Mars (Thailand, Philippines, Indonesia), McDonalds (Australia), Nescafé (World), Pizza Hut (USA).
External growth and strategic initiatives
External growth was very high during the first half-year. In particular, the Group's footprint in the UK in interactive communications and public relations (Chemistry, Airlock, Holler and Kittcat Nohr) increased significantly and its position in Brazil was also reinforced with the takeover of Talent and the acquisition of GP7. The acquisition of Rosetta also repositioned the Groupe's customer advisory services in digital services in the USA.
In Healthcare, the Group acquired Publicis Consulting in France and Watermelon in India bolstering its presence in this sector. Finally, in pursuance of its strategy announced a year ago of expanding in China, Publicis Groupe acquired Taiwan-based consulting firm ICL; Dreams, an agency operating in the healthcare sector in China and Genedigi, one of China's most renowned public relations firms.
Publicis Groupe's presence in Brazil was completed with the acquisition of DPZ in July, which brought the Groupe to the critical size it sought. Brazil is now the Group's sixth biggest market, in line with Brazil's ranking in world advertising.
High-potential New York agency Big Fuel, the only advertising agency entirely dedicated to the social media, was also bought in July 2011.
This was followed by the acquisition in September of Schwartz, a Boston PR agency with subsidiaries in Stockholm and London.
These deals reflect Publicis Group's ambitious growth strategy, which is aimed at reinforcing its positions in high-growth countries and consolidating its role as a major digital communications group.
Financial situation at September 30, 2011
At September 30, 2011, Publicis Groupe's net debt stood at 969 million euro, compared with 512 million at September 30, 2010. This includes 787 million (net of disposals) in respect of acquisitions made over the first nine months. Average net debt for the period was 401 million euro, i.e. 265 million less than at September 30, 2010.
At September 30, 2011, the Group had an available liquidity position of 3.1 billion euro (not including 231 million in uncommitted facilities).
Outlook
ZenithOptimedia's most recent forecasts have revised previous growth expectations downwards for most advertising markets in 2011, with the exception of China. According to the latest forecasts, growth in 2011, estimated at 4.1% in July, was revised to 3.6% in October. The adjustment may take place in the fourth quarter.
In this context, Publicis Groupe has intensified all measures aimed at reducing operating costs while ensuring that investment in talent and technology remains at the required level. These combined endeavors will enable the Group to accelerate its growth and further improve its profitability in the future.
In this period of in-depth and on-going transformation of the Group, Publicis Groupe confirms its guidance of growth that will outperform the advertising market in 2011.
This presentation contains forward-looking statements. The use of the words "aim(s)," "expect(s)," "feel(s)," "will," "may," "believe(s)," "anticipate(s)" and similar expressions in this presentation are intended to identify those statements as forward-looking. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Other than as required by applicable securities laws, Publicis Groupe undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect the occurrence of unanticipated events. Publicis Groupe urges you to review and consider carefully the various disclosures it has made concerning the factors that may affect its business, including the disclosures made under the caption "Risk Factors" in the 2010 Registration Document filed with the French financial markets authority (AMF).
About Publicis Groupe
Publicis Groupe [Euronext Paris FR0000130577, part of the CAC 40 index] is the third largest communications group in the world, offering the full range of services and skills: digital and traditional advertising, public affairs and events, media buying and specialized communication. Its major networks are Leo Burnett, MSLGROUP, PHCG (Publicis Healthcare Communications Group), Publicis Worldwide, Rosetta and Saatchi & Saatchi. VivaKi, the Groupe's media and digital accelerator, includes Digitas, Razorfish, Starcom MediaVest Group and ZenithOptimedia. Present in 104 countries, the Groupe employs 50,000 professionals.
Web: http://www.publicisgroupe.com | Twitter:@PublicisGroupe | Facebook: http://www.facebook.com/publicisgroupe
Annexes
New Business
September 30, 2011 - 9 months
Main accounts awarded
Leo Burnett
MAS Institute of Management & Technology (India); Micro Cars Limited (India); POM Wonderful (Japan); Triumph International (Japan); LSH Holding (Kuwaït); LibanPost (Lebanon); Petronas Dagangan (Malaysia); Universidad Mexicana (Mexico); McDonald's (UK and USA); Flight Network (Canada); IKEA (Canada); Samsung (Hong Kong); Sun Hung Kai Properties (Hong Kong); Six senses resorts & spas (India); Sinar Mas (Indonesia); Indofood (Indonesia); Allergan (Mexico); Airphil Express (Philippines); Yahoo (Singapore); Dorchester Hotel Collection (UK); Wanke Shenyang (China); Costa Croisieres (France); Stepper Eyewear (Hong Kong); Beit Misk (Lebanon); Red Cross (UK); Giant Bicycles (Australia); DHL (Colombia); APM Terminals (Costa Rica); Sri Lanka Telecom (India); Petronas (Malaysia); Coca Cola (Colombia); Samsung (India); Indofood (Indonesia); OB Beer (Korea); 22nd Philippine Advertising Congress (Philippines); Pernod Ricard (Thailand); Property Perfect (Thailand); Ikea (Thailand); Wanke Shenyang (China); Temposcan Pharmaceuticals (Indonesia); Parrot (Japan); Petronas Group (Malaysia); Wijeya Newspapers (Sri Lanka); Chevrolet (Thailand); Nongpho Dairy Co-operative Ltd. (Thailand); Coca-Cola (Costa Rica, India); Wikimedia (Germany); Lankem Ceylon Ltd (India); Tokyo Cement (India); Auro Holdings (India); Samsung (Indonesia); Ilusión (Mexico); Walmart (Mexico); Asia Motor Works (India); Gumtree (Australia); Pakistan International Airlines (Pakistan) ; Pakistan State Oil (Pakistan); TaxSpanner (India); Qtel (Qatar); Sinar MasIMSIG (Indonesia); E.Land Group (Korea); Olabuenaga Fonatur (Mexico); Mega Bangna (Thailand); Fox TV Channel (Turkey); Studio Moderna (Turkey); Fifth Third (USA); Masan (Vietnam); Jon One Men's Clothing (China); Caribbean Export (Regional Trade and Investment Promotion Agency) (Dominician Republic); Terna Energy (Renewable Energy Source Production) (Italy); Universal Robina Corporation (Philippines); People's Leasing Company (Sri Lanka); Cargils Ceylon PLC (Sri Lanka); Thai Yamaha Motor Co., Ltd. (Thailand); Conwood Co., Ltd. (Construction Materials) (Thailand); AIS (Telco) (Thailand); Electricity Generating Authority of Thailand (Thailand); Bangkok Insurance (Thailand); TRUenergy (Australia); McDonal'ds (Australia); Schincariol Group (Brazil); Disney (Brazil); GlaxoSmithKline (Japan); Esurance (USA); Sing Tel (Singapore); Great Eastern Life Insurance (Singapore); Freewiew (Turkey, UK); Shiv Nadar Education Trust (India); GCL Energy (China); Langham Luxury Hotels (China); Warrnambool Cheese and Butter (Australia); Pfizer Taiwan (Taiwan).
MSLGroup
TAQA (UK and Dubai); Ancestry.com (USA); AQMD-Incremental (USA); AstraZeneca (China); ADP (China); Insinkerator (China); Star TV (India); Bosch (Germany); Sécurité Routière (France).
Publicis Worldwide
Fresco/Vogliazzi (Italy); Heineken (Italy); Bernina International (Switzerland); Università Bocconi (Italy); Ministro del Lavoro (Italy), Jùpiter (Spain); Merino/Merinolam-Vegit (India); LG/global digital business (World); PMU (France); RATP (France); Fnac (France); Aéroports de Paris (France); Cortal Consors (France); Institut Géographique National (France); Amway/Nutrilite (China); Nestlé Infant Nutrition/Nestlé Mio (Italy); Jigsaw (UK); Betboo (Brazil); Tourism Ireland (UK); Cascades Groupe Tissu (Canada); SCA-Tena (Hong Kong); Duracell (Hong Kong); Sara Lee/Ball Park (USA); Assurance Maladie (France); Les Vins de Bordeaux (France); Angel Broking (India); Haribo/Dragibus (France); L'Oréal (Czech Republic); Groupe SEB (Czech Republic); Cici's Pizza (USA) ; Red Lion (Brazil); AKTV (Philippines); HP (Czech Republic); Nestlé (Thailand); Globe (Philippines); P&G (Philippines); Honda (Philippines); Axa (Czech Republic); Soda Club (Belgium); Weight Watchers (Belgium); ANIA (Italy); Jequiti Cosmetics (Brazil); Nestlé Infant Nutrition (Mexico); Nescafé (World); Ferrero (Italie, Espagne, Portugal, Fance, Belgique, Pays-Bas, Turquie, Grèce).
PHCG
Somaxon (USA); United Therapeutics (USA); Savient (USA).
Razorfish
Starwood (USA); Disney (USA); Microsoft (USA); Nike Social (USa); Unilever Surf (US); Unilever Dove (USA).
Saatchi & Saatchi
Lenovo Group Limited (USA); Piaget (France); Assogestioni (Italy); Kavli (Sweden); UNIMED RJ (Brazil); Hanaka kyselka (Czech Republic); Toyota-Aygo, SUV range and Yaris (Italy); Swissôtel (Switzerland); Club Brugge (Belgium); Exellent (Belgium); Vlerick (Belgium); DG Sanco/EC anti smoking (Belgium); Haagen-Dazs (Belgium); Fostplus (Belgium) ; Wonderful Pistachios (UK, Germany); Swisscom (Switzerland); Skoda Auto India (India); OLX India (India); Bharat Petroleum (India); Mando (Korea); Handelsbanken (Sweden); Avis (Germany); WeightWatchers (UK); ARD-Werbung Sales & Services (Germany); Kraft Foods/Milka (Argentina); Subway (Mexico); Paso Interlomas (Mexico); Enel (Italy); Marktplaats.nl (Netherlands); flydubai (UAE); Carlsberg (India); Kingdee (China); Samsonite Europe (Belgium); EUROPA Versicherungen (Germany); Agthia/Yoplait (UAE); Wave Infratech (India); CCA/Pump (New Zealand); Union Investment (Germany); Lenovo (Brazil).
Starcom MediaVest Group
Tourism Malaysia (Malaysia); Heineken (Czech Republic); Dairy Queen (USA); China Telecom (China); SATS (Singapore); Singapore Grand Prix (Singapore), Uniqlo (Singapore); Nyhavn Rejser (Denmark); Full Tilt Poker (Italy); BZWBK (Poland); Lotos (Poland); Upstream (United Arab Emirates); Dreams (UK); YPF (Argentina); Microsoft (USA); Disney (USA); Disney Pan regional TV Cable (Argentina); hotels.com-Expedia (China); Regione Lombardia (Italy); I mobile (Thailand); Kraft Foods (United Arab Emirates); Lactel (United Arab Emirates); MAC (GM dealer) (United Arab Emirates); ZAFCO (United Arab Emirates); Dyson (Canada); Aeromexico (Chile); Spin Palace (Chile); Future Brands (India); VIA (India); Mars (Philippines, Indonesia, Thailand); Orang Tua Group (Indonesia); Dixons (Ireland); Comcast/NBCU (Studios) (USA - Miami); Boiron Laboratories (Poland); Czerwona Torebka (Poland); Burger King (USA); NBCU/Comcast (Theme Parks) (USA).
ZenithOptimedia
Rioja Wines (Spain); JPMorgan Chase (USA); Wallmart (China); ABB (China); Motorcorp (New Zealand); United Overseas Bank (Singapore); Emporiki Bank (Greece); Banco Financiero y de Ahorro (Espagne); Interbrands (Sweden); RecycleBank (USA); Jenny Craig (USA); Autotrader (USA); AZ/Medimmune (USA); C&A (China); Tourism Malaysia (Malaysia); MOM (Singapore); city of Antwerp (Belgium); Nyhavn Rejser (Denmark); L'Oreal (Greece); Khazan (Kuweït); MarCons (Kuweït); Galderma (Sweden); Parship (Sweden); Unum (UK); L'Oreal (USA); EDMC Incremental (USA); Reckitt Benckiser (India), Disney (USA); Jazeera Childrens Channel (Mideast and Africa); Hachette Fascicoli (Romania); Pegasus (Romania); EU Funds campaign (Romania); Fire Prevention Campaign (Spain); Deli (Belgium); KMDA (Belgium); Rich Bake (Egypt); Peak Performance (Europe, USA, Asia); Carlsberg (China); PPTV (China); Honda (India); Infocom Development Authority (Singapore); Merino (India); Science Centre Singapore (Singapore); Dunelm Mills (UK); Pizza Hut (US); C&A (Austria); Unicharm (India); Agrostar (Romania); City Cinema (Romania); Sandals (USA); Charter Hall Ltd (Australia); Singapore University of Technology & Design (Singapore).
Digitas
Pages jaunes (France); Dassault (France); Chili's (USA); Kaiser-Permanente (USA); Intuit (USA); Mars Petcare (USA); Comcast (USA); Delta (USA); Mead Johnson (USA); Post (USA); American Express (USA); Harley Davidson (China); L'Oreal (China, France); OnStar (China); Nestlé (France); Samsung (UK, Brazil, USA) ; Samsung Mobile (India); Samsung Electronics (India); Equifax (USA); Nationwide (UK); Owens Corning (USA).
Fallon
Axa (UK).
2011 Press Releases
01-26-2011 Publicis Groupe Proposes to Acquire Chemistry through a Recommended Cash Offer
01-27-2011 Publicis Groupe Increases its Stake in Wefcos - Véronique Morali Appointed Wefcos President
02-10-2011 Publicis Groupe 2010 Annual Results
02-17-2011 Publicis Groupe Acquires London-Based Holler Strengthening Leo Burnett Digital Offer
02-21-2011 Publicis Groupe Launches Publicis Webformance - An Initiative Aimed at Supporting Small and Medium Businesses
02-23-2011 Publicis Groupe Acquires Interactive Communications Ltd. in Taiwan
03-03-2011 Publicis Groupe Acquires Kitcatt Nohr in the UK
03-10-2011 Publicis Groupe Acquires London-Based Airlock in its Latest UK Digital Operation
03-22-2011 Publicis Groupe Acquires India-Based Watermelon
03-30-2011 Jean-Yves Naouri Is Named Executive Chairman of Publicis Worldwide
04-15-2011 Publicis Groupe Sells Its Stake in Freud Communications
04-18-2011 Publicis Groupe Takes Majority Stake in Brazil's Talent Group
04-21-2011 Publicis Groupe : 1st Quarter 2011 Revenue
04-26-2011 Publicis Groupe Acquires Sao Paulo Agency GP7 Furthering Its Expansion into the Brazilian Market
04-27-2011 Publicis Groupe Revitalizes Leo Burnett Brazil Operations
05-12-2011 Publicis Groupe Acquires Beijing-Based Dreams
05-17-2011 Publicis Groupe to Acquire Rosetta. One of the Fastest Growing Digital Marketing Agencies in North America
06-07-2011 Publicis Groupe Annual General Shareholders Meeting
06-20-2011 Publicis Groupe Further Expands in China with Acquisition of Genedigi
06-28-2011 Publicis Groupe launches Operations in Ecuador
07-04-2011 Publicis Groupe Acquires leading Swiss Agency Spillmann/Felser/Leo Burnett
07-05-2011 Acquisition of Rosetta closed
07-06-2011 Notice of adjustment to the conversion ratio for the 2014 convertible bonds (OCEANE)
07-11-2011 Publicis Groupe Acquires Brazilian Agency DPZ
07-15-2011 Publicis Groupe S.A. signs a EUR 1.2 billion multi-currency revolving credit facility
07-18-2011 Publicis Groupe Takes Majority Stake in Social Agency Big Fuel
07-21-2011 Publicis Groupe: H1 2011 Results
09-15-2011 Publicis Groupe Acquires PR Agency Schwartz Communications
10-03-2011 Publicis Groupe Appoints Stéphanie Atellian as Investor Relations Officer
For further information:http://www.publicisgroupe.com
Glossary
Net financial debt (or net debt): equals the long and short term financial debt plus associated derivatives fair value, less cash and cash equivalent
Average half-year net debt: half-year average of average monthly net debt.
Operating margin: The operating margin is equal to the revenue after deduction of personnel expenses, other operating expenses (excluding non current income and expenses), depreciation and amortization (excluding intangible arising from acquisitions).
Operating margin rate: operating margin/revenue.
Free cash flow: cash flow from operations minus capital expenditures for tangible and intangible fixed assets, excluding acquisitions.
Net new business: this figure is derived not from financial reporting but from estimated media-marketing budgets based on annual business (net of losses) from new and existing clients.
Publicis Groupe Contacts
Peggy Nahmany, Corporate Communication:
+33-(0)1-44-43-72-83
[email protected]
Martine Hue, Investor Relations:
+33-(0)1-44-43-65-00
[email protected]
SOURCE Publicis Groupe
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