Publicis revenues up 26% for the quarter

PARIS: Publicis reported $1.85 billion in revenue for the third quarter of 2010, a 26.1% increase over the $1.466 billion from the same time last year.

PARIS: Publicis reported $1.85 billion* in revenue for the third quarter of 2010, a 26.1% increase over the $1.466 billion from the same time last year. The Specialized Agencies and Marketing Services group, which includes all digital work and PR agencies such as MSLGroup, accounted for 48% of revenue, or approximately $887 million.

CEO Maurice Levy attributed the growth to the improving global advertising market, as well as the holding company's strategy of investing in emerging markets and digital.

Digital now makes up 28.7% of revenues for Publicis year-to-date, up from 21.3% at the same time last year. In North America, digital accounts for 44.4% of revenue. In North America, overall revenue was up 36.5%, from $683.6 million in the third quarter 2009 to $932.9 million in Q3 2010. Organic growth in North America was 12%.

For the year-to-date, revenues were $5.4 billion, an 18.5% increase from the same time last year, when reported revenues were $4.56 billion.

Organic growth was 9.2% for the quarter, and 6.6% for the year-to-date, a sharp increase from the same time last year, when it was down 6.9% for the first nine months of the year.

Levy, who has been optimistic about the economic recovery, also continued to increase Publicis' outlook for the year, saying the company would reach 6% overall organic growth for the year, up from previously expected 3.5%.

"Despite traditional fourth quarter uncertainties, we are confident about how the year will end," Levy said in a statement. "With competitive strengths like our positions in digital communications and fast growing countries (the two sectors we expect to eventually generate 60% of our revenue), we believe we can and will sustainably outperform the market."

*All figures were converted to US dollars from euros using the XE currency converter.

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