PARIS: Publicis Groupe saw organic growth of 0.2% in the third quarter of 2016 to $2.5 billion, blaming several high-profile media losses for the flat period. The holding company’s revenue was down 0.4% on an as-reported basis in the quarter.
The results missed analysts’ expectations for the period.
North American revenue was down 4% organically in the quarter to $1.4 billion, and it dropped 0.4% in Asia-Pacific to $286 million. Organic growth was 7.6% in Europe to $705 million, 13.1% in Latin America to $97.6 million, and 4.1% to the Middle East and Africa to $74.6 million.
The holding company noted that it recorded negative growth in countries including the U.S., Australia, Canada, Israel, and Spain in the first nine months of the year. The U.K. and China were among the countries that registered 0% to 5% organic growth in the first three quarters of 2016.
It noted account wins for Publicis Communications for Procter & Gamble’s dish, Asda, GSK, Walmart, and HPE, as well as Publicis Media and MSLGroup’s win of Coty. It also acknowledged account losses for Walmart for media and McDonald’s for creative.
The holding company did not break out financial information for individual business segments, such as PR or creative. MSL chief Guillaume Herbette could not be reached for comment.
Publicis Groupe CEO Maurice Levy also confirmed that the company’s board will select a successor for him in February.
Organic growth represents change in revenue without taking into account the impact of acquisitions or disposals.
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