PUBLICIS Q4: In 2015 we will be 'back on growth' as we help businesses avoid 'becoming Uberized'
After a torrid first nine months of the year, in which Publicis Groupe CEO and chairman Maurice Levy has previously admitted he was distracted by the failed $35 billion merger with US agency holding group Omnicom, Publicis pulled it back in the fourth quarter to report a 4.3% lift in revenue for the full year to €7.23 billion.
Organic growth was up 3.2% in the fourth quarter and 2% in the full year. Meanwhile, headline profit rose 4.7% to €829 million and EPS increased 2.8% to €3.64.
That return to organic growth in the quarter was largely due to a strong performance in emerging markets, particularly in Greater China, Russia, Brazil, India, and Turkey. The USA posted 2.8% growth, but both France and the UK reported negative growth of -1.2%.
Publicis - which owns agencies including Saatchi & Saatchi, Starcom MediaVest, and Leo Burnett - completed its acquisition of Sapient last week. In an interview with EuroBusiness Media, Lévy described the strength the addition now offers Publicis versus rivals:
As a result of the Sapient buy, and market moves generally, Lévy believes 2015 will be the year in which digital represents more than 50% of Publicis' business. By 2018 he estimates that will to 80%. Digital currently generates 42% of Publicis' revenue.
Despite having confidence for the full-year 2015,Lévy warned that Q1 will be a tough quarter, followed by a "steady" Q2 and Q3, and then "full steam" in Q4. Growth will be led by digital, emerging markets and a better performance from Publicis' creative agencies, Lévy forecast. In his interview with EuroBusiness Media he said:
Media researchers ZenithOptimedia forecast the global advertising market to grow by 4.9% in 2015, with agency revenue growth expected to be between 3% and 3.5%.
The big task for Publicis in the year ahead will be the integration of Sapient: A company with more than 13,000 staff, more than half of which are based in India.
The acquisition will result in the creation of a platform to be named Publicis.Sapient, which the companies say in statement will create the "largest and most advanced" platform focused exclusively on digital transformation and "the dynamics of an always-on world across marketing, omni-channel commerce, consulting and technology." Publicis.Sapient will also house other Publicis digital agencies including DigitasLBI, Razorfish Global and Rosetta.
Publicis.Sapient will be led by Sapient CEO Alan Herrick. He first joined the Sapient in 1995 and became the company's chief and a member of the board of directors in 2006. He was named co-chairman of the board in June 2012. 30 other senior Sapient executives will also enter into long-term employment agreements with Publicis.