Publicis Attributes Media Nets To Strong Results, Both It And Havas Cite Weak Dollar

Citing "excellent double digit growth" among its two media networks - Starcom MediaVest Group and ZenithOptimedia Group - as well as recently acquired digital network Digitas, Paris-based Publicis Groupe reported what CEO Maurice Levy termed as "good" results for the third quarter of 2007. Revenues rose 10.8% to $1.617 billion, offsetting what the company described as a "disappointing" first half. In fact, third quarter results would have been even stronger, except for the impact of a week U.S. dollar on Publicis' global results.

On the basis of constant exchange rates, Publicis' revenues would have grown 15% in the third quarter. Results for the first nine months would have approached 12% vs. 7.5% after the affect of currency exchanges.

Publicis is not the only global agency holding company to report the negative impact of the U.S. dollar's exchange rate on its results. London-based WPP Group previously reported a similar story, and Havas, the Paris-based parent of MPG, Media Contacts and other agencies, this morning reported a 7.3% gain in third quarter revenues, which were adversely affected by the U.S. dollar. On an organic growth basis, Havas rise 9.3% during the third quarter, marking its strongest quarterly organic growth since 2000.



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