Global ad agencies Havas and Publicis have both released third quarter results which show improving, if not strong conditions.
Publicis saw revenues rise by just 2.0% on an organic basis, up from a 1.6% rise in Q2 and -1.2% in Q1. However, when the effect of the integration of Bcom3 is included, revenues jumped by 58% to €1.8 billion (see
Publicis Confirms BCom3 Merger Details).
Publicis says that it has benefited from an improvement in the global advertising market, powered by the recovery evident for the past several months in North America and in the Asia-Pacific region. The group says there are also encouraging signs in the European market, with relative improvement in Spain and of stabilisation in Germany, although the European marketplace as a whole remains negative in terms of organic growth, notably in France.
“For 2004, the simple continuation of current trends, supported by the US presidential election and the positive effects of major sports events (the Olympic Games and the Euro 2004 soccer championship) should create conditions for a good advertising year. On the other hand, there is continuing uncertainty as to the importance and timing of the European recovery,” said Publicis Groupe CEO Maurice Levy.
Over at Havas revenues are still in the red, but the trends are improving. The third quarter showed a dip of 5.5%, up from -6.8% in Q1 and -7.8% in Q2.
The group pointed out that excluding the 50 companies identified as penalizing revenues – and which are either being integrated within EURO RSCG Worldwide and MPG, or sold or closed or reorganised as part of the strategic reorganisation (see Havas Presses On With Restructuring, H1 Profits Down) – the negative organic trend would be less than 2%.
Havas concurred with Publicis in its assessment of global market conditions, saying that there are positive trends in Asia-Pacific and the US, in contrast to Europe, where the market remains difficult.
Interpublic also released Q3 results this week, in which it reported continuing losses (see Interpublic Losses Continue In Restructure).
