Profits at global advertising network, Publicis Groupe, rose by 21.8% to €263 million in 2003. This follows the integration of Bcom3 and a return to sustainable organic growth, the company said this morning.
Organic growth at the network was 2.0%, within which there was a 3.7% rise during the second half of the year. The confidence at Publicis is illustrated by plans to increase the dividend to shareholders by 8.3% to €0.26. Chairman Maurice Levy issued this effervescent reaction to the group’s figures:
“Our 2003 objectives were extremely ambitious. Without exception, they were achieved or surpassed. They included the successful integration of Bcom3, a very complex task; redistribution of the assets of D’Arcy after dissolving its network; reorganisation of our health communications offering; and the repositioning of our specialized agencies and marketing services, while simultaneously improving our profitability and balance sheet.”
The company succeeded in achieving an operating margin of above 15% during the second half and Levy is hoping that this will be sustained. Its full-year margin of 14.3% puts it ahead of WPP’s 13%, Havas’ 8.3% and Interpublic’s 0.9%.
Publicis owns a number of advertising, media and communication agencies, including Leo Burnett, ZenithOptimedia, Starcom MediaVest Group and Saatchi & Saatchi.
Meanwhile, rival network, Interpublic Group, yesterday reported a loss of $102.5 million for the fourth quarter, even though revenues rose by 5.7% to $1.6 billion for the same period.
The loss was blamed on the costs of restructuring the business and chairman David Bell said that the first phase of a turnaround will soon be behind the company.
For the full year, Interpublic’s revenues were up by 2.2% to $5.9 billion and the net loss was $457.1 million, down from a profit of $99.5 million in 2002. Its operating margin was 0.9%, down from 6.3% in 2002.
Interpublic owns the McCann-Erickson WorldGroup, Initiative Media and The Lowe + Draft Partnership, amongst other companies.
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