Analysts had predicted Publicis, owner of Leo Burnett, Starcom MediaVest and ZenithOptimedia, would post net profit of between €338m and €340m.
Shares in Publicis, traded on the Paris Bourse, rose by over 2.28% this morning on the news, trading at €33.14.
The group said it will raise its net dividend by 20% to €0.36 a share, payable in July 2006.
Publicis said total group revenue for 2005 was up 6.8% to €4.13bn. Organic growth was up by almost 7%.
Operating income rose to €690m from €580 in 2004, driven by higher revenues and cost control.
Publicis also said it has slashed net debt by two-thirds to €207m from €618m in 2004, its lowest level since 1999.
Maurice Levy, Publicis chairman, said he is confident the group will report very satisfactory results in 2006 while beating its competitors.
"I believe that we are now at the beginning of a fresh cycle of growth that will enable us to consistently outperform our competitors," he said.
Among its 2005 new-business wins was the $3.5bn North America media account for General Motors, won by Starcom MediaVest, and the £100m L'Oreal Europe media work, which went to ZenithOptimedia.
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