In the group's half-year and second quarter financial results published today (23 July), it estimates this month or August will signal its lowest point of the year and this will be followed by a "slow recovery".
The economic downturn took its toll in the second quarter on the group behind a host of ad agencies and media agencies, including Starcom MediaVest Group and ZenithOptimedia, with organic growth slipping 8.6%.
European operations were the most affected, with organic growth down 15.8% to €381m. This was followed, perhaps surprisingly, by a 9.9% drop in Asia-Pacific, also a 3.8% fall in North America and 0.4% contraction in Latin America.
The second quarter performance follows a 4.4% drop in organic revenue for the first quarter of 2009, when Publicis Groupe chairman Maurice Levy admitted "market deterioration is much worse than anticipated".
A series of new business wins ensured the group’s total revenue of €2.226bn in the first half of the year remained in line with that generated during the same period in 2008, a decline of 0.8%.
ZenithOptimedia’s network has been responsible for winning the most accounts throughout the entire group so far this year, contributing to net revenues of $3.9bn.
Falls in organic growth in the first half were partially offset by increases of 5.7% in the group’s digital activities, which now account for 20.8% of total revenue.
Operations in emerging markets which now account for 21.9% of group revenue, also proved to be more resilient, although still down 3.7%.
Maurice Levy, chairman and chief executive of Publicis Groupe, said the group continued to outperform the marketplace, noting that the falloff in ad spend is estimated between 13% and 15% for the first half of the year.
He added: "…as we see it, our strategy for digital and emerging markets, the spectacular turnaround of our healthcare business, and solid control of our costs and headcount provide adequate grounds for cautious optimism and the confidence that we can achieve all of our short-term goals."
Another negative impact on the group’s organic growth, to the tune of - 1.2%, has been its financial ties with embattled General Motors.
Yesterday, Publicis reported the impact of GM’s bankruptcy on its finances had been reduced from $78m to less than $12.8m following a restructuring and the formation of a new GM entity.
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