Publicis offers cautious outlook

LONDON - French advertising network Publicis Groupe is offering an "extremely cautious" outlook about its forecast for 2002, but remains confident it can reach its revised targets for 2001.

Publicis, the world's sixth-largest advertising group, started 2001 -- a year chairman Maurice Levy today described as "Chinese water torture" -- with organic revenue growth targets of 7%, before readjusting forecasts to 5%. After the events of September 11, the target fell further to 3%-3.5%.



Levy is also confident the group, which owns agencies Saatchi & Saatchi and Publicis, will reach its expected 17% earnings before interest, taxes, depreciation and amortisation margin.



Levy was talking at an extraordinary meeting of shareholders in Paris, called to renew a number of financial authorisations granted to the executive management board.



In November last year, Publicis said it had been hit by slower growth in advertising and communication spending worldwide, a marked decline compared with last year in the US and Asia.



Earlier in July, Publicis and Cordiant Communications pooled their media operations and created a new company, in which Publicis has a 75% interest, bringing together the Optimedia and Zenith Media networks.



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