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Publicis Reports Organic Growth Up 6.5 Percent in Q1

Publicis Groupe reported its Q1 2011 earnings, announcing a 6.5 percent increase in organic growth, up from 3.1 percent in Q1 2010. Revenue for the quarter was €1.29 billion (about $1.87 billion by today’s currency exchange rate) up 10.7 percent from the €1.16 reported this time last year.

“Our investments in digital are paying off, and the signals we are getting from emerging markets are highly encouraging. As before, China has priority status; we expect our business there to double by 2013,” Maurice Lévy, Publicis chairman and CEO said in a statement. Net new business wins totaled nearly $2 billion he added.

The earnings release highlighted growth in the U.S. (8.4 percent organic growth with €632 million in revenue, or $919.35 million) and Europe (6.2 percent organic growth with €409 million in revenue, or $595 million) , especially France with increases in Germany.

Digital was also very strong, with the Specialized Marketing Services (SAMS) group accounting for 49 percent of total revenue. (Advertising made up 32 percent of revenue, down from 34 percent in Q1 2010.)  Digital and business in emerging economies together made up 48.3 percent of revenue.

Among new business wins for MSLGroup were Special K, Sodexo, Home Depot, and Keurig  in the U.S.; TAKA in the U.K. and Dubai; and AstraZeneca in China.

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