Publicis posts ‘unsatisfactory’ results after collapse of Omnicom mega-merger
Publicis Groupe, which operates consultancies including DigitasLBi and Poke, says its results for the first half of 2014 are ‘not satisfactory’.
The network had been planning a merger with rival Omnicom, which would have created the world’s largest marketing network. This deal fell through in May, reportedly due to issues around the complex tax structure and divergent cultures in the organisations.
Publicis Groupe has now announced a 16.9 per cent fall in net income, with chairman and chief executive Maurice Lévy describing the performance as ‘weaker than expected’.
Lévy put this poor return down to the cancellation and postponement of campaigns and the impact of exchange rates.
He says, ‘These figures are not satisfactory by our standards. They are not consistent with what our operations can achieve.’
Publicis says it plans to develop growth through ‘targeted investments’, mainly in digital services.
The network recently bought sustainability-focused branding consultancy Salterbaxter, and last year acquired digital consultancy Poke.
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