Earnings

Europe not taking off: Publicis CEO

Advertisers are cutting costs: Publicis CEO
VIDEO4:4104:41
Advertisers are cutting costs: Publicis CEO

French advertising agency Publicis reported a 25 percent increase in full-year net profit but Chief Executive Maurice Levy highlighted concerns that the European economy is "not taking off."

Publicis reported full-year organic sales growth of 1.5 percent to 9.6 billion euros ($10.8 billion). Net profit for the year came in at 901 million euros.

However Levy told CNBC that concerns still surrounded the uneven state of the European economy.

Publicis CEO Maurice Levy
Getty Images

"We are concerned about the situation in Europe," he told CNBC. "If you look at the macroeconomics, they are expecting GDP (gross domestic product) growth of 1.6 per cent - which is rather low."

"Germany is doing well. The U.K., from a macro standpoint is doing extremely well. Less so in our own situation and we are improving our position."

Last July, Publicis cut its 2015 sales forecast, warning that tougher conditions in the U.K. and Latin America could hurt an improvement that had been seen in the first half of the year.

It also reduced its full-year agencies market growth forecast to 2.5 percent from 3 percent and said its own sales would remain "in line" with the trimmed outlook.

Publicis trims full-year sales outlook

Levy said he had noticed a drop in French business since the terrorist attacks in Paris last November but the French economy was "starting to take off progressiveley."

Nonetheless he warned that Europe in 2016 would see uneven growth.

"I don't believe (we'll see) a very bright EU market in 2016," he told CNBC.

"There will still issues with the unbalance between of countries and the fact that there will be some contrast. Unemployment is a big issue in Europe and the economy is not taking off. That is the reality."


Balint Porneczi | Bloomberg | Getty Images

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