Publicis Groupe

Publicis Groupe Russia is an international advertising and communication holding company. In Russia, the group unites 17 media, creative, digital and specialized agencies. Thanks to the approach of The Power of One Publicis Groupe provides customers seamless access to all expertise and tools for business development.

Assets

For 2014, Publicis Groupe manages the following agencies:

• Leo Burnett,
• Publicis,
• Saatchi & Saatchi,
• Starcom MediaVest,
• ZenithOptimedia,
• Razorfish,
• Digitas and others.

Performance indicators

2022: Receiving losses of 87 million euros for the first quarter due to departure from Russia

The French advertising group Publicis lost 87 million euros in the first quarter of 2022 due to leaving Russia. The company reported this in its reporting, published in early May 2022. It also says that the Russian division was excluded from reporting from April 1.

For Russian agencies, which until April 2022 belonged to the French advertising and communication holding Publicis, a symbolic amount was paid, said Sergey Koptev, the new owner of the assets, in an interview with RBC. According to him, All discussions of the upcoming deal were held on Zoom. Notary and lawyers took part in the convocations: "From the French side - with power of attorney, from ours - we personally. We agreed in almost two or three calls, "he said.

French advertising group Publicis lost 87 million euros in the quarter due to leaving Russia

According to the results of the transaction, which was closed in early April, Publicis Groupe has 19% left in Russian agencies. The new main owner explained this with his request: such a share, which does not allow making decisions and influencing operational activities, is necessary to preserve the "bridge for interaction." In addition, this package made it possible to convince the French side to leave agency brands in Russia, as well as to maintain the exchange of expertise.

Despite the losses associated with leaving the Russian market, Publicis net revenue in the first three months of 2022 year amounted to 2.8 billion, which is 17.1% more than in the first quarter of 2021 year. Global organic growth (without acquisitions, asset sales and currency fluctuations) was 10.5% year-on-year, compared to 2.8% in the same period last year. In the United States, this figure reached 8%, in Europe - 14.9%, in Asia - 14.4%.

According to Publicis Groupe, at the end of March 2022, the net debt of the media group amounted to 718 million euros compared to 76 million euros in 2021, which is explained in the report by the "seasonality of activities." Net debt at the end of March 2021 was 1.9 million euros.^[1]

2013

The company's revenue in 2013 was 6.953 billion euros (+ 5.2%), net profit - 816 million euros (+ 11.5%).

History

2022

Sale of assets in Russia to the company "Native Speech"

On April 21, 2022, it became known that the Rodnaya Speech group of companies closed a deal to acquire the assets of the French communication holding Publicis Groupe in Russia, the company said. The decision was made against the backdrop of the conflict in Ukraine and sanctions against the Russian Federation by the United States and their satellites. The French Publicis Group announced the curtailment of activities in Russia on March 15. In its financial statements for the first quarter of 2022, the group noted that leaving the Russian market cost it 87 million euros.

Chairman of the Board of Directors of the Native Speech Group of Companies - Sergey Koptev.

All agencies owned by the holding continue to work in Russia in full as affiliated structures and become part of the Rodnaya Speech group of companies, the report said. These are the creative agencies Leo Burnett, Saatchi & Saatchi, Publicis, media agencies Starcom, Zenith, Spark Foundry, digital agency Digitas, performance agency Performics, branding agency Graphics, PR agency MSL, pharmacology agency Igegios ProHealth The group of companies will also include the creative agency "Native Speech" and the media agency - "RoRe Media." Negotiations are underway for new forms of partnership with Starlink.

"Despite changes in the format of ownership and the name of the group, the management team has the same people, whose professionalism and level of expertise the market has known for many years. We will also remain true to the Power of One approach, thanks to which our customers have the opportunity to access any necessary expertise of the group, whether it be e-commerce, data sciences or retail media, "comments Sergey Koptev.

Withdrawal from Russia amid conflict in Ukraine

In mid-March 2022, it became known about the departure of the French advertising holding Publicis Groupe from the Russian Federation. The group decided to transfer control of Russian business to local management - the founder and head of Publicis in Russia Sergey Koptev.

According to Interfax, citing a statement by Publicis Groupe, the transfer of Russian business to Koptev is carried out "with a clear condition for ensuring the future of employees."

French advertising giant Publicis Groupe gives Russian business to Russians

By transferring control over our Russian operations to Sergey, we provide a future for our colleagues, and we immediately cease all our operations, obligations and investments in the Russian Federation, "said Arthur Sandun, Director General of the Board of Directors of Publicis.

According to him, after the start of the Russian special operation in Ukraine, the company launched the process of going out of business in the Russian Federation. They were ready to take tough measures that fully meet the seriousness of the situation, but Publicis took time to make a decision, putting people at the forefront, Sandun said. He added that by mid-March 2022, Publicis in Russia employs about 1,200 employees.

It is noted that under the leadership of Sergei Koptev, all agencies of the group in Russia will continue their work, providing a range of services in full.

A number of other major foreign advertising communication groups also suspended their work in Russia. So, WPP, Dentsu and IPG Creative decided to localize business in the Russian Federation, and Havas froze investments in the country. In Russia, Havas and IPG are represented by the ADV group, the IPG Mediabrands division continues to operate normally by March 17, 2022. The decision of foreign companies to stop activities in the Russian Federation is associated with the Russian special operation in Ukraine and the subsequent Western sanctions.^[2]

2019: Purchase of Epsilon digital marketing agency for $4.4 billion

In mid-April 2019, Publicis Groupe advertising holding announced the acquisition of Epsilon for $4.4 billion, including taxes. As part of the transaction, the US digital marketing agency was valued at $3.95 billion, which is more than eight times the company's EBITDA profit for 2018. More details here.

2018: Refusal to participate in advertising festivals for a year

In 2018, the head of the Publicis Group advertising holding, Arthur Sadoun, said that the Cannes lions, like any advertising festival, were crowded with fake works that were not part of the official campaign, but were created specifically for the show.

For example, in 2011, one of the agencies won the Cannes Festival silver award for advertising Kia, which the car company did not pay for. Later, the award was selected.

Publicis decided to boycott all festivals and advertising shows for a whole year. Probably, the boycott implies the refusal to present their own work, because a landing of 18 agency employees will land on the Lions.

In 2017, Publicis banned all its agencies, including Saatchi & Saatchi and Leo Burnett, from participating in festivals.

Instead, Arthur Sadun called for a focus on developing an internal AI platform codenamed Marcel. It is designed to become a powerful customer service tool.

2013: Failed merger with Omnicom Group

In July 2013, the French Publicis Groupe and the American Omnicom Group agreed to merge the companies, which is supposed to create the largest advertising group in the world with revenue of $23 billion and remove the market leader WPP Plc. After 9 months, the companies refused to merge. For more information, see Publicis Omnicom Group.