Reach for the syrup

23 October 2014 By Pierre Briançon

The French advertising group says focus on the failed merger with Omnicom explains its weak performance in the last quarter. It also has excuses for different parts of the business. The pressure is on to show at its next strategy update how it intends to shake its growth problem.

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French advertising group Publicis on Oct. 23 said organic sales growth was a disappointing 1 percent in the third quarter, blaming mainly its focus on “other plans” - a reference to this year’s failed merger with U.S.-based Omnicom.

Levy also warned that full-year 2014 organic growth would be “not very different from the first nine months,” when it was 1.5 percent. At the start of this year he had promised 4 percent.

Shares in the company fell more than 5 percent in early trade and were down 3 percent by mid-day. The stock is down 22 percent this year, underperforming a 4.3 percent drop in the European sector.

Publicis shares trade at 13.94 times expected earnings, according to Thomson Reuters Eikon data. Peer WPP shares trade at 13.24 times.

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