Publicis Groupe S.A. ADROTCQX
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  • Fri, Sep. 9, 11:14 AM
    • Shares in MDC Partners (NASDAQ:MDCA) are "speculative deep value," says Albert Fried, and aside from base valuation, management should explore M&A opportunities from key international ad concerns.
    • It's reiterating an Overweight rating and a $17 price target, implying 36% upside, based on a 9x multiple of enterprise value to adjusted operating cash flow.
    • The firm's fighting a bear consensus, Rich Tullo acknowledges, but their experience with ad companies has taught them "The companies can be choppy but operating leverage can also be impressive over the course of a company business cycle."
    • Improvements to working capital can help the company sustain its 6.7% dividend yield, he writes.
    • More than 10% of outstanding shares are short, and "it may be time to cover shorts, in our humble opinion, as we expect a modest Y/Y revenue acceleration and the stock is cheap."
    • As for strategic value, Fried thinks Publicis Groupe (OTCQX:PUBGY) should acquire MDC Partners, though Tullo would like to see the company shopped to Japan's Dentsu or Havas (OTCPK:HAVSF) as well. Publicis may need to make acquisitions after its failed merger with Omnicom, along with a series of account losses and overweight exposure to the EU.
    | Fri, Sep. 9, 11:14 AM
  • Mon, Aug. 29, 6:38 PM
    • Omnicom (NYSE:OMC) got a boost today, up 1.5% as it scored a coup: taking control of the McDonald's account after the fast food giant ended a decades-long relationship.
    • Following a review, McDonald's elected to consolidate business with Omnicom to united media and creative work, putting wraps on a 35-year relationship with Leo Burnett, part of Publicis Groupe (OTCQX:PUBGY).
    • Omnicom will be working with McDonald's -- which spent $820M on U.S. advertising last year -- to build an "agency of the future," says McD's Chief Marketing Officer Deborah Wahl.
    • McDonald's has had an existing creative relationship with Omnicom's DDB for 45 years.
    • And agencies may change, but taglines don't always follow suit: "I'm Lovin' It" will continue to be a part of McDonald's campaigns.
    | Mon, Aug. 29, 6:38 PM
  • Thu, Jul. 21, 3:22 AM
    | Thu, Jul. 21, 3:22 AM
  • Tue, Jul. 12, 2:18 PM
    • Publicis Groupe (OTCQX:PGPEF, OTCQX:PUBGY, OTC:PBCBF) announces the launch of a new strategic relationship with Wal-Mart.
    • Publicis Groupe and Wal-Mart will partner on advertising and marketing efforts. The relationship, which is not exclusive, went into effect on July 1 and initially applies to Walmart’s US advertising and in-store creative for which Publicis Groupe will function as the primary agency.
    • Walmart will also have access to Publicis resources outside of marketing, including capabilities to support corporate reputation and technology that builds relationships with customers.
    • Publicis Groupe says it will pull resources from the various agencies in its portfolio to ensure the right talent is working on each Wal-Mart project.
    • Press Release
    | Tue, Jul. 12, 2:18 PM
  • Thu, Jun. 2, 1:47 PM
    • Ad agencies are getting rebates from media companies based on spending a certain amount on behalf of marketing clients, an eight-month trade-group investigation is showing.
    • That practice is widespread in the sample it looked at, the WSJ reports that the Association of National Advertisers found. The report is due for full release soon, and may cast doubts on ad industry transparency (and raise fears among marketers that agencies don't have their best interests at heart, a trust that has been fraying in recent years).
    • Accepting rebates is common elsewhere, in Europe and China, but historically not part of the ad business in America, and agencies have said publicly they don't accept rebates.
    • Leading ad agencies: WPPGY, OMC, OTCQX:PUBGY, IPG, OTCPK:HAVSF
    | Thu, Jun. 2, 1:47 PM
  • Mon, Apr. 25, 11:16 AM
    | Mon, Apr. 25, 11:16 AM | 2 Comments
  • Fri, Mar. 11, 12:10 PM
    • Publicis Groupe (OTCQX:PUBGY +2.6%) is overhauling its media operations with large-scale changes as it tries to jump-start its business after some bruising account reviews.
    • The moves mean some more central media buying a la rival WPP (WPPGY +1.7%), though Publicis says individual agency brands are still important.
    • The company is eliminating its Vivaki digital ad-tech division, folding it into Publicis Media, where Tim Jones (currently CEO of ZenithOptimedia North America) will become regional CEO. Vivaki chief Stephan Beringer will head data and technology at Publicis Media.
    • Meanwhile, Mediavest will be merged with Spark (and Chris Boothe made CEO there), and Optimedia will be combined with Blue 449. The company's two biggest agencies will remain separate, as Starcom and Zenith, as the umbrella companies (ZenithOptimedia and Starcom Mediavest) are dismantled.
    • The company will have four agency CEOs in the U.S., reporting to Jones.
    • Publicis has recently lost media business from clients including Procter & Gamble, Coca-Cola and Wal-Mart.
    | Fri, Mar. 11, 12:10 PM
  • Thu, Feb. 11, 7:30 AM
    • Publicis Groupe S.A. ADR (OTCQX:PUBGY):FY'15 EPS of €4.39
    • Revenue of €9.6B (+32.8% Y/Y)
    | Thu, Feb. 11, 7:30 AM
  • Tue, Feb. 9, 8:38 PM
    • After a bruising wave of media reviews shook up advertising giants and their valued accounts in 2015, Omnicom (NYSE:OMC) chief John Wren says it's too soon to tell whether 2016 will bring a repeat.
    • He was speaking on the company's earnings call after the company beat earnings expectations and grew organic revenue. Omnicom closed today up 2.7%.
    • “Whether the pace of 2015 continues into 2016 it is too early to say, but we will not be surprised if the patterns continue,” Wren said.
    • Publicis Groupe (OTCQX:PUBGY) went into 2015's reviews with the most to lose, defending billions of dollars in bookings, and Omnicom was the one that took the biggest one from Publicis in grabbing the bulk of media planning and buying for Procter & Gamble.
    • CFO Phil Angelastro suggested that the company's M&A activity may pick up: “To the extent we can find acquisitions that fit strategically, culturally and pricing makes sense, we’re going to continue to look to do more acquisitions rather than less."
    • Previously: Omnicom +3.3% after growth in profits, organic revenue (Feb. 09 2016)
    | Tue, Feb. 9, 8:38 PM
  • Wed, Jan. 13, 1:38 PM
    | Wed, Jan. 13, 1:38 PM
  • Dec. 7, 2015, 12:07 PM
    • Ad giant Omnicom (NYSE:OMC) has jumped 1.8% as it's taking over most of the media buying and planning for Procter & Gamble, taking a significant chunk of business from Publicis Groupe (OTCQX:PUBGY +0.3%).
    • Publicis' Starcom Mediavest Group handled most of P&G's North American media; Omnicom reportedly didn't have any of the consumer-products giant's business previously.
    • It's not entirely unexpected but still a blow to Publicis, which went into an unusually heavy review period this summer with the most to lose among its peers.
    • Billings up for review this year were more than the past three years combined; the P&G account has been one of the most heavily watched pitches, as the company is the world's biggest ad spender.
    • Previously: Publicis +2.3%, sets major restructuring into four hubs for 2016 (Dec. 03 2015)
    • Previously: Volatile summer for ad agencies with $26B under review (Jun. 12 2015)
    | Dec. 7, 2015, 12:07 PM
  • Dec. 3, 2015, 11:47 AM
    • After a few disappointing years, ad giant Publicis Groupe (OTCQX:PUBGY +2.3%) is undergoing a major restructuring for the coming year, with plans to divide its current brands into four hubs.
    • The hubs are refocused to put client service first and share "tools, platforms and back-office services," says CEO Maurice Levy.
    • Arthur Sadoun will lead a new creative hub, Publicis Communications; Steve King will head the media arm, Publicis Media; Alan Herrick will be chief of a digital-technology hub, Publicis.Sapient; and Nick Colucci will lead a new area, Publicis Healthcare.
    • All the company's brands will continue with their own identities, but the change is a refocus that shifts power to the four leaders. Sadoun is in focus, as he's considered a candidate to succeed Levy, who has said he would retire in 2017.
    • Levy also announced a new initiative, Publicis One, designed to press beyond the company's current geographical footprint (90% of Publicis revenue comes from just 20 countries).
    | Dec. 3, 2015, 11:47 AM
  • Oct. 22, 2015, 1:28 PM
    • ADRs in Publicis Groupe (OTCQX:PUBGY) have tumbled 8% on their worst day in seven years, after the company cut its full-year sales outlook amid the ad industry's "Reviewmageddon."
    • Revenue in Q3 was just €2.33B -- up 33% in headline terms, but just a 0.7% organic gain where analysts expected 2.4%. The company now expects full-year organic revenue to grow at 1%, below its original 2.5% outlook.
    • In a heavy season for clients reviewing their business with ad giants, Publicis CEO Maurice Levy says an unusually high number of clients are cutting business or even canceling campaigns. "Modest" growth in Europe and North America, where the company gets the bulk of its revenues, are pressuring the forecast.
    • Publicis went into the heavy review cycle with the most to lose, having to defend $7.2B in billings.
    • Shares closed down 7% in Paris.
    • Previously: Volatile summer for ad agencies with $26B under review (Jun. 12 2015)
    | Oct. 22, 2015, 1:28 PM
  • Oct. 2, 2015, 8:41 PM
    • Verizon (NYSE:VZ) has gone live with its Go90 mobile video service, and today the app jumped into the No. 14 spot in iOS Entertainment.
    • That's a spot well behind Netflix and Hulu, but ahead of Comcast's Xfinity TV Go and HBO Now.
    • The company planned an $80M marketing blitz to support the launch, and says it has a content library of 8,000 titles and 35 exclusive original series.
    • The app is free to all, meaning advertising will be the moneymaker -- and so the quality of content will be king. Go90 got more than $50M in ad commitments including an upfront deal with its exclusive agency partner Publicis Groupe (OTCQX:PUBGY +1.4%).
    • With few long-form shows at the moment, Go90 is competing less with OTT services like Netflix, Hulu or HBO Now, and more with YouTube, Snapchat and other Webby services.
    • Jefferies noted after meeting with AOL's Tim Armstrong that Verizon wants to grow into a "leading scaled OTT provider serving millions of customers while also becoming a top 3 player in the mobile advertising marketplace."
    | Oct. 2, 2015, 8:41 PM | 6 Comments
  • Aug. 24, 2015, 8:02 PM
    • As advertising's "summer of reviews" marches on, Publicis Groupe (OTCQX:PUBGY +0.6%) -- the company with the most to lose, defending $7.2B in billings -- has become Visa's choice to take a chunk of global media business, via its Starcom agency.
    • It's not yet disclosed exactly how much business Starcom's gotten. Visa spent $112M on U.S. measured media last year, down 13% Y/Y.
    • Seven years ago, during Visa's last media review, the account went to Omnicom's OMD.
    | Aug. 24, 2015, 8:02 PM
  • Jul. 20, 2015, 8:01 PM
    • Omnicom (NYSE:OMC) reports earnings tomorrow morning, kicking off reports from advertising's big players, including WPP (NASDAQ:WPPGY), Publicis (OTCQX:PUBGY) and Interpublic Group (NYSE:IPG) in a very shaky time for the Avenue, with a record amount of billings under review.
    • Overall, the group is expected to post organic sales growth in low- to mid-single digits.
    • With nearly $30B in spending under review by major advertisers, investors will be on the lookout for any color the agency groups can offer on new business and what it would mean to the bottom line. Publicis in particular is defending more than $7B in billings (EPS risk of 2.3%).
    • As if the reviews weren't enough, there's the evolution of TV upfronts -- increasingly granular data and the advent of over-the-top video is changing the nature of ordering TV ads -- and, as Nathalie Tadena notes, the chatter that rebates (kickbacks) are widespread.
    • Omnicom is expected to post EPS tomorrow morning of $1.20 on revenues of $3.77B (down 2.5% Y/Y), and EBITDA of $601.8M, according to Capital IQ.
    • Previously: Volatile summer for ad agencies with $26B under review (Jun. 12 2015)
    | Jul. 20, 2015, 8:01 PM