B&E | Sapient-related Charge tips Publicis into loss before CEO switch

CEO Maurice Levy to hand over reins to Arthur Sadoun on June 1

By Mathieu Rosemain and Gwénaëlle Barzic

B&E | Sapient-related Charge tips Publicis into loss before CEO switch

Image Attribute: Vector Graph for Stock Market / Source: DragonArtz Designs (This image has been used for representational purpose only)

PARIS, Feb 9 (Reuters) - Publicis paid a hefty price for its acquisition of ad firm Sapient on Thursday, with a 1.4 billion-euro writedown on its Publicis.Sapient arm pushing the French group to an annual loss and underlining the challenge for its new chief executive.

The French advertising group paid a 44 percent premium for Sapient, a price that puzzled many investors and analysts when the $3.7 billion deal was struck two years ago after the failed attempt to merge Publicis with rival Omnicom in 2014.

Thursday's total writedown of 1.44 billion euros casts a shadow over the legacy of departing CEO Maurice Levy, as the acquisition was meant to move Publicis closer to competing with companies like Accenture in digital consulting.

This was in stark contrast to larger competitor WPP, which invested heavily in real-time programmatic media buying and is due to report full-year earnings on March 3.

Publicis, the world's third-largest advertising company, is preparing for the change at the top when Levy hands over in June to 45-year-old Arthur Sadoun who oversees its creative agencies, including Saatchi & Saatchi and Leo Burnett.

And former Sapient boss Alan Herrick, once seen as a potential candidate to succeed 74-year-old Levy, does not appear in a new organisational chart from Jan. 26 which follows a reshuffle of the top management team, a source told Reuters.

Publicis is trying to foster greater cooperation between its agencies and win back big clients lost when several major contracts were renewed in 2015, but still reported weaker than expected sales in the last three months of 2016.

Shares in the group were as much as 5 percent lower and briefly the worst performer of the Euro Stoxx 600 index, after Publicis announced a net loss of 527 million euros.

It said a weaker performance from Razorfish, the digital marketing agency it bought from Microsoft in 2009, was also  responsible for the impairment charge in its digital division.

Razorfish, where revenues fell 15 percent in 2016, has been hit by management changes and the death of global chief executive Tom Adamski in October 2015.

U.S. SALES HIT  Fourth-quarter revenue for the group was 2.67 billion euros, an underlying drop of 2.5 percent compared with the same period a year ago, as market conditions in North America, Publicis' number largest region for sales, worsened over the three months.

A Reuters poll had forecast an underlying sales drop of 0.63 percent, but Publicis said political uncertainty around the U.S. election in November had hit advertising for products such as soft drinks and processed foods.

Levy said that the challenges were likely to continue to weigh on sales in the first half of 2017, although Publicis should see underlying sales growth return to the market average in the second half of the year.

Omnicom, the world's second-biggest advertising group, also faced a slowing market in North America, with 0.6 percent underlying sales growth for the region in the fourth quarter.

Despite the setback, Levy stuck to targets set out under the group's strategic plan for 2018, including a yearly operating margin of 17.3 to 19.3 percent. Last year, Publicis' operating margin stood at 15.6 percent.  "It's clear that it's a little bit more difficult... but it's not unachievable," Levy said of the 2018 targets.

Analyst Charles Bedouelle of Exane BNP Paribas said this was not the market view, however, citing the average forecast in operating margin for 2018 of about 16.5 percent.

($1 = 0.9357 euros)

(Editing by Bernard Orr/Keith Weir/Alexander Smith)

(c) 2017 Thomson Reuters
Name

-51,1,3D Technology,2,5G,6,Abkhazia,2,Academics,9,Accidents,19,Activism,1,ADB,11,ADIZ,1,Adults,1,Advertising,30,Advisory,1,Aerial Reconnaissance,11,Aerial Warfare,34,Aerospace,4,Afghanistan,81,Africa,108,Agile Methodology,2,Agriculture,15,Air Crash,9,Air Defence Identification Zone,1,Air Defense,5,Air Force,26,Air Pollution,1,Airbus,4,Aircraft Carriers,3,Aircraft Systems,1,Al Nusra,1,Al Qaida,3,Al Shabab,1,ALBA,1,Albania,2,Algeria,3,American History,4,AmritaJash,10,Antarctic,1,Anthropology,7,Anti Narcotics,11,Anti Tank,1,Anti-Corruption,3,Anti-dumping,1,Anti-Piracy,2,Anti-Submarine,1,Anti-Terrorism Legislation,1,Antitrust,1,APEC,1,Apple,2,Applied Sciences,2,AQAP,2,Arab League,3,Architecture,1,Arctic,6,Argentina,7,Armenia,26,Army,3,Art,1,Artificial Intelligence,62,Arunachal Pradesh,1,ASEAN,10,Asia,63,Asia Pacific,22,Assassination,2,Asset Management,1,Astrophysics,2,ATGM,1,Atmospheric Science,1,Atomic.Atom,1,Augmented Reality,7,Australia,43,Austria,1,Automation,13,Automotive,123,Autonomous Flight,2,Autonomous Vehicle,2,Aviation,57,AWACS,1,Awards,17,Azerbaijan,14,Azeri,1,B2B,1,Bahrain,9,Balance of Payments,1,Balance of Trade,3,Balkan,10,Baltic,3,Baluchistan,8,Bangladesh,27,Banking,48,Bankruptcy,1,Basel,1,Bashar Al Asad,1,Bay of Bengal,5,BBC,1,Beijing,1,Belarus,3,Belgium,1,Belt Road Initiative,3,Beto O'Rourke,1,BFSI,1,Bhutan,9,Big Data,29,Big Tech,1,Bilateral Cooperation,13,BIMSTEC,1,Biography,1,Biotechnology,2,BISA,1,Bitcoin,7,Black Lives Matter,1,Black Money,2,Black Sea,1,Blockchain,31,Blood Diamonds,1,Bloomberg,1,Boeing,19,Boko Haram,7,Bolivia,6,Bomb,2,Bond Market,1,Book,10,Book Review,17,Border Conflicts,5,Border Control and Surveillance,5,Bosnia,1,Brand Management,14,Brazil,99,Brexit,22,BRI,5,BRICS,16,British,3,Broadcasting,16,Brunei,2,Brussels,1,Buddhism,1,Budget,3,Build Back Better,1,Bulgaria,1,Burma,2,Business & Economy,967,C-UAS,1,California,4,Call for Proposals,1,Cambodia,5,Cameroon,1,Canada,46,Canadian Security Intelligence Service (CSIS),1,Carbon Economy,8,CAREC,1,Caribbean,9,CARICOM,1,Caspian Sea,2,Catalan,3,Caucasus,9,CBRN,1,Central African Republic,1,Central Asia,73,Central Asian,3,Central Eastern Europe,45,Certification,1,Chad,2,Chanakya,1,Charity,2,Chatbots,1,Chemicals,7,Child Labor,1,Children,4,Chile,10,China,439,Christianity,1,CIA,1,CIS,5,Citizenship,2,Civil Engineering,1,Civil Liberties,4,Civil Rights,2,Civil Society,4,Civilization,1,Clean Energy,4,Climate,62,Climate Change,13,Clinical Research,3,Clinton,1,Cloud Computing,39,Coal,4,Coast Guard,3,Cognitive Computing,12,Cold War,4,Colombia,15,Commodities,3,Communication,8,Communism,3,Compliance,1,Computers,40,Conferences,1,Conflict,78,Conflict Diamonds,1,Conflict Resolution,48,Conflict Resources,1,Congo,1,Construction,4,Consumer Behavior,4,Consumer Price Index,1,COP26,3,Coronavirus,106,Corporate Communication,1,Corporate Governance,4,Corporate Social Responsibility,4,Corruption,4,Costa Rica,2,Counter Intelligence,13,Counter Terrorism,79,COVID,4,COVID Vaccine,5,CPEC,7,CPG,3,Credit,1,Credit Score,1,Crimea,4,CRM,1,Croatia,2,Crypto Currency,11,Cryptography,1,CSTO,1,Cuba,6,Culture,4,Currency,6,Customer Relationship Management,1,Cyber Attack,6,Cyber Crime,2,Cyber Security & Warfare,103,Cybernetics,5,Cyberwarfare,16,Cyclone,1,Cyprus,5,Czech Republic,3,DACA,1,DARPA,3,Data,9,Data Analytics,35,Data Science,2,Database,2,Daughter.Leslee,1,Davos,1,DEA,1,DeBeers,1,Debt,9,Decision Support System,5,Defense,9,Defense Deals,5,Deforestation,2,Democracy,20,Democrats,2,Demonetization,6,Denmark. F-35,1,Denuclearization,1,Diamonds,1,Digital,38,Digital Economy,6,Digital Marketing,2,Digital Transformation,10,Diplomacy,10,Disaster Management,4,Disinformation,1,Djibouti,2,Documentary,2,Doklam,1,Dokolam,1,Dominica,2,Donald Trump,42,Donetsk,2,Dossier,2,Drones,10,E-Government,2,E-International Relations,1,Earning Reports,1,Earth Science,1,Earthquake,5,East Africa,1,East China Sea,9,eBook,1,ECB,1,eCommerce,11,Econometrics,1,Economic Justice,1,Economics,38,Economy,65,ECOWAS,2,Ecuador,3,Edge Computing,2,Education,60,Egypt,23,Elections,28,Electric Vehicle,10,Electricity,5,Electronics,7,Emerging Markets,1,Employment,12,Energy,306,Energy Policy,27,Energy Politics,23,Engineering,23,England,2,Enterprise Software Solutions,8,Entrepreneurship,15,Environment,45,ePayments,11,Epidemic,5,ESA,1,Ethiopia,3,Eulogy,2,Eurasia,3,Euro,5,Europe,5,European Union,214,EuroZone,5,Exclusive,2,Exhibitions,2,Explosives,1,Export Import,3,F-35,5,Facebook,7,Fake News,3,Fallen,1,FARC,2,Farnborough. United Kingdom,2,FATF,1,FDI,5,Featured,1102,Fidel Castro,1,Fiji,1,Finance,16,Financial Markets,47,Financial Statement,2,Finland,5,Fintech,13,Fiscal Policy,11,Fishery,3,Food Security,22,Forces,1,Forecasting,1,Foreign Policy,11,Forex,1,France,26,Free Market,1,Free Syrian Army,4,Freedom,3,Freedom of Speech,1,FTC,1,Fujairah,97,Fund Management,1,Funding,22,Future,1,G20,6,G24,1,G7,3,Gaddafi,1,Gambia,2,Gaming,1,Garissa Attack,1,Gas Price,9,GATT,1,Gaza,2,GCC,11,GDP,7,GDPR,1,Geneal Management,1,General Management,1,Geo Politics,103,Geography,1,Geoint,14,Geopolitics,5,Georgia,11,Georgian,1,geospatial,8,Geothermal,2,Germany,56,Ghana,3,Gibratar,1,Global Trade,88,Global Warming,1,Global Water Crisis,10,Globalization,2,Gold,1,Google,13,Gorkhaland,1,Government,125,GPS,1,Greater Asia,124,Greece,12,Green Bonds,1,Greenland,1,Gross Domestic Product,1,GST,1,Gujarat,6,Gun Control,4,Hacking,4,Haiti,2,Hasan,1,Health,7,Healthcare,71,Heatwave,1,Helicopter,10,Heliport,1,Hezbollah,3,High Altitude Warfare,1,High Speed Railway System,1,Hillary 2016,1,Hillary Clinton,1,Hinduism,2,Hindutva,4,History,10,Home Security,1,Honduras,2,Hong Kong,7,Horn of Africa,5,Housing,11,Houthi,11,Howitzer,1,Human Development,28,Human Resource Management,5,Human Rights,4,Humanitarian,3,Hungary,3,Hunger,3,Hydrocarbon,3,Hydrogen,2,IAEA,2,ICBM,1,ICO,1,Identification,2,IDF,1,Imaging,2,IMF,66,Immigration,16,Impeachment,1,Imran Khan,1,Independent Media,72,India,526,India's,1,Indian Air Force,18,Indian Army,5,Indian Nationalism,1,Indian Navy,22,Indian Ocean,16,Indices,1,Indo-Pacific,2,Indonesia,16,IndraStra,1,Industrial Accidents,3,Industrial Automation,2,Industrial Safety,4,Inflation,4,Infographic,1,Information Leaks,1,Infrastructure,3,Innovations,22,Insurance,3,Intellectual Property,3,Intelligence,5,Intelligence Analysis,8,Interest Rate,3,International Business,13,International Law,11,International Relations,7,Internet,52,Internet of Things,34,Interview,8,Intra-Government,5,Investigative Journalism,3,Investment,31,Investor Relations,1,IPO,4,Iran,184,Iraq,52,IRGC,1,Iron & Steel,1,ISAF,1,ISIL,9,ISIS,33,Islam,12,Islamic Banking,1,Islamic State,86,Israel,117,IT ITeS,129,Italy,10,Jabhat al-Nusra,1,Jamaica,3,Japan,56,JASDF,1,Jihad,1,Joe Biden,3,Joint Strike Fighter,4,Jordan,7,Journalism,6,Judicial,4,Justice System,3,Kanchin,1,Kashmir,8,Kazakhstan,22,Kenya,5,Kiev,1,Kindle,700,Knowledge Management,3,Kosovo,2,Kurdistan,8,Kurds,10,Kuwait,6,Kyrgyzstan,9,Labor Laws,10,Labor Market,4,Land Reforms,2,Land Warfare,21,Languages,1,Laos,1,Laser Defense Systems,1,Latin America,79,Law,5,Leadership,3,Lebanon,9,Legal,9,Liberalism,1,Library Science,1,Libya,12,Littoral Warfare,2,Livelihood,3,Loans,8,Lockdown,1,Lone Wolf Attacks,1,Lugansk,2,Macedonia,1,Machine Learning,7,Madagascar,1,Mahmoud,1,Main Battle Tank,3,Malaysia,10,Maldives,7,Mali,5,Malware,2,Management Consulting,6,Manpower,1,Manto,1,Manufacturing,14,Marijuana,1,Marine Engineering,3,Maritime,37,Market Research,2,Marketing,38,Mars,2,Martech,9,Mass Media,29,Mass Shooting,1,Material Science,2,Mauritania,1,MDGs,1,Mechatronics,2,Media War,1,Mediterranean,12,MENA,6,Mental Health,4,Mercosur,2,Mergers and Acquisitions,15,Meta,1,Metadata,2,Metals,1,Mexico,8,Micro-finance,4,Microsoft,11,Migration,19,Mike Pence,1,Military,99,Military Exercise,8,Military-Industrial Complex,1,Mining,15,Missile Launching Facilities,5,Missile Systems,51,Mobile Apps,3,Mobile Communications,10,Mobility,4,Modi,7,Moldova,1,Monaco,1,Monetary Policy,5,Money Market,2,Mongolia,8,Monsoon,1,Montreux Convention,1,Moon,4,Morocco,1,Morsi,1,Mortgage,3,Moscow,2,Motivation,1,Mozambique,1,Mubarak,1,Multilateralism,2,Mumbai,1,Muslim Brotherhood,2,Myanmar,24,NAFTA,3,NAM,2,Nanotechnology,4,NASA,12,National Security,5,Nationalism,2,NATO,29,Natural Disasters,10,Natural Gas,28,Naval Base,5,Naval Engineering,17,Naval Intelligence,2,Naval Postgraduate School,2,Naval Warfare,42,Navigation,2,Navy,21,NBC Warfare,2,Negotiations,1,Nepal,12,Neurosciences,6,New Delhi,4,New Normal,1,New York,4,New Zealand,5,News,1006,Newspaper,1,NFT,1,NGO,1,Nicaragua,1,Niger,3,Nigeria,10,Nirbhaya,1,Non Aligned Movement,1,Non Government Organization,4,Nonproliferation,2,North Africa,21,North America,37,North Korea,48,Norway,2,NSA,1,NSG,2,Nuclear,37,Nuclear Agreement,29,Nuclear Doctrine,1,Nuclear Security,43,Obama,3,ObamaCare,2,OBOR,15,Ocean Engineering,1,Oceania,2,OECD,4,OFID,5,Oil & Gas,328,Oil Gas,5,Oil Price,50,Olympics,2,Oman,25,Omicron,1,Oncology,1,Online Education,5,Online Reputation Management,1,OPEC,113,Open Access,1,Open Journal Systems,1,Open Letter,1,Open Source,4,Operation Unified Protector,1,Operational Research,4,Opinion,609,Pacific,5,Pakistan,155,Pakistan Air Force,3,Pakistan Army,1,Pakistan Navy,3,Palestine,21,Palm Oil,1,Pandemic,84,Papal,1,Paper,3,Papers,110,Papua New Guinea,1,Paracels,1,Partition,1,Partnership,1,Passport,1,Patents,2,PATRIOT Act,1,Peace Deal,5,Peacekeeping Mission,1,Pension,1,People Management,1,Persian Gulf,19,Peru,5,Petrochemicals,1,Petroleum,19,Pharmaceuticals,13,Philippines,11,Philosophy,2,Photos,3,Physics,1,Pipelines,5,PLAN,3,Plastic Industry,2,Poland,7,Polar,1,Policing,1,Policy,7,Policy Brief,6,Political Studies,1,Politics,36,Polynesia,3,Population,3,Portugal,1,Poverty,5,Power Transmission,6,President APJ Abdul Kalam,2,Presidential Election,30,Press Release,158,Prison System,1,Privacy,17,Private Equity,1,Private Military Contractors,1,Programming,1,Project Management,4,Propaganda,4,Protests,7,Psychology,3,Public Policy,55,Public Relations,1,Public Safety,7,Publishing,6,Putin,4,Q&A,1,Qatar,96,QC/QA,1,Qods Force,1,Quantum Computing,2,Quantum Physics,4,Quarter Results,2,Racial Justice,2,RADAR,1,Rahul Guhathakurta,4,Railway,7,Raj,1,Ranking,4,Rape,1,RCEP,1,Real Estate,1,Recall,4,Recession,1,Red Sea,2,Referendum,5,Reforms,17,Refugee,23,Regional,4,Regulations,1,Rehabilitation,1,Religion & Spirituality,9,Renewable,13,Reports,35,Repository,1,Republicans,2,Rescue Operation,1,Research,4,Research and Development,19,Retail,36,Revenue Management,1,Risk Management,4,Robotics,8,Rohingya,5,Romania,2,Royal Canadian Air Force,1,Rupee,1,Russia,257,Russian Navy,4,Saab,1,Saadat,1,SAARC,6,Safety,1,SAFTA,1,SAM,2,Samoa,1,Sanctions,3,SAR,1,SAT,1,Satellite,12,Saudi Arabia,121,Scandinavia,6,Science & Technology,329,SCO,5,Scotland,6,Scud Missile,1,Sea Lanes of Communications,4,SEBI,1,Securities,1,Security,6,Semiconductor,2,Senate,4,Senegal,1,SEO,3,Serbia,4,Seychelles,1,SEZ,1,Shale Gas,4,Shanghai,1,Sharjah,12,Shia,6,Shipping,5,Shutdown,1,Siachen,1,Sierra Leone,1,Signal Intelligence,1,Sikkim,4,Silicon Valley,1,Silk Route,6,Simulations,2,Sinai,1,Singapore,11,Situational Awareness,16,Smart Cities,7,Social Media Intelligence,40,Social Policy,39,Social Science,1,Socialism,1,Soft Power,1,Software,7,Solar Energy,11,Somalia,5,South Africa,18,South America,45,South Asia,396,South China Sea,30,South East Asia,58,South Korea,41,South Sudan,4,Sovereign Wealth Funds,1,Soviet,2,Soviet Union,7,Space,38,Space Station,2,Spain,8,Special Forces,1,Sports,2,Sports Diplomacy,1,Spratlys,1,Sri Lanka,20,Stamps,1,Startups,43,State of the Union,1,STEM,1,Stephen Harper,1,Stock Markets,15,Storm,2,Strategy Games,5,Sub-Sahara,3,Submarine,13,Sudan,5,Sunni,6,Super computing,1,Supply Chain Management,37,Surveillance,8,Survey,5,Sustainable Development,14,Swami Vivekananda,1,Sweden,3,Switzerland,3,Syria,111,Taiwan,16,Tajikistan,11,Taliban,15,Tamar Gas Fields,1,Tanzania,4,Tariff,4,Taxation,22,Tech Fest,1,Technology,13,Tel-Aviv,1,Telecom,21,Telematics,1,Territorial Disputes,1,Terrorism,73,Testing,2,Texas,3,Thailand,6,The Middle East,601,Think Tank,285,Tibet,2,TikTok,1,Tobacco,1,Tonga,1,Total Quality Management,2,Town Planning,2,TPP,2,Trade Agreements,13,Trade War,9,Trademarks,1,Trainging and Development,1,Transcaucasus,16,Transcript,4,Transpacific,2,Transportation,39,Travel and Tourism,4,Tsar,1,Tunisia,7,Turkey,73,Turkmenistan,9,U.S. Air Force,3,U.S. Dollar,1,UAE,130,UAV,21,UCAV,1,Udwains,1,Uganda,1,Ukraine,89,Ukraine War,3,Ummah,1,UNCLOS,6,Unemployment,1,UNESCO,1,UNHCR,1,UNIDO,2,United Kingdom,67,United Nations,27,United States,626,University and Colleges,4,Uranium,2,Urban Planning,10,US Army,8,US Army Aviation,1,US Congress,1,US Navy,15,US Postal Service,1,US Space Force,2,USA,16,USAF,18,UUV,1,Uyghur,3,Uzbekistan,11,Valuation,1,Vatican,1,Vedant,1,Venezuela,18,Venture Capital,3,Victim,1,Videogames,1,Vietnam,18,Virtual Reality,7,Vision 2030,1,VPN,1,Wahhabism,3,War,1,War Games,1,Warfare,1,Water,16,Water Politics,6,Weapons,10,Wearable,2,Weather,2,Webinar,1,WEF,2,Welfare,1,West,2,West Africa,17,West Bengal,2,Western Sahara,2,Whitepaper,2,WHO,3,Wikileaks,1,Wikipedia,1,Wildfire,1,Wildlife,2,Wind Energy,1,Windows,1,Wireless Security,1,Wisconsin,1,Women,10,Women's Right,10,Workshop,1,World Bank,26,World Economy,24,World Peace,10,World War I,1,World War II,3,WTO,6,Xi Jinping,8,Xinjiang,1,Yemen,26,Zbigniew Brzezinski,1,Zimbabwe,2,
ltr
item
IndraStra Global: B&E | Sapient-related Charge tips Publicis into loss before CEO switch
B&E | Sapient-related Charge tips Publicis into loss before CEO switch
CEO Maurice Levy to hand over reins to Arthur Sadoun on June 1
https://3.bp.blogspot.com/-M92itkBKv2A/WJ1YXpf_a4I/AAAAAAAAOIQ/eZhGBgBvf2oO5VBpl3Gii8ZTQBqSZpUFgCLcB/s640/_vector-stock-market-graphs-preview2-by-dragonart.png
https://3.bp.blogspot.com/-M92itkBKv2A/WJ1YXpf_a4I/AAAAAAAAOIQ/eZhGBgBvf2oO5VBpl3Gii8ZTQBqSZpUFgCLcB/s72-c/_vector-stock-market-graphs-preview2-by-dragonart.png
IndraStra Global
https://www.indrastra.com/2017/02/BE-Sapient-related-charge-tips-Publicis-into-loss-before-CEO-switch-003-02-2017-0033.html
https://www.indrastra.com/
https://www.indrastra.com/
https://www.indrastra.com/2017/02/BE-Sapient-related-charge-tips-Publicis-into-loss-before-CEO-switch-003-02-2017-0033.html
true
1461303524738926686
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content