Shares in French advertising heavyweight Publicis have dropped by as much as 6 per cent in early morning trading after the company reported worse than expected third quarter results.
Publicis shares fell as much as 6.1 per cent to €63.40 this morning after the loss of a number of big accounts in the US last year ate into its earnings.
Third quarter revenue at the Paris-based agency came in at €2.3bn, down 0.4 per cent at actual exchange rates. On an organic basis, which tends to be the measure watched by analysts as it offers a picture of underlying growth, revenue was up 0.2 per cent compared to growth of 2.7 per cent in the previous three months.
Ian Whittaker, analyst at Liberum said:
Publicis has since been our least preferred agency as we see it having firm specific issues as well. We have concerns over its digital strategy, wonder if its negotiation power has softened on the back of the account losses in 2015 and its unfit integration capacity.
Shares in Publicis have climbed 25 per cent since hitting a yearly low in January.