Publicis Romania, part of French Publicis group, is expecting total business in 2007 to rise by 27 percent, after a 2006 drop to €1.3 million in revenues. 

Publicis Romania’s turnover in 2006 dropped 10 percent, to €12.2 mln, from its year-on-year level of some €13.5 mln, according to the Finance Ministry, confirmed for Business Standard by Publicis Romania’s General Manager, Teddy Dumitrescu. Net profits increased in 2006 to €171,000 from €85,000 year-on-year.

In 2006, Publicis restructured some of the existing contracts and switched to agency fee contracts; this also meant that entire clients budgets for contracts based on monthly fees for strategy, creation, brand management and production contracts, passed through Publicis accounts. 

“This led to a drop in turnover, as well as a rise in operational and gross profits. Furthermore, new clients and regional projects for existing clients also contributed to the increase in operational profits,” said Dumitrescu. In 2006, Publicis lost the Germanos, FinansBank, and AnchorGroup accounts, but gained contracts for Nestlé ice cream and wafer divisions, and milk maker Fulga. Dumitrescu is expecting Publicis to post post some €15.5 mln in revenue for 2007. The Publicis Romania group is made up of the full-service advertising agency Publicis Romania, marketing service agency Publicis Dialog, event organizer Publicis Events, and Publicis Healthcare, the latter specializing in medical and pharmaceutical products advertising. Financial results do not include Publicis Dialog, Publicis Events, and Publicis Healthcare.

Publicis ranks fourth among advertising groups worldwide. Publicis Romania, Leo Burnett & Target, Saatchi & Saatchi, Opti Media, Zenith Media, Starcom and Starlink represent Publicis Group in Romania.