Emirates a bright spot for Publicis

Publicis, the world's third-largest communications group, says its business expanded in the Emirates in the first three months of the year although it was hit by unrest elsewhere in the Arab world.

The company, based in Paris, reported revenues of €29 million (Dh155m) in the Middle East and Africa region in the first quarter of the year, up 3.6 per cent on the same period last year.

"The recent events hurt business in the region, except in the United Arab Emirates, where Publicis posted 7 per cent growth," the company said.

The region was the company's worst-performing globally, with Publicis reporting total worldwide revenues of €1.28 billion in the first quarter, up 10.7 per cent on the same period last year.

Publicis owns several global advertising and media agencies, including Leo Burnett, Saatchi & Saatchi and Starcom MediaVest.

Maurice Levy, the chief executive of Publicis Groupe, told the EuroBusiness Media website the regional unrest in parts of the Arab world had affected the group.

"Africa and the Middle East is a little bit troubled, and growth in this region is impacted by the fact that in Egypt there is not much [activity]," he said.

"Saudi Arabia is slowing down seriously for a while, and I guess this will continue for the next quarter. Otherwise, when you look at the other countries, things are picking up nicely."

Alex Saber, the chairman in the Middle East and North Africa of the Vivaki Group, which is part of Publicis and comprises the media agencies Starcom MediaVest and ZenithOptimedia, acknowledged unrest in Egypt and Libya had hit the advertising industry.

"We're quite optimistic about the business in the GCC. In the remaining markets - North Africa and Syria - we're cautious because of the local unrest," said Mr Saber.

He said turmoil in Egypt resulted in the advertising business suffering "a significant drop in February".

However, growth in the UAE of 7 per cent was indicative of the positive performance of the advertising market in the GCC, he said.

"In the GCC, things are looking extremely positive," he said. "The turbulent times in North Africa have affected some markets. But there has been minimal or no effect in the GCC." Growth in the Gulf markets marks "a continuation of an upward trend that started in early 2010", he said.

"[There was] strong organic growth, more specifically among our multinational businesses. Local business also grew; it has started recovering," he added.

Last year, Publicis Groupe posted revenue of €5.42bn, up 20 per cent from 2009.

Mr Levy said the first quarter of this year had been positive, although markets such as Japan and Australia were hit due to natural disasters.

bflanagan@thenational.ae