On December 18th, 2017, Publicis Groupe reached a definitive agreement for the sale of 100% of Genedigi in China. As this sale is subject to authorizations to be obtained from the Chinese authorities, the sale should be finalized before the end of the first quarter of 2018.
The French multinational reported on 8th February 2018 revenue growth of -2.3% (organic growth of -1.5%)in Asia mainly due to some difficulties in China.
As reported in the Annual Results Communication corresponding to the Fyscal Year 2017, revenues in China declined by 7.6% due to difficulties encountered by an agency (the Groupe does not unveil the name, but may be Genedigi) currently undergoing a strategic review for which a full sale agreement was concluded at the end of 2017 (and which will materialize in the first months of 2018).
Not all news comming from Asia are so bad. Activity in Singapore grew by 4.4%. India is consolidating with growth of +0.4% in Q1 and +13.0% in Q2, followed by a further +3.9% and +5.2% in Q3 and Q4 2017 respectively.
Publicis Groupe experienced a 0.4% reduction in consolidated revenues and 0.7 decrease in marging in 2017. Despite this the French multinational achieved a 0.8% organic growth last year.
Shrinking in China since 2ndQ 2016
Publicis’ revenues from China are shrinking since 2ndQ 2016.
The French multinational, despite this, posted growth at 1.8% and organic growth at 1.5% in the Asian Region for the 2016 fiscal year, with decrease in CHina during the 2ndH 2016 at -6.0%.
It was Genedigi, as reported by the Groupe, the origin of this decrease by some difficulties that brought down the revenue from a healty 4.4% in the 1stH of the year in the Asian country.
Publicis acquired Genedigi Group, at that time one of China’s largest independent public relations and marketing communications
agencies in 2011. The Chinese company was aligned under the MSL Group tag.
Established in 1997, Genedigi Group employs 400 communications professionals across public relations, event marketing, digital marketing and an in-house market research center.
Working with both domestic Chinese and foreign brands, Genedigi supported a6 that time more than 50 clients across its offices in Beijing, Shanghai and Guangzhou.
Its clients roster included market leaders across China’s high growth industries, including automotive, fast-moving consumer goods (FMCG), information technology (IT), home appliances, banking and financial services.
Xiao Jun, Chairman and founder of Genedigi Group, kept on leading the Groupe, but reporting to Glenn Osaki, President of MSLGROUP Asia.
While the ainking in CHINA, Publicis posted in 2016 full year growth at 0.5% and 8.1% respectively in India and Singapore .
Image over the headline.- © Genedigi
