Oct. 27 (Bloomberg) -- Publicis Group SA, the owner of the Saatchi & Saatchi and Leo Burnett ad agencies, said third- quarter revenue declined 5.3 percent as the advertising market reached its lowest point during the recession.

Revenue fell to 1.05 billion euros ($1.56 billion) from 1.11 billion euros a year earlier, the Paris-based company said in an e-mailed statement today. Sales excluding currency swings and acquisitions fell 7.4 percent.

Publicis’s Chief Executive Officer Maurice Levy said he expects the company, the fourth-largest network of ad agencies worldwide, to gradually recover from the advertising slump that began late last year. He forecast several more negative quarters before a return to growth in the middle of 2010.

“During this upcoming period, Publicis Groupe anticipates a better performance than the market and will maintain its cost reduction actions,” Levy said in the statement.

Publicis won $4.8 billion of new business in the first nine months of this year, including contracts from TGI Friday’s Inc., Cadbury Plc and Procter & Gamble Co.

Third-quarter revenue from operations in Europe dropped 9.5 percent to 359 million euros, while sales dropped 5.3 percent in North America to 488 million euros and 12 percent in Asia- Pacific to 114 million euros.

ZenithOptimedia Group Ltd., a London-based ad buyer owned by Publicis, said this month global advertising fell more than anticipated in the first half and is predicted to decline by 9.9 percent this year to about $445 billion.

The group said in July the decline would be 8.5 percent. It said it cut its forecast after the largest media owners sustained average revenue declines of 13 percent in the first half. The rate of decline improved in the second half, and the market will hit bottom before the end of 2009, it said.

Publicis closed its acquisition of Microsoft Corp.’s Razorfish Internet advertising agency earlier this month. The French company bought Razorfish for 369 million euros, paying with 6.5 million shares and the balance in cash.

To contact the reporter on this story: Kristen Schweizer in London at kschweizer1@bloomberg.net

Last Updated: October 27, 2009 02:31 EDT