Publicis Groupe SA, a French advertising company, said that it returned to profit in the first quarter of the fiscal. The company said that the first quarter profit was mainly attributable to the 3.1% growth in its revenue in the first three months of the fiscal, signaling a faster than expected recovery in the advertising industry.

Encouraged by the first quarter results, Publicis said that it expects to outperform the global advertising industry in the current fiscal. Publicis has also lifted its global hiring and salary freeze after returning to growth in the first quarter.

In its quarterly report, Publicis said that the organic revenue in the first quarter was reported of £1 billion, increasing by 3.1% comparing to the same quarter last year. The consolidated revenue was reported up by 8.1% comparing to the previous corresponding period. Publicis said that the growth in the organic revenue in the first quarter exceeded even its most optimistic forecasts.

Publicis, the owner of ad agency networks including Saatchi & Saatchi, reported that its first quarter organic revenue grew in every region in the world except Europe. In Europe, it was reported down by 1.5% in the first quarter.

However, Maurice Lévy, the chairman and chief executive of the company, said today that he decided not to renew his contract with Publicis. That means that he will not be working with Publicis by the end of 2011.