Publicis Groupe Scores Big Revenue, Organic Growth Gains

Publicis Groupe on Thursday reported a revenue gain of nearly 10% in the second quarter to approximately $2.3 billion, with organic growth of 5%. For the first half of the year, the Paris-based ad holding company reported an 8.7% gain in revenues to approximately $4.4 billion, with organic growth of 3.2%.

By comparison, Omnicom -- also reporting second quarter and first-half results today -- said it achieved 2.8% organic growth for both periods.

Publicis Groupe turned in significantly higher organic growth -- considered a key performance metric for the industry -- compared to a year ago. Last year, it reported a relatively meager 1.6% growth figure for the second quarter of 2012. Then it attributed the low growth to European economic woes.

Publicis CEO Maurice Levy attributed the strong results this time around to the company’s overall strategy, which includes expansion in faster-growing markets and a focus on digital, as well as the company’s “agile and mobile organization.”

Levy said that the company’s investments in the digital sector are “proving very promising.” Digital revenues were up 13.4% in the second quarter and just over 11% in the first half. Digital now accounts for about 37% of the company’s total revenue, he said.

Still, Levy said, the positive results “should be put into the perspective of an unpropitious economic situation, fierce competition and an uncertain business environment. The emerging countries are slowing; Europe is struggling to get back on the road to growth, while the USA is consolidating its upturn.”

In Europe, the company posted a second-quarter revenue increase of nearly 13%, although organic growth, which excludes acquisitions, divestitures and currency fluctuations, in the region was down 1%. In North America, revenues were up 9% with organic growth of nearly 8%.

The company reported net new business for the first half of $2.8 billion. Wins included the $1.1 billion American Honda Motors media planning and buying assignment to MediaVest in March.

The company said it expects to achieve organic growth for full-year 2013 “in the region of 3.6%,” which would be higher than the 2.9% achieved last year. The higher growth, if achieved, would be due largely to the U.S. recovery and the company’s digital sector growth

advertisement

advertisement

.
Next story loading loading..