Publicis posts strong start to 2023, beats revenue expectations

Chris Pash
By Chris Pash | 20 April 2023
 
Credit: Sam Mathews via Unsplash

Publicis Groupe reported better than expected March revenue of €3.458 billion, representing organic growth of 7.1% in the face of “challenging” economic conditions.

The French company says data and technology helped it grow faster than both the industry and the global economy in the last three years.

The global advertising group is now "increasingly confident" that organic growth for the full year will come in at the top half of its 3% to 5% guidance.

The company is the second global holding group to report March quarter results.

Omnicom this week posted “solid” organic growth of 5.2% in the March quarter and was on track to hit full year targets of 3%-5% organic revenue growth 

Reported revenue in the three months increased $US33 million, or 1%, to $3.443 billion, slightly better than Wall Street analysts expected.

At Publicis, the US market continued to deliver in the first three months of the year with 5.8% organic growth. Europe was up 12.3% and China 3.7%.

Australia posted 5.4% organic growth.

CEO Arthur Sadoun says the company posted a “strong” start to 2023.

“Since 2019, we’ve expanded our first quarter net revenue by 45% on a reported basis, of which 18% organically.

“Putting this performance in perspective, the groupe has actually changed dimension in recent years, rising to the number 2 position in the industry in terms of revenue.

"Our differentiated revenue mix, with one third in data and tech, allowed us to grow faster than both the industry and the global economy in the last three years.

“Not only do those capabilities at scale lead us to outpace competition, but they also set us apart in the way we go to market.

"With Epsilon’s real time data and Publicis Sapient’s technology embedded in our Creative and Media offerings, our New Business momentum continued in Q1 after topping the leagues 4 times in the last 5 years, with recent wins like Adobe or Walgreens Media, Sonepar Business Transformation, Mondelez Production and Dunkin US Creative.

"It is this differentiated revenue mix, our go-to-market and our platform organization, allowing us to invest in growth while delivering industry-high margins, which drive our confidence to achieve all of our 2023 KPIs guidance."

 

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