Top Story

e4m_logo.png

Home >> Advertising >> Article

Publicis Groupe Q2 sales up by 0.9% to 2.46 billion Euros

23-July-2016
Font Size   16
Share
Publicis Groupe Q2 sales up by 0.9% to 2.46 billion Euros

Publicis Groupe has announced its Q2 earnings; the France-based advertising agency holding company warned the next quarter is going to be “difficult.”

Sales rose 0.9% to 2.46 billion euros ($2.7 billion), while organic growth — which is the measure the industry usually uses to measure success as it strips out the effects of acquisitions and currency fluctuations — was up 2.7%.

Publicis Groupe’s consolidated revenue for the second quarter of 2016 was 2.462 million euro, up 0.9% from 2,439 million euro in Q2 2015. Exchange rates impacted revenue negatively by 85 million euro, i.e. the equivalent of 3.5% of Q2 2015 revenue. Net acquisitions contributed 44 million euro in revenue in Q2 2016, the equivalent of 1.8% of Q2 2015 revenue. Growth at constant exchange rates was +4.6%.

Organic growth was +2.7% in the second quarter, buoyed by the growth of digital activities (+5.1%). Development efforts allowed to significantly mitigate the impact of the loss of media accounts of 2015. However, the impact of these losses should be much greater in the third quarter.

Over the first half-year, Publicis Groupe’s consolidated revenue totaled 4,753 million euro compared with 4,542 million euro in 2015, i.e. an increase of 4.6%. The impact of exchange rates was a negative 105 million euro, i.e. the equivalent of 2.3% of H1 2015 revenue. Net acquisitions contributed 191 million euro to revenue in the first half of 2016, i.e. the equivalent of 4.2% of H1 2015 revenue. Growth at constant exchange rates was +7.1%, and organic growth stood at +2.8% for the first half of 2016. It should be noted that the Healthcare sector performed well, and that the Media business continued the sustained momentum built up in Q1 2016 despite the impact of the accounts lost in 2015.

Europe grew its revenue by 6.3%. When the impact of acquisitions and exchange rates is factored out, organic growth was +5.5%. Over the entire region, digital achieved strong growth (+12.5%). France continued to perform well (+5.0%) and Germany and Italy continued their strong momentum (growth in the region of 9%), shored up by better economic situations. The situation was volatile in Russia with 4.6% growth at June 30, after 9.4% in the first quarter. The situation is much improved in the UK where growth was 3.6% in H1 (7.4% in Q2).

North America reported growth of 5.9% with organic growth standing at +1.4%. This growth stemmed mainly from the media and health businesses. Growth was nevertheless impacted by the 2015 media account losses (Mediapalooza). Asia Pacific achieved reported growth of 3.5% and organic growth of 4.7%, with good levels of performance in Greater China (+4.4%).

During the first six months of 2016 Publicis Groupe implemented the most fully integrated organization in the entire sector, bringing down the curtain on the traditional holding company structure with siloed communications groups. For Publicis Groupe, the goal is to help clients by providing them with the means to succeed in their own transformation and optimize marketing performance through access to all of the Groupe’s capabilities across the “Power of One” organization.

Commenting on the results, Maurice Lévy, Chairman and CEO of Publicis Groupe said, “This first half-year has ended very satisfactorily. First with the results: organic growth of close to 3%, an operating margin at 13% and a double digit increase of our free cash flow. Next the implementation of our new structure, the “Power of One” by the end of June, as expected. The transformation process launched in December 2015 has completely changed our approach to communications and our understanding of the way our clients work in taking on the challenges of the future. This transformation means we can anticipate our clients’ expectations with an “end-to-end” offering that provides them with full access to the Groupe’s resources including our skills in consulting and technology.”

“I would like to express my gratitude to all our people who have had to contend with We should not be heavily impacted from the Brexit. Since we operate in the UK in local currency, as we do in all the countries in which we have operations. We remain very confident about reaching our 2018 objectives, and believe that we will start to see and feel the benefits of our transformation more fully as of 2017,” he added.

Our typical marketing budget is usually 10 per cent of the topline spend

There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=http://www.exchange4media.com/company/news/amaz...

The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.

<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...

The interesting animated rap music video encapsulates Droom’s ecosystem tools and their role in facilitating second-hand automobile transactions

Perfumes are invisible and these new ads from Skinn create a story out of this

New campaign aims at first-time users by providing ‘first-night free’ – a first-ever offering by the brand on online hotels booking