Publicis Q4 FY2018 net revenue was 2,492mn euro up by 0.4%
Publicis Groupe reported organic growth of +0.8% in 2018, despite attrition in traditional advertising in the USA. The group also confirmed its 2020 objective of +4% organic growth
Published - 07-February-2019
Publicis, the world’s third-largest communications group, announced its full year results for 2018. Arthur Sadoun, Chairman and CEO of Publicis Groupe announced a better than expected profits for 2018. Publicis Groupe’s Net revenue in Q4 2018 was 2,492 million euro, up 0.4 per cent from 2,483 million euro in 2017.
At constant exchange rates, growth was +0.2 per cent after inclusion of the positive impact of exchange rate variations (5 million euro or +0.2%). Net acquisitions contributed 11 million euro to Net revenue in Q4 2018 (including the deconsolidation of Genedigi from January 1, 2018).
Organic growth was -0.3 per cent in Q4 2018. When PHS is factored out, growth was +0.5 per cent in the fourth quarter.
Growth was therefore slower than in Q3 due to negative impact of the usual year-end volatility and the higher than-expected rate of attrition in the traditional advertising business, notably in the FMCG sector in the US.
Organic growth nonetheless benefited from the ramp-up of accounts won in Q1 2018 - notably those of Daimler, Carrefour, Campbell’s and Marriott – which contributed 150 basis points.
Net Revenue in full year 2018
Publicis Groupe’s Net revenue for the full year 2018 was 8,969 million euro, compared with 9,332 million euro in 2017, i.e. a 3.9 per cent decrease. At constant exchange rates, growth was +0.1 per cent but the actual impact of exchange rate variations was a negative 4.0 per cent or 374 million euro. Net acquisitions contributed 5 million euro to Net revenue in 2018 (including the deconsolidation of Genedigi from January 1, 2018).
Organic growth was +0.1 per cent in 2018. It was +0.8 per cent without PHS. This includes 28 per cent growth of Net revenue from the Strategic Game Changers, i.e. an organic contribution to Net revenue of close to +240 million euro, but also the 150 million euro impact of attrition.
“2018 was a productive year for Publicis. We clearly led the change in our industry, demonstrating that we have the model to win today and tomorrow, and a transformation roadmap to continuously increase shareholder value. We are posting a record year both commercially with a disproportionate share of new business wins, and financially with the highest EPS ever. There are four key highlights of 2018: new business, financial performance, organic growth and transformation,” said Sadoun.