Ben Bold
Jul 19, 2019

Publicis Groupe reports 15% hike in first-half profit

Group's performance held aloft by strong results in Asia, Europe and Middle East.

Arthur Sadoun
Arthur Sadoun

Publicis Groupe has reported a boost in the first six months of 2019, increasing its net revenue by 1.7% to €4.35 billion (US$4.9 billion) compared with the same period last year.

The French-owned advertising holding group—which owns agencies including Publicis, Leo Burnett, Bartle Bogle Hegarty, Saatchi & Saatchi, Starcom and Zenith—performed strongly in Europe, Asia and the Middle East, but less so in the US and Latin America.

Its performance resulted in significant profit growth for the six months ending 30 June. Group profit (net income) was €354 million (US$398.8 million), a 14.6% increase year on year.

While growth across Europe was modest, with net revenue up 3.3% to €1.30 billion (US$1.46 billion), the group posted the strongest upsurge in the Middle East and Africa, where net revenue grew 23.6% to €152 million (US$171.2 million). Asia-Pacific recorded 5% growth to €444 million (US$500.1 million).

However, business was less buoyant in North America, where revenue was down 0.2% to €2.32 billion (US$2.61 billion), and in Latin America, where it fell 8.9% to €144 million (US$162.2 million).

Looking further ahead, Publicis expects to "post a sequential improvement" in the second half versus first-half organic growth.

New-business wins for Publicis' creative agencies included Barclays in the UK and Samsung in the UK and US, while digital agencies under the Publicis Sapient umbrella won Heathrow Airport in the UK.

Arthur Sadoun, Publicis chairman and chief executive, said the group's performance was helped by a more fruitful second quarter compared with the first, "with organic growth returning to positive territory".

"This growth is healthy and built on solid foundations, with the ramp-up of our Q4 new business and continued double-digit growth of our strategic game changers (+24% in H1).

"But our progress has been slowed down by the ongoing fee reduction on traditional advertising that continued to impact our overall US operations by around 300 [basis points] in the quarter. We have taken a major organisational step by accelerating the implementation of our country-model, which helps generating growth through cross fertilisation."

He singled out the UK and France for "where this model is already working very well".

Publicis has been busy on the acquisition front in the past six months. Its biggest-ever deal was concluded this month when it finalised the purchase of data marketing company Epsilon for $3.95 billion.

It said the deal would "turbocharge its creative, media and technology operations to accelerate growth".

Campaign UK

Related Articles

Just Published

1 day ago

Purpose, laughs, and boppable tunes: Spikes jury ...

SPIKES ASIA X CAMPAIGN: Presidents and members of several Spikes Asia juries share the top trends they spotted in the jury Zoom rooms, with video examples.

1 day ago

Crash Course: How to tell engaging short-form stories

To round off a week of creativity-themed content during Spikes Asia X Campaign festival, this Crash Course provides useful tips on how to build story arcs and create thumb-stopping campaigns for short-form.

1 day ago

Lessons from Tesla, Apple and yoga (yes, yoga) in ...

SPIKES ASIA X CAMPAIGN: Creatives need to drive relevance for sustainable options, instead of virtue-signalling about sustainability, argues Gulshan Singh of FCB Interface.

1 day ago

Spikes Asia Awards 2021: Campaign's contenders 3

As the juries make their final selections ahead of the March 1 winners announcement, Campaign Asia-Pacific's editorial team has once again scoured through the 2021 shortlist to pick out the work we expect to win.