The new revenue of the holding company stood at 3,241 million euros in the third quarter of the current fiscal year as opposed to 3,237 million euros it clocked in the corresponding quarter, last year
Publicis Groupe registered a 5.3% growth in its net revenue by clocking in a sum total of 3,241 million euros in the third quarter of the current fiscal year ending December 31, 2023, owing to revenue mix and new business tailwind. The same stood at 3,237 million euros last year.
While the acquisitions (net of disposals) had a positive impact of 32 million euros this quarter, it was exchange rate variations that had a 189 million euros negative impact on the same.
Region-wise, it clocked in Organic growth of 3% in North America, 3.8% in Asia Pacific, 6.9% in Latin America, 10.7% in Europe and 18.2% in the Middle East and Africa.
The net revenue in the APAC region stood at Rs 288 million euros this time around as opposed to 303 million euros, resulting in a negative reported growth of 5%, led by the growth in India and Singapore by New Business wins. This was achieved despite a slower China which registered a negative organic growth of 2.5% due to delays in spend this quarter in a tougher macroeconomic context.
On an overall basis, it was Publicis’ Media arm that continued to experience strong new business momentum and grew high-single digit on top of double-digit last year. Similarly, the creative arm posted a resilient performance with organic growth in the low-single digits for the quarter
Also, data and tech activities for the holding company posted very solid growth overall with Publicis Sapient achieving a 1.2% organic growth despite a very strong comparable base of 18% in Q3 2022. Along with this, Epsilon also registered a strong performance which further accelerated to double-digits with 10.5% organic growth in Q3 after double-digits last year, benefitting from increased client demand for first-party data management.
The Groupe now aims to achieve a 5.5-6% organic growth for the full year as compared to last year’s wherein it registered a spike of 5%. For Q4FY23, it expects to grow between 3 and 5%.
In the company’s view, Publicis could more could move closer to the higher end of the guidance range or the desired organic growth if there are fewer cuts in classic advertising, a faster ramp-up in new business and some positive impact from increased client budgets in Q4.
As per Arthur Sadoun, Chairman and CEO, Publicis Groupe, it was owing to the media capabilities, which continued to gain market share, and Epsilon’s data offer that the holding company achieved high single-digit and double-digit growth respectively.
“All of our regions posted solid organic growth, with the US at 3.2% on top of double digits in the last two years, Europe at a standout 10.7% and APAC improving again at 3.8%. Looking at our journey since the pandemic, the acceleration of our growth amid persistent macroeconomic challenges is clearly visible, with Q3 at 22% compared to 2019 levels, coming after 20% in Q2 and 18% in Q1,” he said.
He then went on to add that he now expects to deliver +5.5% to 6% organic growth for the full year, while upgrading Publicis’ operating margin to 18% and free cash flow at close to 1.7 billion euros.
“For the rest of the year, we intend to lead what we believe to be the two major priorities for our industry today: bringing our teams back together in person, and accelerating the AI-ification of our operations, which we are uniquely able to do through Publicis Sapient,” he added.
