© Reuters. File photo: Publicis Group’s logo can be seen at the gathering of high-profile start-ups and high-tech leaders at Viva Tech in Paris, France on May 16, 2019. REUTERS/Charles Platiau
(Reuters)-French Publicis said on Thursday that after organic growth in the second quarter exceeded market expectations and the level of 2019, its financial situation will be fully restored to pre-pandemic levels this year.
Following WPP (LON:) in the United Kingdom and Omnicom headquartered in the United States, the world’s third-largest advertising group was hit by the exhaustion of revenue streams from the entire market last year when customers cut advertising budgets to survive the COVID-19 crisis.
Publicis attracts new customers by promising targeted activities based on large amounts of data, and now expects to recover these losses a year earlier than expected.
“We assume that the demand for data and direct consumers will not stop due to the pandemic,” CEO Arthur Sadoun told reporters.
The United States is Publicis’ largest market and a source of more than half of its revenue. It increased by 15.2% in the three months to June, thanks to the strong performance of its digital business Sapient and data company Epsilon, an increase of 27% and They were 31%.
“When we saw the growth rates of Epsilon and Sapient, we were confident in our delivery capabilities,” Sadoun said.
At the group level, basic quarterly sales increased 17.1% to 2.54 billion euros ($3.0 billion), exceeding analysts’ expectations of an organic growth of 12.9%. They have also increased by 2% from two years ago.
Publicis is home to advertising agencies such as Leo Burnett and Saatchi & Saatchi, and the company said that the “excellent performance” is due to the new acceleration in the United States and continued growth in Asia. Both regions have increased by 7% compared to 2019.
With the lifting of the blockade, Europe has grown 23% from last year’s low base, but still lags behind the pre-pandemic level.
The company said that the growth in the first half of the year was due to the strong growth of a series of new businesses, such as Stellattis’ global media and Unilever (NYSE:) shopper marketing in the United States.
It forecasts an organic growth of 7% for the full year and an operating margin of 17%.
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