Credit: Jonathan Borba via Unsplash
A record number of client wins, and few losses, will cushion Publicis Groupe from being Trumpled in the fallout from the global trade war.
The company reported net revenue up 9.4% to €3.535 billion in the March quarter, with all regions performing well despite a “challenging” global context. Organic growth came in at 4.9%.
The France-based global advertising company says it is well on track to reach its 4% to 5% organic growth guidance for the full year.
And 4% is a "rock solid" low point. Organic growth could reach 5% if clients regain visibility on the economic landscape, leading to fewer cuts in traditional ad spend.
“Our new business momentum sharply accelerated over Q1 (March quarter) as we topped the new business chart for the sixth year in a row,” CEO Arthur Sadoun told analysts in a briefing.
“For the quarter, we ranked first on new business with net media billings 10 times higher than the second place competitor, while the rest of our peers are negative, according to JPMorgan.
“To cut a long story short, we had a dozen material wins while not losing any significant clients.”
And this will offset the potential impact of a deteriorating economic environment.
“Many of our clients are facing a very challenging situation due to uncertainty on tariffs, rising inflation, and a geopolitical context that is more volatile than ever,” said Sadoun.
“This tough environment has not materialised in our number with March being the strongest month of the quarter. But like everyone else, we could experience cuts from several clients across many industries for the rest of the year.
“This raised one very legitimate question. Is our strong performance sustainable in today's environment? The answer is yes.
“We have never been so strong despite such an uncertain context for one main reason. We have built the products and the services that our clients need to drive profitable growth in good times and particularly in more challenging times.”
A slide from Publicis' presentation to analysts:
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.