Public Groupe has downgraded its outlook and now expects negative, rather than slightly positive, organic growth for the full year.
In an early market update, the advertising group says it now anticipate organic net revenue to fall by around 2.5% in 2019.
Next year the company expects organic net revenue to range between negative 2%, if current trends persist, and plus 1%.
"Our third quarter shows the two faces of our transformation, which have never been so extreme," says Arthur Sadoun, Chairman and CEO of Publicis Groupe:.
"On the one side, the cost of our transition is hurting short-term organic growth with a negative Q3 below our internal expectations.
"This is leading us to take a very cautious approach and reset our guidance for revenue this year."
Net revenue in the thrid quarter was euro 2.577 billion, a 17.3% increase on the same three months in 2018.
Organic growth came in at a negative 2.7%.
The company says it suffered from cuts from a handful of clients on traditional advertising mainly in the US.
The performance of media operations was softer than expected.
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