Publicis Groupe, winning the revenue growth league and steadily grabbing market share, has been giving its staff record high bonuses along the way.
Publicis reported stronger than expected net revenue organic growth, with the June quarter lifting 5.6% to 3.458 billion Euros.
CEO Arthur Sadoun told analysts in a briefing that the company is also maintaining an operating margin guidance of 18% as well as free cash flow expectation of 1.8 to 1.9 billion euros.
All this “while sustaining our record high bonus pool” as in previous years.
He didn’t quantify the level of payouts to staff. However, personnel costs in the six months to June were roughly two thirds of net revenue
Publicis is also investing 100 million euros on AI.
“Currently, we don't see one client that is not excited and committed to an AI led transformation,” he said.
“We can't be more optimistic on what we are building on AI at the moment.”
However, the company wasn’t staying still in any area.
“We are making sure that we are investing and innovating to continue to outperform and every single discussing at the moment, which is bringing new talent on board and retaining the best talent we have thanks to our bonus pool,” Sadoun said
Publicis has upgraded its 2024 net revenue organic growth forecast to 5%-6%, from 4% to 5%, despite economic uncertainties.
“No one knows exactly when the rebound will really happen,” Sadoun told analysts.
“What I can tell you is that if it starts to benefit our competition, it will benefit us too. We have many projects that are already in the pipe that are just waiting for clients to gain confidence.”
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