Publicis Groupe has upped its full year forecasts after recording better than expected 7.1% organic growth in the June Quarter.
The global advertising company attributed the performance to revenue mix and new business tailwinds.
The growth was twice that of Omnicom which yesterday posted organic revenue rising 3.4% for the June quarter.
Publicis reported net revenue of €3.24 billion.
Organic growth was 5% in the US, 15% in Europe and 7% in China .
Australia and New Zealand were "broadly flat" in the June quarter and up 2.4% on an organic basis in the six months to June.
CEO Arthur Sadoun says the first half of the year has been strong for Publicis.
“In Q2, we continue to outperform the market on organic growth thanks to our unique revenue mix and new business track record with +7.1%, ahead of expectations after double-digit growth in 2022,” he says.
“We delivered the best financial KPIs in the industry in H1 thanks to our platform organization, with operating margin at 17.3%, in line with the historically high level of 2022.
“As we shifted from a communication to a transformation partner for our clients, we are confirming that we have become a stronger company since 2019 with our net revenue up +45% on a reported basis and our operating margin up +68% over this period.
“With our investments in Epsilon, powering Creative and Media through personalization at scale, Sapient and Marcel, we are uniquely positioned to lead the future of our industry
“It will inevitably be shaped by data, tech and AI that are already at the heart of our business model both in how we work for our clients and in the way we operate.
“But Publicis is not only future-proof. It is also more resilient to business cycles, allowing us to upgrade our guidance on all KPIs for the year despite persistent macroeconomic uncertainty.”
Publicis now expects to deliver organic growth at +5% for 2023, up from 3%-5% on previous guidance, with operating margin rate close to 18%.
Key numbers for the June quarter and first half 2023:
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