Publicis Groupe registers 7.1% revenue growth in Q2FY23

Publicis Groupe has registered a 7.1% revenue growth in the second quarter of the current fiscal year ending December 31, 2023, on the back of continued sustained performance across the US (+5%), Europe (+15%) and China (+7%) and focus on digital marketing.

The holding company which constitutes Publicis Communications, Publicis Media, Publicis Sapient, and Publicis Health, has also raised targets to 5% against the previous bracket of 3-5% in its 2023 guidance despite persistent macro uncertainties.

It also updated its full-year operating margin forecast and now sees it close to the 18% posted in 2022, against a previous outlook of between 17.5% and 18%.

In H1 of FY23, while the holding company’s revenue summed up to € 7,105 million, up 8.5% YoY, the net revenue stood at € 6,318 million, up 7.6% YoY from € 3,073 million in 2022, leading to organic growth of 7.1% accompanied by a reported growth of 5.4%.

Of this net revenue, € 3,239 million was clocked in during Q2 of FY23 and Asia Pacific was up by 1.7% on an organic basis and remained flat on a reported basis.

The EBITDA which represents 21.1% of the net revenue of Publicis Groupe amounted to € 1,335 million in H1 2023, compared to 1,287 million euros in H1 2022, which is up by 3.7%.

As per Arthur Sadoun, Chairman and CEO, Publicis Groupe, the first half of the year has been strong for Publicis as the holding company continued to outperform the market in Q2 of FY23 on organic growth owing to the company’s revenue mix and new business track record with +7.1%, ahead of expectations after double-digit growth in 2022.

“We delivered the best financial KPIs in the industry in H1 thanks to our platform organisation, with an operating margin of 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,” he said.

He also went on to add that with Publicis Groupe’s investments in Epsilon, powering Creative and Media through personalisation at scale, Sapient and Marcel, the holding company is uniquely positioned to lead the future of the industry which will inevitably be shaped by data, tech and AI that are already at the heart of the company’s business model both in how they work for their clients and in the way they operate.

Furthermore, he also opined, “Publicis is not only future-proof but is also more resilient to business cycles, allowing us to upgrade our guidance on all KPIs for the year despite persistent macroeconomic uncertainty.”

“We now expect to deliver organic growth at circa +5% for 2023, above our 3Y CAGR of +4%, with an operating margin rate close to 18%. I would like to sincerely thank our clients for their continued trust and all our talent for their dedication throughout the last months,” he added.

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