Publicis Groupe has surpassed Omnicom Group as the second largest holding company in terms of revenue.
As per its recent earnings call, Publicis has brought in $14.9 billion in 2022 and $3.7 billion in Q1 2023, which is higher than that of Omnicom - which brought in $14.3 billion in the whole of previous year and $3.4 billion in the recently concluded quarter.
According to Publicis’ results, the holding company also has the largest market cap in its competitive set now - as it stands with more than $21 billion, juxtaposed to WPP’s market cap which has shrunk to $12.9 billion, followed by Omnicom which has stayed steady at $19 billion over the same period.
“After two years of double-digit growth, we posted a strong start to 2023,” said Arthur Saduon, Chairman and CEO, Publicis Groupe.
He also pointed out that in Q1, Publicis’ net revenue was up 10% again on a reported basis and organic growth was +7.1% owing to their strong performance in the US (+5.8%), acceleration to +12.3% in Europe and a solid +3.7% in China.
“Since 2019, we’ve expanded our first quarter net revenue by +45% on a reported basis, of which +18% organically. Putting this performance in perspective, the Groupe has actually changed dimension in recent years, rising to the number 2 position in the industry in terms of revenue,” he said.
Additionally, Saduon also stated that Publicis’ differentiated revenue mix, with one-third in data and tech, allowed the holding company to grow faster than both the industry and the global economy in the last three years.
“This continued to be the case in Q1 this year, with Epsilon and Publicis Sapient again accretive to our growth, at +10% and +11% organic, respectively. It was also visible in our Media and Creative activities, that were very solid in the quarter,” he said.
With this, he also anticipated that the organic growth for the year will come in at the top half of Publicis’ +3% to +5% guidance, while delivering 17.5% to 18% operating margin and around 1.6 billion Euros in free cash flow, despite an increasingly challenging macroeconomic environment.