Publicis Groupe Boosts Outlook After Strong Q3 Showing
Declaring itself “fully recovered” from the impact of the pandemic, Publicis Groupe posted strong Q3 results with organic revenue growth of 11.2% on reported revenues of €2.62 billion. For the first nine months of the year organic growth was 10.2% on reported revenue of €7.55 billion.
With the strong results the company boosted its full-year outlook for a second time and now expects to generate organic revenue growth of between 8.5% and 9% for the full year versus 2020, which would be 2% better than pre-pandemic 2019.
Prior to the pandemic both units were struggling a bit. But in Q3 both “overperformed” in the U.S. with Epsilon posting a 13% gain while Publicis Sapient was up 20%.CEO Arthur Sadoun said that the overall organic growth achieved by the firm in Q3 was a strong indicator that the company was back on track. But he also pointed to strong results at the holding company’s big data and business transformation subsidiaries, Epsilon and Publicis Sapient respectively, as equally important indicators that it has created the right model and menu of capabilities to best serve clients going forward.
“We have a product and service offering that uniquely positions us to respond to our clients’ needs” said Sadoun, “and help them address and lead the major revolutions in the industry from the disappearance of third-party cookies, the acceleration of advanced TV and retail media, and on the ongoing rise of direct-to-consumer channels.”
The firm has also posted a strong showing on the new business front through the first nine months of the year, winning huge accounts like auto giant Stellantis, Samsung and Walmart among others.
All regions in the third quarter turned in double-digit organic growth performances with the U.S. at 10.9%, Europe at 10% and Asia at 12.5%.
And overall Q3 growth outpaced the same quarter in 2019 by 5%, while the U.S. showed a gain of 8% and Asia was up 2%. Europe was flat over the two-year period.