24 C
Munich
Tuesday, July 27, 2021

Publicis Groupe Sees a Quicker Recovery as Organic Revenue Rises

Must read

It’s Time to Start Requiring Covid Vaccines

On Thursday, Kay Ivey, the unimpeachably conservative governor of a deep red state, treated her...

Will the Olympics ever truly welcome nonbinary athletes?

This story was originally...

GE and Raytheon Aren’t Yet Flying on All Engines

Jet engines are roaring back to life, but shouldn’t yet be declared ready for takeoff. ...

Canada at the Tokyo Olympics: Who’s competing Tuesday night, Wednesday morning – National

Canadian athletes will be busy competing in several events at the Tokyo Olympics Wednesday, including rowers and swimmers looking to come out on top...

Publicis Groupe SA reported a 17.1% increase in organic revenue in the second quarter, joining competitors in reporting significant growth over the dire second quarter last year, when advertisers paused spending amid uncertainty caused by the coronavirus pandemic.

During the same period last year, the Paris-based company reported a 13% decline in organic revenue, a common metric that strips out the effects of currency fluctuations, acquisitions and disposals.

Growth in the quarter this year was largely driven by the U.S. and Asia, where organic revenue rose 15.2% and 13.6%, respectively, the company said. Digital and data marketing firms were the main drivers of growth in the U.S., with data firm Epsilon generating a 31.1% increase in organic revenue and digital marketing and technology agency Publicis Sapient seeing a 27% gain.

Publicis said it is updating its guidance to reflect its recovery from the pandemic a year ahead of schedule. The company is expecting to achieve organic revenue growth of 7% annually and an operating margin of 17%, assuming there is no major deterioration in the health situation, it said.

The company, which owns ad agencies such as Spark Foundry, Saatchi & Saatchi and Leo Burnett, follows competitors

Omnicom Group Inc.

and

Interpublic Group of

Cos. in reporting second-quarter results reflecting a vast improvement in organic revenue compared with a year ago, when the pandemic led to client spending pauses and layoffs across ad holding companies.

The company, which beat revenue expectations, according to FactSet, chalked up its performance to an improving global economy and the strength of its digital and data operations, which are key for clients shifting investments toward data management, digital media and commerce.

Publicis last week announced the acquisition of CitrusAd, a software company that helps brands improve their marketing performance on retailer websites.

Net revenue, a metric that strips out pass-through costs such as media and production expenses that can be rebilled to clients, increased 10.7% year-over-year in the second quarter to 2.5 billion euros, equivalent to $2.95 billion.

Write to Alexandra Bruell at alexandra.bruell@wsj.com

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

It’s Time to Start Requiring Covid Vaccines

On Thursday, Kay Ivey, the unimpeachably conservative governor of a deep red state, treated her...

Will the Olympics ever truly welcome nonbinary athletes?

This story was originally...

GE and Raytheon Aren’t Yet Flying on All Engines

Jet engines are roaring back to life, but shouldn’t yet be declared ready for takeoff. ...

Canada at the Tokyo Olympics: Who’s competing Tuesday night, Wednesday morning – National

Canadian athletes will be busy competing in several events at the Tokyo Olympics Wednesday, including rowers and swimmers looking to come out on top...