Publicis Groupe reports 7.6% growth in Q1 2013
Publicis Groupe Q1 results for 2013 show revenue growth of 7.6 per cent compared with Q1 2012, up from €1,452m to €1,563m, with the impact of exchange rates reported at -€19m which is equivalent to 1.2 per cent of revenue.
Organic growth of 1.3 per cent reflects two elements: the Q1 2012 unfavourable comparables (+4.1 per cent growth) and the sharp decline of Europe (-6.5 per cent after +3.6 per cent in Q1 2012). North American growth, however, was good at +4.4 per cent and in the BRIC+MISSAT countries (+5.5 per cent). Digital also posted strong Q1 growth of +8.5 per cent.
France and southern European countries continued to be the main risk areas due to the economic situation in Europe. Publicis Groupe has however seen its business grow mainly due to its exposure in North America which accounted for 50 per cent of revenue, as well as the BRIC+MISSAT countries and digital which settles as the Groupe’s main activity accounting for 37 per cent of total revenue (up four per cent from 33 per cent in 2012).
Advertising followed as the Groupe’s second largest earner at 29 per cent (down from 31 per cent in 2012), Media followed at 17 per cent (no change from 2012), and the SAMS – Specialised Agencies and Marketing Services – with 17 per cent (down from 19 per cent in 2012). Revenues from the high-growth countries remained stable as a percentage of total revenue (23.6 per cent), combined revenue from digital and the emerging economies came in at close to 60 per cent of the consolidated Q1 2013 revenue, in keeping with the Groupe’s 75 per cent medium-term goal.
Non-digital activities declined some 2.3 per cent (-8.3 per cent in Europe excluding Russia and Turkey).
Chairman and CEO of Publicis Groupe, Maurice Lévy, commented: “As I predicted, 2013 is turning out to be a difficult and contrasted vintage, with on the one hand the United States consolidating their growth and on the other Europe suffering. Our first quarter ended satisfactorily, and while 1.3 per cent organic growth may seem modest, it is above our internal objectives and compares with the strong growth recorded in the first quarter of 2012. This is particularly true for Europe with a 10 points gap between 2012 first quarter (+3.6 per cent increase) and 2013 (6.5 per cent decrease).
“The pipeline remains solid and comforts us in the Groupe’s ability to reach its objectives for 2013, namely to improve its margin and to outperform the market and our own 2012 in terms of organic growth.”
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Publicis Groupe is a French multinational advertising and public relations company, and is the oldest and one of the largest marketing and communications companies in the world, by revenue, headquartered in Paris.Find out more