Data and tech now account for a third of Publicis Groupe’s revenues
Financial results released by French holding company reveal significant growth among data and tech businesses.
Publicis published its full-year financial results today / The Drum
A third of ad agency holding company Publicis Groupe’s annual revenues now come from data and technology services, its full-year financial results show.
Chief executive officer Arthur Sadoun said, “we have been able to capture the shift in our clients’ spend towards first-party data management, commerce and business transformation,” leading to double-digit organic growth at Epsilon and Publicis Sapient.
Publicis is the parent company behind agencies such as Saatchi & Saatchi, Publicis.Poke and Leo Burnett.
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Net revenues across the entire group were up 19.9% in 2022, to €12.57bn ($13.8bn), while its operating margins widened to 18%, despite high staffing costs in recent years weighing on balance sheets. The business is offering shareholders a cash dividend of €2.9 per share.
Though organic growth in 2022 was 10.1%, Publicis has cut its expectations for 2023 and predicted between 3-5% growth by the end of the year, in part due to “uncertain” economic weather on the horizon.
“Today, the profound transformation we have been through means our business is firing on all cylinders, allowing us to outperform the market once again on every KPI,” said Sadoun.
In North America, Publicis agencies increased net revenue by 23%, partly aided by exchange rates that favored the Euro. Despite a recession in the final months of 2022, Publicis saw 22.3% growth in the UK and experienced “outstanding” performance in the last quarter of the year, with “solid” media and creative demand driving 38% organic growth. Meanwhile, the business posted 10.3% organic growth in central and eastern Europe, despite the war in Ukraine.
Despite the group’s heritage as a holding company for creative and media agencies, it saw strong performance at its data and tech businesses Epsilon and Publicis Sapient. These posted 12% and 18.5% organic growth, respectively. Now, one-third of Publicis revenue comes from areas not traditionally associated with advertising.
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Sadoun said the increased demand for business transformation services ignited during the pandemic had boosted its prospects. “Our go-to-market – positioning Publicis as a key partner in our clients’ transformation – means we have won more than our share of new business opportunities and topped the rankings for the fourth time in the past five years.
“None of this would be possible without the trust of our clients and the outstanding efforts of our people,” said Sadoun.