Publicis increases organic growth guidance for the year despite ‘persistent macroeconomic uncertainties’

Publicis Groupe delivered robust organic growth in the second quarter and raised its outlook for the full year. The holding company posted organic growth of 7.1% for the second quarter, matching its 7.1% first-quarter organic growth. Ad Age Best Places to Work Recognizing employers in advertising and marketing Enter here Publicis adjusted its organic growth guidance for the full year to 5%. This is a more optimistic outlook than its previous guidance of 3%-5% despite “persistent macroeconomic uncertainties” in the market, according to Publicis CEO Arthur Sadoun. The company’s solid organic performance was driven by data and tech units Epsilon and Publicis Sapient as well as new business activity in 2022 that led to revenue growth this year, Sadoun said. “We do see some cut in traditional advertising around the world,” Sadoun said. “We do see some slowdown in the decision process of some business transformation projects. But our revenue mix and our ability to continue to win market share, which we did even recently with [pharma marketer] Pfizer or [luxury goods seller] LVMH, for example, makes us confident to sustain high-level goals and deliver 5% [organic growth] despite the difficulties.” Organic growth strips out acquisitions, divestitures and the effects of exchange rates. Sadoun made it a point to tout Publicis’ data and tech capabilities as the industry continues its conversations around artificial intelligence. “You don't have one day without someone in the industry making an announcement about a new partnership in AI,” Sadoun joked. “In Cannes it was four times a day roughly. We of course have our own partnerships and we have them with big platforms like Microsoft for OpenAI, and Adobe for Firefly… but the big difference point is that we have invested 10 billion [euros; about $11 billion] in Sapient, Epsilon, Marcel and other technology and data assets that puts AI really at the core.” “AI without tech and data is nothing,” Sadoun added. Related: Publicis Groupe claps back at Marcel AI critics By the numbers Other holding companies Omnicom Group posted its own results for the second quarter on July 18. The holding company reported second-quarter revenue of $3.61 billion. Omnicom’s organic revenue grew by 3.4%, and the company slightly increased its organic growth guidance for the year to the range of 3.5%-5% (up from previous guidance of 3%-5%). Omnicom shares climbed to an all-time high of $99.23 July 18 before the company's earnings call. Omnicom released its results after the market closed. Omnicom's stock tumbled 10.4% to close at $87.78 July 19, the first day of trading after its earnings release. Interpublic Group of Cos. is slated to post earnings July 21. WPP has scheduled its earnings release for Aug. 4.

Publicis increases organic growth guidance for the year despite ‘persistent macroeconomic uncertainties’

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