financetom
Business
financetom
/
Business
/
Advertising firm Publicis ups guidance after Q2 beat
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Advertising firm Publicis ups guidance after Q2 beat
Jul 17, 2024 11:09 PM

(Reuters) - French advertising group Publicis upgraded its organic growth guidance on Thursday after beating expectations for the second quarter, boosted by double digit growth in its Epsilon and Media branches.

Publicis' recent strong performance runs counter to a general slowdown in the advertising industry, seen as a bellwether for broader economic health.

The world's largest advertising group by market value now expects its organic revenue to grow between 5% and 6% compared to its previous guidance of +4% and +5%.

Publicis expects to reach the higher end of its guidance if clients end their "wait and see" attitude and increase spending in digital transformation, allowing its IT consulting unit, Sapient, to bounce back.

"There are many (clients) today who are waiting because of macroeconomic uncertainties and who are reluctant to spend capex to put this in place," Chief Executive Arthur Sadoun said in a call with journalists, adding the unit's performance in the United States in the past six months was a good sign.

The parent company behind agencies such as Leo Burnett and Saatchi & Saatchi reported a net revenue of 3.46 billion euros ($3.78 billion) in the second quarter, with an organic growth of 5.4%, above consensus of 4.8% and the 4-5% it forecast in April.

Publicis' Epsilon unit, which provides targeted advertising capacity, continued driving the group's performance thanks to individualised consumer profiling, Sadoun said, adding the group now has 250 million individualised profiles in the U.S.

Its performance in the Asia-Pacific region outpaced that in North America and Europe, achieving 7.7% organic growth, including 10.5% in China alone despite an "extremely complicated" macroeconomic context.

In the first half ending June 30, the group's core profit (Ebitda) rose 4.9% to 1.40 billion euros.

Rival Omnicom's results for the second-quarter also beat estimates amid ramp up of ad spending in the lead-up to the U.S. presidential election and events such as the Paris Olympics.

($1 = 0.9151 euros)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Honeywell strikes $2 bln deal to buy aerospace and defence firm CAES Systems, WSJ reports
Honeywell strikes $2 bln deal to buy aerospace and defence firm CAES Systems, WSJ reports
Jun 20, 2024
June 20 (Reuters) - Honeywell International ( HON ) has entered into a deal worth roughly $2 billion to buy aerospace and defense technology company CAES Systems from private-equity firm Advent International, The Wall Street Journal reported on Thursday, citing people familiar with the matter. (Reporting by Ananta Agarwal in Bengaluru; Editing by Janane Venkatraman ) ...
Market Chatter: Toyota Motor Pauses 6 Production Lines in Japan Over Parts Shortage
Market Chatter: Toyota Motor Pauses 6 Production Lines in Japan Over Parts Shortage
Jun 20, 2024
06:21 AM EDT, 06/20/2024 (MT Newswires) -- Toyota Motor ( TM ) would pause six production lines at five factories in Japan due to a shortage of parts, Reuters reported Thursday, citing a company spokesperson. The company will decide on Friday whether to resume production, according to the report. Toyota ( TM ) did not immediately respond to MT Newswires'...
Market Chatter: Carlyle Group, KKR Top Bidders for Discover Financial's $10 Billion US Student Loan Portfolio
Market Chatter: Carlyle Group, KKR Top Bidders for Discover Financial's $10 Billion US Student Loan Portfolio
Jun 20, 2024
06:24 AM EDT, 06/20/2024 (MT Newswires) -- Carlyle Group ( CG ) and KKR (KKR) are the top bidders for Discover Financial's (DFS) $10 billion US student loan portfolio, the Financial Times reported on Thursday, citing people familiar with the matter. The two private equity firms collaborating on their bid reflects these firms' interest to expand their appetite for credit,...
SIR Royalty Income Fund's Operating Entity Posts Lower Fiscal Q3 Adjusted Net Earnings
SIR Royalty Income Fund's Operating Entity Posts Lower Fiscal Q3 Adjusted Net Earnings
Jun 20, 2024
06:05 AM EDT, 06/20/2024 (MT Newswires) -- SIR Royalty Income Fund's (SRV-UN.TO) operating entity, SIR Corp., reported lower fiscal third-quarter adjusted net earnings due to higher cost of corporate restaurant operations. SIR Corp. booked fiscal third-quarter adjusted net earnings of $0.7 million, down from $4.7 million. Fiscal third-quarter net income and comprehensive income came in at $33 million, up from...
Copyright 2023-2026 - www.financetom.com All Rights Reserved