Publicis Raises Organic Growth to 5% in Third Quarter

what happened

Newsmetry API reports that Publicis Groupe’s organic net revenue rose 5% in the third quarter, up from the 4.8% growth recorded in the previous quarter. Group revenue reached 4.61 billion euros ($5.14 billion), a 12% increase on a reported basis. Analysts had expected organic growth of 4.8%, according to the company’s consensus estimates. The metric excludes the effects of currency movements, acquisitions and asset sales.

Publicis said market-share gains following the combination of Omnicom Group and Interpublic were supporting its prospects for next year. Last month, the group won PepsiCo’s global media account, previously held by Omnicom, although analysts do not expect the assignment to contribute to Publicis’ revenue until next year. Chairman and Chief Executive Arthur Sadoun said business momentum was strong across all areas.

The company maintained its forecast for full-year organic net revenue growth of 4.5% to 5% and expects fourth-quarter performance to remain within that range. The result reflected gains in the media and creative segments, while technology-consulting arm Sapient returned to growth in the U.S. last quarter. Publicis expects that improvement to extend to the rest of the unit’s global operations in the fourth quarter.

why it matters

The figures underline Publicis’ continued performance against traditional advertising rivals as industry consolidation changes the competitive landscape and clients redirect spending toward artificial-intelligence-powered marketing. The recovery at Sapient may also ease pressure on the technology business.

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