Business

Publicis raises full-year earnings forecast after third-quarter growth

Publicis Groupe SA

Strong demand for digital marketing services in the third quarter boosted the outlook for intrinsic revenue growth in 2021.

Paris-based advertising companies with agencies such as Saatchi & Saatchi, Leo Burnett and Spark Foundry predict that their intrinsic revenue in 2021 will increase by 8.5% to 9% year-on-year. Stated. .. Intrinsic revenue growth is a common indicator of removing the effects of currency fluctuations, acquisitions and disposals.

Publicis has raised its expected operating margin from 17% to just above 17%.

The company reported a 11% increase in organic growth in the third quarter. Arthur Sadoun, CEO, said in a statement that Publicis had recovered from the effects of the Covid-19 pandemic, with intrinsic revenues in the third quarter being 5% higher than in the 2019 comparison period. Said.

Intrinsic revenues increased 11% in the United States, 13% in Asia Pacific and 10% in Europe in the third quarter. Compared to two years before the pandemic, intrinsic revenues in the third quarter increased 8% in the United States and 2% in the Asia Pacific region, but remained flat in Europe.

According to the company, the data and technology capabilities of the third quarter benefited from the client’s investment in digital media, commerce, and direct sales initiatives, especially in the United States.

In the United States, third-quarter organic revenue increased 13% at marketing agency Epsilon and 20% at technology and digital marketing firm Publicis Sapient.

The results show the continued momentum of Publicis and the marketing and advertising industry in the face of turmoil during the pandemic as clients had to pause spending first and then navigate fluctuating situations. increase.

Most brands have resumed marketing efforts, but often focus on digital media, data, and analytics to better understand and reach consumers.

Publicis in the second quarter Reported a 17% increase With organic revenue.

Write to Alexandra Bruel alexandra.bruell@wsj.com

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Publicis raises full-year earnings forecast after third-quarter growth

Source link Publicis raises full-year earnings forecast after third-quarter growth

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