Publicis Groupe records strong organic growth in Q1
By Abimbola Mohammed
Publicis Groupe recorded a strong first quarter, reporting a 9.4% increase in net revenue to nearly €3.54 billion (approximately $4.01 billion) with organic growth (excluding currency and M&A impact) of 4.9%.
The company spent about $567 million on acquisitions during the first quarter including purchases of media agency Atomic 212, identity solution company Lotame and influencer marketing and content company BR Media Group.
According to the company, the full-year organic growth guidance of between 4% and 5%, is expected to fall within that range in Q2 as well. By comparison, the Groupe achieved 5.8% organic growth for the full year 2024.
Earlier this year it said the low end of the projection (4%) would be achieved in current market conditions. At the top end, the Groupe said it could deliver 5% if the macroeconomic environment improves, which would result in less cuts in traditional advertising and a resumption of client spend on digital business transformation projects.
North America net revenue was up 11.3%, with organic growth of +4.8%. The U.S. posted 4.1% organic growth. Media and creative both contributed to growth with the latter posting high single-digit gains fueled by new business and scope extensions. Digital transformation operations were down single digits in what the company called a “context of a continued ‘wait and see’ attitude from clients.
Asia Pacific reported 4.8% organic growth, and China remained a strong performer with 9.3% growth.
The Middle East & Africa and Latin America regions also posted double-digit organic growth.
Europe net revenue was up 4.3% and 2.7% organically, with gains in media and creative off-set somewhat by declines in digital transformation operations in several countries.
Arthur Sadoun, CEO Publicis Groupe, noted that: “We kick-started 2025 with a record new business run, with a dozen material wins across diverse sectors, geographies and expertise. That performance, offset the potential effects of the deteriorating macroeconomic context. It makes us extremely confident.
“We have never been in a stronger position to help our clients. Thanks to the best identity graph in the industry, they can accelerate their growth by building direct relationships with their customers and their prospects. With our unique connected media ecosystem, they can optimize their investments and link them to business outcomes. Our production backbone enables them to minimize waste, and maximize creative asset reuse.”
Publicis is the first of the four major holding companies to report Q1 results and its publicly traded shares rose nearly 4% in mid-day trading on the news.
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