Publicis, Omnicom release half year report, record growth
By Abimbola Mohammed
Despite the continued macroeconomic challenges, inflation, and other challenges around the world, some of the biggest conglomerates in integrated marketing communication have recorded organic growth for the first half of the year.
The two companies Publicis Groupe and Omnicom, attribute growth to tech, Artificial Intelligences and Data.
According to a post on Publicis Groupe website, the media buying agency said it grew 7.1% organically in the second quarter, matching its Q1 performance and prompting the holding company to upgrade its growth guidance for the full year to 5%. That’s up from earlier guidance of 3% to 5%.
Q2 net revenue totaled 3.23 billion euros, up 5.4% and first half revenue was 6.3 billion euros, up 7.6%.
Globally, data unit Epsilon grew 6.8% in Q2 and digital transformation services provider Publicis Sapient was up 5.5%. That was on top of double-digit growth for both divisions in Q2 2022.
According to a statement by Arthur Sadoun, Chairman/CEO Publicis Groupe, on the website, he noted that the organic growth made by the company is the highest growth for this quarter among other big firms that have disclosed their gain for the half year.
Attributing the growth to data & technology, media and creative which contributed one-third of the company’s revenue. He said media was up double digits while creative operations had low single-digit growth in the quarter.
“The first half of the year has been strong for Publicis 7.1% growth achieved in Q2 was ahead of expectations after double-digit growth in 2022. With its investments in Epsilon, Sapient and Marcel, the company is “uniquely positioned. The industry’s future will inevitably be shaped by data, tech and AI that are already at the heart of our business model both in how we work for our clients and in the way we operate.”
Omnicom
Omnicom Group Inc. reported second-quarter profit of $366.3 million, on a per-share basis, the company said it had net income of $1.82. Earnings, adjusted for non-recurring gains, were $1.81 per share.
Total revenue in the second quarter of 2023 increased $42.7 million, or 1.2%, to $3,609.9 million. Worldwide revenue growth in the second quarter of 2023 compared to the second quarter of 2022 was led by an increase in revenue from organic growth of $121.4 million, or 3.4%. Acquisition revenue, net of disposition revenue, decreased $54.3 million, or 1.5%, primarily reflecting dispositions in the Execution & Support discipline in the first and second quarter of 2023. The impact of foreign currency translation was a decrease of $24.4 million, or 0.7%.
John Wren, Chairman and Chief Executive Officer, Omnicom, said: “Organic revenue grew 3.4% in the second quarter and 4.3% year-to-date, placing us comfortably within our expected range and driving strong growth in earnings per share while the balance of the year will continue to see economic uncertainty, we are entering a dynamic and exciting new era for our company.”
Wren added that, “Omnicom has secured leading positions in generative AI technologies and partnerships to deliver on our promise to achieve the best outcomes for our clients and increase the operational efficiency of our company.”
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