First Quarter 2024 Revenue
Very strong start to the year
Sustaining momentum
Gaining market share
April 11, 2024
- Sustained momentum: Q1 2024 organic growth at +5.3%, above expectations
- Solid performance across all regions:
– Continued strong growth in the
–
–
- 8th consecutive quarter delivering highest growth in the sector1, leading to market share gains
- Confirming 2024 guidance, continuing to grow twice as fast as the industry average1
Q1 2024
| €3,711m |
| €3,230m |
| +5.3% |
| +4.9% |
1 Based on consensus.
“Publicis had a very strong start to 2024, sustaining growth momentum despite ongoing macroeconomic tensions.
We accelerated on our organic growth this quarter, delivering +5.3%, ahead of expectations.
There were three clear drivers of this performance.
First, our ability to capture a disproportionate part of the increasing demand for data-led marketing transformation, boosted by AI, in a soon-to-be-cookieless world. This translated into the double-digit growth of our combined Epsilon and Publicis Media offer.
Second, continued new business tailwinds, coming after we topped the league tables once again, and as we have for the past five years.
Last but not least, the impact of a clear rebound in the tech sector, where we saw double-digit growth this quarter.
Looking at the rest of our business, Publicis Sapient recorded sequential improvement, with positive growth in the
Creative further showed its resilience, posting single-digit growth driven by new business and production.
All of our regions performed well, with the notable acceleration of
After extracting ourselves from the pack in 2023, we clearly carried that momentum into Q1. We expect this to be our 8th consecutive quarter of delivering the highest growth in the industry, leading to material market share gains.
Now, looking at the rest of the year, we are focused on maintaining this dynamic.
In what is a still-challenging environment, our leadership in personalization at scale, our new business wins and our platform organization, make us confident in confirming our 2024 guidance.
We once again expect to grow twice as fast as the industry average, while delivering the best financial KPIs.
I would like to take this opportunity to thank our clients for their trust and our people for their outstanding efforts.”
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NET REVENUE IN Q1 2024
Publicis Groupe’s net revenue in Q1 2024 was
Breakdown of Q1 2024 Net revenue by region
EUR | Net revenue | Reported | Organic | |
million | Q1 2024 | Q1 2023 | Growth | Growth |
2,008 | 1,938 | +3.6% | +4.8% | |
793 | 743 | +6.7% | +6.1% | |
266 | 250 | +6.4% | +6.2% | |
90 | 88 | +2.3% | +4.0% | |
73 | 60 | +21.7% | +7.8% | |
Total | 3,230 | 3,079 | +4.9% | +5.3% |
Net revenue in
Net revenue in
In
Net revenue in
Breakdown of net revenue at
|
On the basis of 3,033 clients representing 92% of Groupe net revenue.
NET DEBT AND LIQUIDITY
Net debt totaled
The Groupe’s liquidity position remains very solid at
ACQUISITIONS
On
On
GROUPE AI STRATEGY
On
Sitting at the center of the Groupe, CoreAI unifies and standardizes Publicis’ best-in-class proprietary data and combines this with 35 years of business transformation data and coding owned exclusively by Publicis Sapient. CoreAI makes these assets shareable and accessible to everyone across the Groupe, empowering them across five key disciplines: Insight, Media, Creative and Production, Software and Operations.
Publicis plans to invest
The roll out of CoreAI’s capabilities will continue iteratively throughout the year.
OUTLOOK
Despite ongoing macroeconomic uncertainties, and thanks to the strength of its unique model, Publicis is confident in its ability to deliver on all of the 2024 targets set at its full year 2023 earnings, with organic growth between +4% to +5%.
As detailed in February, the +4% is rock solid and factors in continued delays in business transformation projects, more reductions in advertising spend and a cautious stance on year-end budget adjustments. The higher end of the guidance at +5% is within reach assuming a faster ramp-up of clients resuming spend on digital business transformation projects and fewer cuts in classic advertising.
In Q2 2024, the Groupe expects solid organic growth within the full year range.
The Groupe also confirms its 2024 guidance on financial ratios, which will be maintained at the industry-leading levels, of 18% operating margin rate, including the Groupe’s Opex investment of
Disclaimer
Certain information contained in this document, other than historical information, may constitute forward-looking statements or unaudited financial forecasts. These forward-looking statements and forecasts are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These forward-looking statements and forecasts are presented at the date of this document and, other than as required by applicable law,
About
www.publicisgroupe.com | Twitter:@PublicisGroupe | Facebook | LinkedIn | YouTube |
Contacts | |||
Corporate Communications | + 33 1 44 43 70 75 | amy.hadfield@publicisgroupe.com | |
Investor Relations | + 33 1 44 43 74 88 | jean-michel.bonamy@publicisgroupe.com | |
Lorène Fleury | Investor Relations | + 33 1 44 43 57 24 | lorene.fleury@publicisgroupe.com |
Investor Relations | + 33 1 44 43 74 21 | maxine.miller@publicisgroupe.com |
Appendices
Net revenue: organic growth calculation
(million euro) | Q1 | Impact of currency at end (million euro) | ||
2023 net revenue | 3,079 | GBP (2) | 9 | |
Currency impact (2) | (29) | USD (2) | (22) | |
2023 net revenue at 2024 exchange rates (a) | 3,050 | Others | (16) | |
2024 net revenue before acquisition impact (b) | 3,212 | Total | (29) | |
Net revenue from acquisitions (1) | 18 | |||
2024 net revenue | 3,230 | |||
Organic growth (b/a) | +5.3% | |
(1) Acquisitions (Practia, Corra, AKA, ARBH), net of disposals
(2) EUR =
EUR =
Definitions
Net revenue or Revenue less pass-through costs: Pass-through costs mainly concern production and media activities, as well as various expenses incumbent on clients. These items that can be re-billed to clients do not come within the scope of assessment of operations, net revenue is a more relevant indicator to measure the operational performance of the Groupe’s activities.
Organic growth: Change in net revenue excluding the impact of acquisitions, disposals and currencies.
Net Debt (or financial net debt): Sum of long and short financial debt and associated derivatives, net of treasury and cash equivalents, excluding lease liability since 1st
Average net debt: Average of monthly net debt at end of month.
Find the press release here
Source: Publicis Finance Services
2024 GlobeNewswire, Inc., source