Publicis Raises Guidance Again After Organic Growth Beats Expectations
Publicis Groupe raised guidance for the second time this year after third-quarter organic revenue growth beat expectations, saying market-share gains allowed it to offset a challenging economic backdrop.
The Paris-based advertising group said Thursday that it now expects organic net revenue growth to be between 5.5% and 6% this year, against its previous projection of around 5%, which had already been upgraded in July. Organic growth refers to the change in net revenue excluding the impacts of acquisitions, asset sales and currency movements.
For the September quarter, the company reported organic net revenue growth of 5.3% and beat analysts’ expectations of a 3.6% rise, according to a consensus estimate provided by Publicis.
The company, which owns agencies including Saatchi & Saatchi, Leo Burnett and Zenith, said its revenue mix and tailwinds from recent new-business wins drove organic growth in the quarter and enabled it to gain market share.
“This gives us the confidence to further upgrade our 2023 guidance, even in a context of rising global socioeconomic tensions,” Publicis Chairman and Chief Executive Arthur Sadoun said.
Publicis has in recent quarters bucked a slowdown in the advertising market that hit most of its peers as marketers turned more cautious on spending in the face of uncertainty about the global economy.