PARIS: French advertising and communications company Publicis Groupe reported that its consolidated revenue for the third quarter of 2016 was 2.315 billion euros, 0.4% below the 2.325 billion euros reported for the corresponding period in 2015.
Exchange rates impacted revenue negatively by 45 million euros, i.e. the equivalent of 1.9% of third-quarter 2015 revenue. Net acquisitions contributed 31 million euros to revenue in third-quarter 2016, i.e. the equivalent of 1.3% of third-quarter 2015 revenue. Growth at constant exchange rates was +1.5%.
Organic growth was 0.2% in the third quarter, below the growth rate at June 30 due to the more significant impact of media accounts lost in the 2015 media palooza – an impact that will remain high in Q4 – and to the end of several digital projects when new projects have not reached their full growth potential yet.
Publicis Groupe confirmed its previous guidance for 2016 in spite of the 250 to 300 basis point negative impact on the growth of the second half of 2016.
“On top, the fourth quarter is usually characterized by uncertainty surrounding advertisers’ budget management. We approach 2017 cautiously given the lack of visibility owing to elections in the US, France and Germany, and the consequences of “Brexit”, not just for the UK for also for the rest of Europe,” the company said.
The Management Board will be proposing that the 2018 objective of a 42% payout (compared with 39.5% in 2015) be brought forward in respect of financial 2016.
