Shares in Publicis Groupe are trading higher after the company announced an increase in its guidance for 2023 and reported better-than-expected organic revenue growth in the second quarter. At 0754 GMT, shares in the Paris-based advertising group were up 3.8% at EUR74.22.
Strong Second Quarter Performance
Publicis, the owner of agencies like Saatchi & Saatchi, Leo Burnett, and Zenith, reported a second-quarter organic growth of 7.1%. This pace of growth matches that of the first quarter. In comparison, U.S. peer Omnicom Group experienced a slowdown in organic revenue growth to 3.4% in the second quarter, down from 5.2% in the first quarter.
Factors Contributing to Success
Publicis Chairman and Chief Executive Arthur Sadoun attributed the company’s strong quarterly performance to new-business wins and its revenue mix. Notably, the Epsilon and Publicis Sapient units have been driving growth in recent quarters and continued to demonstrate strength this quarter.
Increased Guidance for 2023
Based on its exceptional performance in the first half of the year, Publicis now expects organic revenue growth of approximately 5% for 2023, with an operating margin close to 18%. This is higher than the previously projected range of 3%-5% organic growth and an operating margin between 17.5% and 18%.
Positive Outlook for Shareholders
Analysts are optimistic about Publicis’ strong quarterly results and revised guidance. Citi analyst Thomas Singlehurst stated in a research note that the company’s impressive organic growth and improved guidance should support its shares.
