Publicis Groupe has reported net revenue of 4,774 million euros ($5.56 billion) for the first half of 2020, up by 9.7% compared to 4,352 million euros in H1 2019. Net revenue in Q2 was up 2.6%.
The acquisitions (net of disposals) contributed 350 million euros to the net revenue in Q2 2020, mainly reflecting the contribution of Epsilon.
The organic growth stands at -8.0% in H1 2020. The Groupe has been impacted by the effects of the Covid-19 pandemic from March, with a further decline in organic growth in Q2 following the containment measures that were implemented by governments in different geographies.
Other regions also saw significant decreases in revenue. Its Q2 organic revenue dipped 7.6% in North America to $1.7 billion as the holding company dealt with the financial impacts of the COVID-19 pandemic. In the U.S., Q2 organic revenue dropped 6.8%.
Publicis fared comparably worse in Europe, with organic revenue decreasing 23.5% year-over-year to $590.7 million in Q2.
In the Asia-Pacific region, organic revenue dropped 5.7% to $249 million. In Latin America, organic revenue fell 20.2%, and it declined 23.5% in the Middle East.
In total, the holding company’s Q2 organic revenue dropped 13% to $2.7 billion.
However, the company says these results are “significantly better” than the 23% decline in global advertising expenditures predicted by Zenith and the 30% decline mentioned by WFA for Q2.
“The results we are publishing demonstrate that Publicis has strong fundamentals to weather the crisis,” stated Arthur Sadoun, Chairman/CEO, Publicis Groupe. He acknowledged that “There is no doubt that we will all have to live with the virus and its economic and social consequences for a while.”
Looking forward, the Groupe states the full impact of the current crisis on the economy remains “largely unknown.” This creates uncertainties, which make it difficult to provide any specific guidance for the second half of 2020.
“As we head into the second half, we are focusing on limiting the impact of the downturn, accelerating our new offering for our clients, while continuing to adapt our cost structure,” says Sadoun.
