Publicis Groupe Digital Revenue Reaches Majority of Total Income

The Tip Desk · July 15, 2015 · 2 min read

The advertising group saw digital activities represent 50.9% of revenue in the first half of 2015.

Publicis Groupe, the advertising group, reported that digital activities represented 50.9% of revenue as of June 30, 2015, compared to 40.6% one year prior. The company said this shift follows the acquisitions of Nurun and Sapient. Digital growth reached 69.5% in the first half of 2015, though the company noted that excluding the impact of acquisitions and exchange rates, digital activities grew 5.0%.

Revenue for the first half of 2015 was 4,542 million euros, a 35.3% increase from 3,358 million euros in the first half of 2014. Organic growth for the period was 1.2%. The company attributed this growth to a sustained rise in digital activities. Regional performance varied, with Europe showing a 21.3% increase and North America rising 51.2%. Organic growth in those regions was 1.8% and 1.2% respectively.

Financial results for the first half of 2015 included a net income attributable to the Group of 363 million euros, up from 260 million euros in the first half of 2014. Current net income attributable to the Group was 383 million euros, compared to 297 million euros in 2014. Diluted current net income per share was 1.68 euro, a 28.2% increase from 1.31 euro.

The operating margin rate for the first half of 2015 was 13.0%, which the company described as stable compared to the 13.0% recorded in the first half of 2014. However, the company stated that at constant exchange rates, the operating margin rate declined by 40 basis points. Personnel costs for the first half of 2015 rose 33.9% to 2,944 million euros.

Net financial debt stood at 2,906 million euros on June 30, 2015, compared to a positive net cash position of 985 million euros on December 31, 2014. The company attributed this change to the payment for the acquisition of Sapient, which was concluded on February 5, 2015, for 3.7 billion dollars. The net debt to equity ratio was 0.48 on June 30, 2015.

Looking forward, the company expects organic growth to accelerate in the second half of the year. Publicis Groupe anticipates achieving double-digit growth for the full year in revenue, operating margin, and current net income per share. The company stated that its exposure to digital activities is the guarantee of future growth and the continued improvement of margins through 2018.