PARIS: Publicis Groupe reported 5% second-quarter organic revenue growth, year-over-year, to $2.34 billion on Thursday morning.
The growth rate outpaced that of the second quarter of last year, when Publicis saw a global organic revenue increase of 1.6% to about $2 billion.
The owner of the MSLGroup PR network said its North American growth outpaced its global rate, increasing by 7.7% organically in the second quarter to $1.2 billion. The group made up of the BRIC and MISSAT (Mexico, Indonesia, Singapore, South Africa, and Turkey) regions reported 5.6% organic growth compared with Q2 2012 to $305 million, while the rest of the world saw year-on-year revenue growth of 9% to $226.4 million. Europe's revenue shrank by 1.1% from the previous year to $690.7 million.
First-half revenue was up 3.2% organically to $4.4 billion, meeting analysts' expectations, with net income up 15% to $410.8 million. North American revenue was up 6.1% organically in the first six months of the year to $2.1 billion. The BRIC and MISSAT countries reported 5.5% organic revenue growth, year-on-year, to $568 million, while the rest of the world saw revenue growth of 6.3% to $414.7 million in the first half. Europe's organic revenue was down 3.6% to $1.3 billion in the first half of the year, year-over-year.
“[The organic revenue growth] should be put into the perspective of an unpropitious economic situation, fierce competition, and an uncertain business environment,” chairman and CEO Maurice Levy said in an earnings statement. “The emerging countries are slowing, Europe is struggling to get back on the road to growth, while the USA is consolidating its upturn.”
In the second quarter, digital accounted for 36.9% of total revenue, compared with 33.2% in the previous year, and digital activities saw organic growth of 11.1%.
The holding company also narrowed its outlook for the rest of 2013 to say it could be “in the region of 3.6% (rather than the previous range of 3.2% to 3.6%), largely thanks to the recovery in the USA and growth in the digital sector.”
Organic growth represents change in revenue without taking into account the impact of acquisitions or disposals.
Note: All figures were converted from Euros to American dollars using the XE currency exchange calculator.