Publicis sees second half revenue 'broadly stable' on organic basis
Publicis said when reporting first half results, "For H1, we are posting strong financial results for the Groupe, with an operating margin improvement of 40 bps supported by our ongoing cost savings plan, half of which was reinvested in our talents and expertise. Our headline EPS is up by 2.5% at constant currencies and excluding Beat tax and Epsilon transaction costs, and our free cash flow remains at a high level...When it comes to our short-term organic growth, two phenomena explain our situation. On the one hand, our clients are suffering from various pressures leading to budget cuts and fee reductions in sectors where we have a disproportionate share of market. On the other hand, the profound transformation we have been engaged in has penalized us in the short term. But our new model and organization are a clear strength for the longer term, as shown by our track record in new business or the growth posted by our game changers. For the second part of the year, we will deliver sequential improvement versus H1 on organic growth. But, as spending cuts are not gone away, we are taking a conservative approach for the full year, forecasting a broadly stable net revenue on an organic basis. With this in mind, thanks to the robustness of our model, we can already confirm we will deliver, as planned, a 30 to 50 basis points increase in operating margin and a Headline EPS up by 5 to 10 % at constant rates and including Epsilon."