Publicis Groupe Blames Australia For Poor First-Half Results In APAC

Publicis Groupe Blames Australia For Poor First-Half Results In APAC
SHARE
THIS



Advertising and marketing behemoth Publicis Groupe has delivered some bad news for its Australian operations in the company’s financial results for the first half of 2018.

Publicis’ Asia-Pacific business division saw its net revenue decline 15.2 per cent to $669.8 million in the six months to 30 June 2018, and its organic growth drop 3.3 per cent.

The company said these negative results were “largely attributable” to Australia’s revenue dropping 10.8 per cent due to its loss of the Qantas call centre contract.

The APAC region is the third largest revenue-raiser for Publicis, behind the US and Europe. However, it was the worst performing region by a country mile.

Publicis H1 2018 revenue breakdown by region

Overall, Publicis’ net revenue fell 8.2 per cent in the first half of 2018 to $6.8 billion, with organic growth down 0.4 per cent.

Commenting on the results, Publicis chairman and CEO Arthur Sadoun (pictured above) said the company experienced a slowdown in the second quarter of 2018 mostly due to two conjunctural challenges.

One was the “tougher basis of comparison and uncertainty relating to GDPR implementation impacting our net revenue in Europe, but also to one specific operational bump with our volatile health sales representatives business in the US,” he said.

“This bump represents the biggest share of our negative growth, as the overall impact of our Publicis Health business was around 30 million euro.”

Publicis H1 2018 revenue breakdown by sector

However, Sadoun said Publicis’ overall first-half results, combined with its new business wins gives the company confidence that it can deliver its full-year objective of improving growth and margin compared to 2017.

“I reiterate, if necessary, that our market has been facing major challenges and transformation has become a necessity for all,” he said.

“Initiatives we launched very early and acquisitions we made are bearing fruits: we are able to overcome unavoidable budget cuts and changes in marketing plans thanks to our assets and our organisation that position us in the most competitive way possible.

“No doubt, during H1, we have set the foundations to deliver our full-year objectives and, even more importantly, our three-year transformation plan. It will not be an easy journey as we must transform ourselves while facing some strong market headwinds.

“There could be some unexpected bumps in the road like the one we just experienced in the health sector.

“But, we have an outstanding team, unmatched capabilities in data, creativity and technology, and a proven winning model that make us very confident for the future.”

Please login with linkedin to comment

publicis Publicis Groupe

Latest News

THIS
  • Advertising
  • Marketing
  • Media

Meet Your Judges For The 2018 B&T Awards!

B&T is calling this year's awards judges probably the finest ever assembled. As a chamber choir, arguably less so.

by B&T Magazine

B&T Magazine
Indie Agency KWP! Snares Tourism NT’s Creative Account
  • Advertising

Indie Agency KWP! Snares Tourism NT’s Creative Account

Tourism NT has appointed KWP! as its lead strategic and creative agency. The independent agency, with offices in Darwin and Adelaide, has won the two-year contract following a competitive pitch in September this year. As the lead agency, KWP! is required to formulate sound strategic insights based on ongoing analysis of market research, consumer insights and […]

by B&T Magazine

B&T Magazine
McCann’s Action-Packed Army Ad Plays Out Like A War Flick Or Video Game
  • Campaigns

McCann’s Action-Packed Army Ad Plays Out Like A War Flick Or Video Game

Most army recruitment ads tend to steer clear of the blindingly obvious of military life – you get a gun to shoot the enemy or you get shot yourself. More so, agencies aren’t overly keen on promoting recruitment ads that are heavy on the guns or violence, preferring lifestyle or technical aspects of military life. Not so McCann’s new action-packed spot for the US […]

by B&T Magazine

B&T Magazine
Are You Dragging The Wrong People Into Pointless Meetings?
  • Opinion

Are You Dragging The Wrong People Into Pointless Meetings?

Donna McGeorge (pictured below) is a speaker and  mentor who helps people make their work work. McGeorge is also author of The 25-Minute Meeting: Half the Time, Double the Impact. In her latest guest post for B&T, McGeorge offers her tips on avoiding every workers’ hell- the pointless meeting… We all complain about having to attend too […]

Opinion

by B&T Magazine

B&T Magazine
Francis Leach Joins The New Daily As Sports Editor
  • Media

Francis Leach Joins The New Daily As Sports Editor

Famed sports reporter Francis Leach has joined online publisher The New Daily as sports editor. A prolific broadcaster, journalist and program host, Leach brings his encyclopedic knowledge of sport and no-holds-barred critical analysis to the role. “Let’s face it, sport these days is big business. I’m interested in connecting and contextualising sport with the big […]

AIME Appoints Eleven To Champion 2019 Vision
  • Advertising
  • Media

AIME Appoints Eleven To Champion 2019 Vision

Eleven has been appointed to manage all PR for the Asia Pacific Incentives Meetings & Event (AIME) 2019, the leading show for the business events industry. Selected by Talk2 Media & Events, Eleven will drive a global PR campaign, working with sister agency FleishmanHillard, to leverage international media networks across Asia Pacific, Europe, Middle East […]

Fox Sports Launches Alexa Skill
  • Media
  • Technology

Fox Sports Launches Alexa Skill

Australian sports fans can now tune into Fox Sports News live on their Amazon Echo device. From today, Alexa users will be able to add the new Fox Sports Alexa skill to their daily routine by asking “Alexa, play the Fox Sports live stream.” The Fox Sports Skill will deliver sports fans a live stream […]