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

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

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

Albo Responds To Meta: “Not the Australian way”
  • Media

Albo Responds To Meta: “Not the Australian way”

Australian Prime Minister Anthony Albanese said Meta’s decision to stop paying for Australian news is “not the Australian way” and that he is “very concerned” about the announcement. Meta today confirmed it will walk away from funding Aussie journalism once the current content deals expire in what is a significant blow to Australia’s largest publishers. […]

Media Outlets Respond To Meta’s Decision To Stop Funding Australian News
  • Media
  • Technology

Media Outlets Respond To Meta’s Decision To Stop Funding Australian News

The Australian media industry has responded to Meta’s decision to walk away from funding Aussie journalism once the current content deals expire. In a blow to local media outlets, Meta said it will not enter negotiations to extend deals to pay Australian media companies for the news that appears on its platforms. Michael Miller, News […]

FIVEAA Unveils Refreshed Brand Identity
  • Media

FIVEAA Unveils Refreshed Brand Identity

NOVA Entertainment has today announced the launch of a refreshed brand identity for FIVEAA, Adelaide’s premier commercial talkback station. The forward-looking brand refresh reflects FIVEAA’s new lineup and vision while paying homage to the station’s previous logo and rich heritage. Built upon the new tagline of Always Adelaide, the new direction celebrates the ‘AA’ branding […]

Fabulate Wins Big At AiMCO Awards
  • Marketing

Fabulate Wins Big At AiMCO Awards

Australian social and content marketing workflow platform Fabulate has won big at the industry’s annual AiMCO Awards, taking out the highly competitive Best Influencer Marketing Technology Service category. Lead image: Fabulate team at Aimco Awards The win saw the start up platform, which has a team of around 50, receive the industry recognition against competitor […]

Hubbl Is Here: Newest Transformative TV Tech On Sale March 10
  • Media

Hubbl Is Here: Newest Transformative TV Tech On Sale March 10

Australia’s newest transformative TV technology, Hubbl, will be on sale from March 10 in Harvey Norman and JB Hi-Fi retail stores nationally and via Hubbl.com.au. Lead Image: Foxtel CEO Patrick Delany at Hubbl Launch. Also from March 10, Hubbl will unveil a national advertising campaign starring brand ambassadors Hamish Blake and Andy Lee. The multi-channel […]