Publicis Groupe : Q1 2016 Revenue
(Thomson Reuters ONE) -
+------------------------------------------------------------+
| |
| |
| Q1 2016 Q1 2015 |
| |
| * Revenue (EUR million) 2,291 2,103 |
| |
| * Reported growth +8.9% |
| |
| * Growth at constant exchange rates +10.0% |
| |
| * Organic growth +2.9% |
| |
| |
+------------------------------------------------------------+
Maurice Lévy, Chairman and CEO of Publicis Groupe:
"We have made a promising start to 2016 - both in terms of performance and our
own transformation. Organic growth in the first quarter of 2.9% was higher than
expected and largely driven by accounts won at the end of 2015 and the good
momentum in the media market. I would like to emphasize the very good
performance of Sapient whose 10%+ growth provides confirmation of its growth
potential.
With 55% of our revenue coming from digital, we are confident about our future
but must remain cautious about the next two quarters which will be more impacted
by losses that occurred in the 2015 media account reviews.
Our strategic exercise has led us to an adaptation of our organization to the
4th industrial revolution and our 2016 priority remains the finalization of our
own transformation. Our clients' interests have always been in our culture. We
have known how to adapt regularly in order to better serve our clients and help
them in the new digital environment.
Over the last ten years, we have been acquiring all the assets necessary to
provide an end-to-end offering, from consulting to technology, in order to help
our clients in the transformation of their own marketing and business models.
To that end, we have deeply changed our own model. By this summer, this major
undertaking should be finalized, with the complete disappearance of silos and
holding company status. Publicis Groupe is becoming a "connecting company", one
that combines creativity and technology in an offering that is integrated, open-
ended and flexible, thanks to its modular design.
Our objective remains achieving our three priorities: the completion of our
organization by the end of the first half of 2016, the return to more usual
levels of growth, and the continued improvement of our profitability."
1 - Q1 2016 REVENUE
Publicis Groupe's consolidated revenue for the first quarter of 2016 totaled
2,291 million euro, up 8.9% from 2,103 million euro in Q1 2015. Exchange rates
had a 20 million-euro negative impact, i.e. 1% of Q1 2015 revenue. Net
acquisitions contributed 147 million euro or 7.0% of Q1 2015 revenue. Growth at
constant exchange rates was +10%.
Organic growth rose to +2.9% over the period, buoyed by digital (+7.6%) and good
performance levels in Europe and North America, where the loss of media accounts
in 2015 during the so-called "Mediapalooza" had only a moderate impact on Q1
2016. The impact will be bigger in quarters to come. Sapient, which has been
included in the calculation of organic growth since February 6, 2016, posted
organic growth of slightly above 10%. It should be noted that Healthcare
performed well over the period. Media activities remained solid, a similar
trend to Q4 2015.
Q1 2016 revenue by region
----------------------------------------------------------------
EUR million Revenue Organic Reported
---------------------
Q1 2016 Q1 2015 growth growth
----------------------------------------------------------------
Europe 631 588 +3.4% +7.3%
North America 1,301 1,152 +3.0% +12.9%
Asia Pacific 230 221 +3.8% +4.1%
Latin America 71 90 -3.1% -21.1%
Middle East & Africa 58 52 +0.7% +11.5%
----------------------------------------------------------------
Total 2,291 2,103 +2.9% +8.9%
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Europe recorded growth of 7.3%. Net of acquisitions and the impact of exchange
rates, organic growth stood at 3.4%. Digital activities progressed strongly in
Europe, growing by 13.0%. Mention should be made of the good performance of
France (+3.0%) and the very good momentum of Germany and Italy (growth of the
order of 10%). Spain also improved, while the situation was volatile in Russia
(+9.4%) but better in the UK compared with the sharp decline posted of previous
quarters
(-0.7%).
North America saw its revenue increase by 12.9%, achieving organic growth of
3.0%. This progress was mainly attributable to the media business, as the loss
of media accounts during the "Mediapalooza" was only moderate in the first
quarter. The impact will be bigger in quarters to come.
Asia Pacific reported revenue growth of 4.1% and organic growth of 3.8%, with
notable performances in India (+8.6%) and mainland China (+4.1%).
Latin America saw revenue fall by 21.1% (organic growth of -3.1%) due to Brazil
and Mexico (respectively -9.5% and -14.6%) where the situation remains difficult
in both countries.
In the Middle East & Africa, revenue grew by 11.5%. Organic growth was +0.7%.
Q1 2016 revenue growth by revenue and by technology
The Groupe's growth continues to be driven by its digital activities (+7.6%
organic growth), with double-digit growth achieved in all regions except North
America where the Groupe is still encountering difficulties with Razorfish. It
should also be noted that analog activities continued their decline.
------------------------------------------------------------------------------
Europe North America Asia Latin Middle East Total
Pacific America & Africa
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Digital +13.0% +4.3% +21.0% +14.4% +13.2% +7.6%
------------------------------------------------------------------------------
Analog -3.9% +0.9% -3.9% -7.5% -2.8% -1.9%
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Total +3.4% +3.0% +3.8% -3.1% +0.7% +2.9%
------------------------------------------------------------------------------
2 - NET DEBT
Net debt stood at 2,864 million euro at March 31, 2016, compared with 2,966
million euro at March 31, 2015. The Groupe's average net debt in Q1 2016 was
2,092 million euro, up from an average of 776 million euro in 2015, subsequent
to the acquisition of Sapient on February 6, 2015.
3 - HIGHLIGHTS FROM Q1 2016
3.1 - Reorganization
On December 3, 2015, Publicis Groupe announced its intention to become the most
integrated organization in its sector, thus bringing down the curtain on the
traditional silo-type structure of communications groups. It is about Publicis
Groupe being able to help its clients face the challenges of transformation and
marketing performance of its clients.
The purpose of this reorganization is to endow the Groupe with a client-centric
structure. Four "Solutions hubs" dedicated to serve clients on a transversal
basis have been created:
- Publicis Communications, led by Arthur Sadoun, includes the creative and
communication networks: Publicis Worldwide, Leo Burnett, Saatchi & Saatchi, BBH,
MSL (public relations), and Prodigious (creative production);
- Publicis Media, led by Steve King, covers the Groupe's media and connection
capabilities: Starcom, Zenith, Mediavest / Spark, Optimedia / Blue 449 as well
as performance units such as Performics;
- Publicis.Sapient, led by Alan Herrick, includes consulting / technology /
digital: SapientNitro, Sapient Consulting, DigitasLBi and Razorfish;
- Publicis Health, led by Nick Colucci, caters all the solutions for the
healthcare sector: DigitasHealth LifeBrands, Publicis LifeBrands, Saatchi &
Saatchi Wellness, Publicis Health Media andTouchpoint Solutions.
All of these Solution hubs will directly address the Groupe's top 20 markets.
For the other markets, Publicis One, led by Jarek Ziebinski, will serve clients
in an integrated organization under one roof in each country.
Global clients will be served by Global Client Leaders (Chief Client Officers),
coordinated by Laura Desmond, CRO.
The Publicis.Sapient and Publicis Health solutions are already fully
operational. The other Solution hubs are largely operational as designed, the
remaining adjustments will be completed by end of June 2016.
3.2 - Acquisitions
- Vertiba, the Salesforce partner, is specialized in marketing solutions.
Founded in 2010, Vertiba is headquartered in Boulder, Colorado. Vertiba's
skills will be integrated into the Publicis.Sapient platform.
- Venus Communications is one of the leading public relations agencies in
Vietnam. Venus is part of the MSL brand, which in turn is part of Publicis One
in Vietnam. Over the last ten years, Venus and MSL have collaborated
successfully on numerous assignments. The agency, which was founded in 1998, has
over 40 employees and a prestigious client portfolio that includes MasterCard,
FedEx, Rolls Royce, BAT, Mead Johnson, and Sanofi.
- Troyka Group, in which Publicis Groupe has just acquired a stake, is West
Africa's first fully integrated communications services group. The Troyka group
is comprised of six agencies, i.e. Insight Communications, The Thinkshop, All
Seasons Media, Media Perspectives, The Quadrant Company, and Hotsauce. Starting
out with Insight Communications in 1980, the Troyka group now has 300 employees
over six agencies across the entire region. The Troyka agencies work with
prestigious international brands such as Heineken, Shell, Samsung, Unilever,
Google, P&G, Microsoft, Ford and Axa, as well as with national clients such as
Oando, Nestoil, Africa Investor, Jagal, and Olam.
4 - OUTLOOK
The IMF's recent announcements on its revised growth outlook underscore the
uncertainty of the global economic environment. Political instability in
countries such as Brazil only add to this prospect. Despite this environment
and the difficulties in certain sectors of the economy, Publicis Groupe is
confirming its previous indications of an improvement of all its financial
indicators: revenue, operating margin, adjusted diluted EPS, and dividend
payout.
The Groupe's transformation is the most radical ever imagined in its sector. It
is being carried out in order to meet clients' new requirements brought about by
the fierce competition ushered in by the development of digital technology.
Digital has not only empowered consumers, it has caused the physical and digital
worlds to converge, with the emergence of numerous newcomers that are completely
challenging the established order. Publicis Groupe has abolished the notion of
holding company with silo-type operating structures and now provides a complete
array of services from consulting right up to the materialization of campaigns
through the alchemy of creation and technology.
* * *
Disclaimer
Certain information contained in this document, other than historical
information, may constitute forward-looking statements or unaudited financial
forecasts. These forward-looking statements and forecasts are subject to risks
and uncertainties that could cause actual results to differ materially from
those projected. They are presented as at the date of this document and, other
than as required by applicable law, Publicis Groupe does not assume any
obligation to update them to reflect new information or events or for any other
reason. Publicis Groupe urges you carefully to consider the risk factors that
may affect its business, as set out in the 2015 Registration Document filed with
the French Autorité des Marchés Financiers (AMF) and which is available on the
website of Publicis Groupe (www.publicisgroupe.com), including an unfavourable
economic climate, an extremely competitive market sector, the possibility that
our clients could seek to terminate their contracts with us at short notice, the
fact that a substantial part of the Group's revenue is derived from certain key
clients, conflicts of interest between advertisers active in the same sector,
the Group's dependence on its directors and employees, laws and regulations
which apply to the Group's business, legal action brought against the Group
based on allegations that certain of the Group's commercials are deceptive or
misleading or that the products of certain clients are defective, the strategy
of growing through acquisitions, the depreciation of goodwill and assets listed
on the Group's balance sheet, the Group's presence in emerging markets, the
difficulty of ensuring internal controls, exposure to liquidity risk, a drop in
the Group's credit rating and exposure to the risks of financial markets.
About Publicis Groupe - The Power of One
Publicis Groupe [Euronext Paris FR0000130577, CAC 40] is a global leader in
marketing, communication, and digital transformation. Active across the entire
value chain, from consulting to creation, and production, Publicis Groupe
offers its clients a transversal, unified and fluid model allowing them access
to all the Groupe's tools and expertise around the world. Publicis Groupe is
organized across four Solutions hubs: Publicis Communications, Publicis
Media, Publicis.Sapient and Publicis Health. These 4 Solutions hubs operate
across principal markets, and are carried across all others by Publicis
One. Publicis One is a fully-integrated services offering making the Groupe's
expertise available to all clients, under one roof.
Present in over 100 countries, Publicis Groupe employs nearly 80 000
professionals.
www.publicisgroupe.com | Twitter:(at)PublicisGroupe | Facebook:
www.facebook.com/publicisgroupe | LinkedIn : Publicis Groupe |
http://www.youtube.com/user/PublicisGroupe | Viva la Difference!
Contacts
Publicis
Groupe
Peggy Corporate + 33 (0)1
Nahmany Communication 44 43 72 83 peggy.nahmany(at)publicisgroupe.com
Jean-Michel Investor + 33 (0)1 jean-
Bonamy Relations 44 43 77 88 michel.bonamy(at)publicisgroupe.com
Chi-Chung Investor + 33 (0)1
Lo relations 44 43 66 69 chi-chung.lo(at)publicisgroupe.com
Appendices
Organic growth calculation
+------------------------------------------+-----+ +-------------------------+
| | | | Impact of foreign |
| | | | exchanges |
| (in million euros) | Q1 | | (in million euros) |
| | | | |
| | | | Q1 |
| | | +---------+---------------+
|2015 revenue |2,103| |GBP ((2))| (7)|
| | | +---------+---------------+
|Impact of foreign exchanges ((2)) | (20)| |USD ((2))| 23|
| | | +---------+---------------+
|2015 revenue at 2016 exchange rates (a) |2,083| |Others | (36)|
+------------------------------------------+-----+ +---------+---------------+
|2016 revenue before acquisitions ((1)) (b)|2,144| |Total | (20)|
| | | +---------+---------------+
|Revenue from acquisitions ((1)) | 147|
| | |
|2016 revenue |2,291|
| | |
| | |
|Organic growth (b/a) |+2.9%|
| | |
+------------------------------------------+-----+
(1) Acquisitions (Star Reacher, Sapient, B2B, Expicient, Practice iLeo Romania,
Relaxnews, C, Match Media, Domani, AKOM 360, TMC, Voden, 2DataFish, Frubis, The
Solution Group, Glickman, TCC, First Click, August Media, Langland, PDI,
MercerBell, Vertiba, Seven Seconds, Insight Redéfini), net of disposals.
(2) EUR = USD 1.103 at end March 2016 vs. USD 1.125 at end March 2015
EUR = GBP 0.771 at end March 2016 vs. GBP 0.743 at end March 2015
New Business : Main wins at end March 2016
Volkswagen (China), Mondelez gum & candy (China), Wetherm (Greater China),
Marubi (Greater China), Snapdeal (India), Yakult (Brazil), Carrefour (Brazil),
Wine (Brazil), Movida (Brazil), Cadillac (USA), P&G Dish (USA), Acer Global
(South Africa), Morrisons (UK), P&G (UK), Nestlé (UK), Belimo (Switzerland),
Duracell International (Poland), Samsung / Brown Goods (Poland)
Shine Lawyers (Australia), Metricon Homes (Australia), EziBuy (Australia), AFL
(Australia), Crosby Texter (Australia), BMBS/Daimler (China), DBS
(Singapore/China/India), Shangri-La (China/Hong Kong), EDB (Singapore), Urban
Clap (India), Gander Mountain (USA), Snapchat (USA), THE One (UAE/GCC), Lidl
(Denmark), ORCHESTRA (France), VTECH (France), FinexKap (France), Generali
(Switzerland), INLAC (Spain), Worten (Spain), Pepe Jeans (Spain), 4 Finance
(Poland), SAB Miller (Poland), OBI (Poland)
Mastercard (Australia), Sunsuper (Australia), Pinpoint (Australia), Angie's List
(USA), Time Inc. (USA), Whole Foods (USA), Travelers (USA), Cardinal Health
(USA), Genetech (USA), TransAmercia (USA), J Jill (USA), Silicon (USA),
Starbucks (USA), CSM Bakery (USA), Manulife (Canada), Kering (UK), PGA Europe
(UK), Congstar (Germany), Clinique Men (USA)
Acer (Indonesia), Electronic City (Indonesia), JDID (Indonesia), Scotiabank
(Chile), Histadrut (Israel), Arkia (Israel), Mediamarkt (Turkey), BSH Ikiakes
Syskeves A.B.E. (Greece), Nestlé (Greece), Newsphone Hellas (Greece), Dutch
Government (Netherlands), Meetic (Netherlands)
2016 press releases
13-01-2016 Publicis Communications Announces Priorities & Key Appointments
28-01-2016 Leadership change at Leo Burnett Worldwide
11-02-2016 2015 annual results
03-03-2016 Publicis.Sapient acquires Vertiba, a Salesforce Gold Consulting
Partner
10-03-2016 MSL acquires Venus Communications Ltd in Vietnam
10-03-2016 Publicis Media Unfolds Its Organisation Powered by Four Global
Brands - Starcom, Zenith, Mediavest | Spark, and Optimedia | Blue 449
17-03-2016 Publicis Groupe Partners with The Troyka Group in Nigeria
24-03-2016 Publicis Groupe Launches Sapient Inside: The Combined Power of
Publicis Communications and the Publicis.Sapient Platform
31-03-2016 Publicis Groupe Named the Most Attractive Employer in the
Services Sector by the Randstad Awards
31-03-2016 Publicis One Announces its Global and Regional Leadership
Definitions
EBITDA: operating margin before depreciation
Operating margin: Revenue after personnel costs, other operating expenses (excl.
non-current income and expense) and depreciation (excl. amortization of
intangibles arising on acquisitions).
Operating margin rate: Operating margin as a percentage of revenue.
Net income group share: Group net income after elimination of impairment losses,
amortization of intangibles from acquisitions, main capital gains and losses on
disposal of assets, revaluation of earn-out payments and costs related to merger
with Omnicom project and Sapient acquisition.
EPS (Earnings per share): Net income group share divided by average number of
shares, not diluted.
EPS, diluted (Earnings per share, diluted): Net income group share divided by
average number of shares, diluted.
Capex: Net acquisitions of tangible and intangible assets, excluding financial
investments and other financial assets.
ROCE (Return On Capital Employed): Operating Margin after Tax (using Effective
Tax Rate) / Average employed capital. Capital employed include Saatchi & Saatchi
goodwill which is not recognised in consolidated accounts under IFRS.
Net Debt (or financial net debt): Sum of long and short financials debt and
debt-hedging derivatives linked with, net of treasury and cash equivalents.
Average net debt: Average of monthly net debt at end of month.
Dividend pay-out: Dividend per share / EPS
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Publicis Groupe via GlobeNewswire
[HUG#2004563]
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Datum: 19.04.2016 - 07:30 Uhr
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