Publicis Raises 2021 Revenue Forecast After Quarterly Growth

Publicis nudged up its projected operating margin to slightly above 17% from an even 17%.

The company reported an 11% increase in organic growth for the third quarter. Chief Executive Arthur Sadoun said in a statement that the Publicis has recovered from the impact of the Covid-19 pandemic, noting that organic revenue in the third quarter was 5% higher than in the comparable period in 2019.

Third-quarter organic revenue was up from a year earlier by 11% in the U.S., 13% in the Asia-Pacific region and 10% in Europe. When compared with two years earlier, before the pandemic, third-quarter organic revenue was up by 8% in the U.S. and 2% in the Asia-Pacific region, while remaining flat in Europe.

The company said its data and technology capabilities in the third quarter benefited from clients’ investment in digital media, commerce and direct-to-consumer efforts, especially in the U.S.

In the U.S., third-quarter organic revenue grew 13% at marketing agency Epsilon and 20% at technology and digital marketing firm Publicis Sapient.

The results show continued momentum for Publicis as well as the marketing and advertising industry, which faced disruption during the pandemic as clients first paused spending, then had to navigate fluctuating conditions.

Most brands have resumed their marketing activities, albeit often with more emphasis on digital media and data and analytics to better understand and reach consumers.

For the second quarter, Publicis had reported a 17% increase in organic revenue.

Write to Alexandra Bruell at [email protected]