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Publicis tumbles as it cuts revenue outlook again

By Michele Maatouk

Date: Friday 11 Oct 2019

Publicis tumbles as it cuts revenue outlook again

(Sharecast News) - French advertising giant Publicis was under the cosh on Friday after cutting its full-year revenue outlook.
The full-year outlook for growth was cut to around -2.5% from previous guidance in July for it to be "broadly stable". This was itself a downgrade from previous guidance of 0.8% growth.

Publicis said third-quarter organic revenue fell 2.7%, below its expectations, as it continued to suffer from cuts from a "handful" of clients on traditional advertising mainly in the US. In addition, the performance of its media operations was softer than expected amid "very tough" comparable bases.

The group is currently transitioning from a holding company to a platform.

Chief executive officer Arthur Sadoun said: "On the one side, the cost of our transition is hurting short-term organic growth with a negative Q3 below our internal expectations. This is leading us to take a very cautious approach and reset our guidance for revenue this year, now expected around -2.5%.

"On the other, our transformation is starting to show concrete results. We are posting a 17.3% growth in our reported revenue, shifting the revenue profile of the Groupe towards future-facing expertise. We can confirm a 17.3% operating margin and a 5% headline EPS growth for 2019 thanks to solid financials. We continue to have a strong new business momentum, demonstrating the attractiveness of our go to market."

At 1510 BST, the shares were down 12.8% at €37.07.


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