Following what CEO Arthur Sadoun described as “a challenging year” at Publicis Groupe, the ad industry giant reported a 4.5% fall in organic growth for the fourth quarter of 2019.
While net revenue increased by 9.3%, organic growth fell by 2.3 percent for the full year 2019 – this despite a number of significant wins including global buying and planning business for Disney theme parks and Disney+, Nivea’s global creative account, media for Pfizer’s consumer healthcare business, Mondelēz International’s creative business.
CEO Authur Sadoun attributed the rise in net revenue to the impact of its $4 billion Epsilon acquisition completed in July 2019. Overall acquisitions (net of disposals) contributed $836 million to 2019, reflecting the contribution of Epsilon along with other acquisitions such as Rauxa, Xebia, and Soft Computing, and.
Asia-Pacific organic net revenue was up 0.8%. In Europe, there was a fall in organic growth of 2.0%, while France and the UK posted declines of 0.8% and 0.2%. Germany fell 10% organically. Net revenue in North America dropped 3.5% to the US falling 4.1% for the year and Canada posting growth of 8.3%.
Investors didn’t seem bothered by the results with the company stock rising in early afternoon trading on the Paris Exchange. Shares were up around 1 percent Thursday morning on the American OTC Markets.
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