Publicis Groupe HY Profit Down

Publicis Groupe SA (PGPEF.PK,PUBGY.PK) reported that net income attributable to the Groupe, before IFRS 16, amounted to 313 million euro at June 30, 2018, compared to 387 million euros at June 30, 2017.

Overall, net income attributable to the Groupe amounted to 301 million euros, after IFRS 16 at June 30, 2018.

Net revenue for the first-half of 2018 was 4.280 billion euros, down 8.2% from 4.664 billion euros last year. At constant exchange rates, growth was negative 0.5%, after exchange rates adversely affected net revenue by 362 million euro (-7.8% impact). Net acquisitions contributed a negative 6 million euro to net revenue in the first-half of 2018 following the deconsolidation of Genedigi from January 1, 2018. Organic growth was -0.4% in the first-half of 2018.

In US dollars, Publicis Groupe net revenue was up 2.6%.

Publicis Groupe said it remains focused on three priorities: to deliver the results announced year after year, to accelerate its transformation by rolling out its model at scale, and to create shareholder value throughout the period. The first half-year 2018 yielded a marked improvement of its percentage margin, double-digit growth (at constant exchange rates) of headline earnings per share, and a strengthening of its financial position.

Business gains in the first quarter should lead to higher organic growth than in 2017. Concerning the margin, cost saving efforts will be continued, and part of the savings achieved will be reinvested to establish the basis for sustained future growth. Overall, the margin can be expected to increase by 30 to 50 basis points in 2018.

In the longer term, Publicis Groupe intends to deliver greater value to shareholders by accelerating the growth of its headline diluted EPS over 2018-2020, using three levers: accelerated organic growth, improved margins, bolt-on acquisitions.

The objective is to accelerate organic growth over 2018-2020 with the ambition of achieving +4% by 2020.

Publicis Groupe is also aiming to increase its percentage operating margin by 30 to 50 basis points per annum between now and 2020. This objective includes a 450-million euro cost savings plan fully aligned with the Groupe’s strategy. This cost savings plan will serve to fund a 300-million euro operational investment program spanning 2018-2020, a plan that is primarily dedicated to the Groupe’s talent through hiring, training, development and re-skilling.

Publicis Groupe is targeting 5% to 10% annual growth of its headline earnings per share, ramping up over the next three years, at constant exchange rates, through continuous enhancement of its organic growth, improved margins and the contribution of acquisitions to earnings.

by RTTNews Staff Writer

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