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Publicis Groupe Stock Falls 8% Following Weak Q2 Earnings Report

"This is anencouraging sign as this is where our new model is the most advanced," says Sadoun.  Asia Pacific net revenue fell 15.2 % with organic revenue down 3.3%. This negative performance islargely attributable to Australia which has been impacted by the discontinuation of a Qantas call center contract. The Middle East & Africa posted organic growth of 4.6% driven by South Africa(+11.1%) and the United Arab Emirates (+6.2%). Latin America reported organic growth of +9.1%. Although some companies are taking creative capabilities in-house, Publicis Media CEO Steve Kingsaid the media side is experiencing the reverse effect as advertisers realize taking media in-house is a difficult process to implement. King responded to an investor question that the Groupe passedon bidding for Acxiom's data-marketing division which IPG purchased for $2.3 billion earlier this month. He says Publicis is more focused on helping its clients build first-party data platforms ratherthan seeking opportunities to gain access to additional consumer data. changes at SapientRazorfish Sadoun said company's broader transformation ismaking a specific technology unit less relevant when clients seek this embedded expertise across all categories. That said, Sadoun added it will take time figure the brand's future. However, Sadounemphasizes, "There is a lot of reason to keep the SapientRazorfish brand." Looking forward, the Groupe's objective is to accelerate organic growth over the next two years to reach +4% by 2020.“This Q2 bump does not change our forecast for the year,” says Sadoun. Pivotal research senior analyst Brian Wieser called the Groupe’s performance “a surprising resultthat was far below consensus and our own expectations.” In an investor note Wieser added, “While we see plenty of reasons for concern in the organic revenue trends and because ofobservations we have on the industry regarding insourcing and reduced use of creative agencies with AOR-based relationships, we see reasons for optimism, too.

For the original version including any supplementary images or video, visit https://www.mediapost.com/publications/article/322436/publicis-groupe-stock-falls-8-following-weak-q2-e.html

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