by Stephanie Hamel

(Reuters) – Publicis published better-than-expected quarterly results on Thursday, in the wake of its data and media businesses, consolidating a unique position in an otherwise sluggish industry.

The main global advertising group explains this performance in particular by its “dynamic of gains in new business” a “clear rebound” in the technology sector.

“We definitely stood out in 2023, and this momentum continues in the first quarter of 2024,” group CEO Arthur Sadoun said in a statement.

Over the January-March period, Publicis recorded net income of 3.23 billion euros, representing organic growth of 5.3%, higher than the 4%-5% range announced in February.

The company confirmed its forecasts for the year, with organic growth expected between 4% and 5%, calling its 4% target “very solid”. For the second quarter, organic growth should be in the same range.

Publicis said it takes into account continued delays in clients’ digital transformation projects, lower advertising spending and a “cautious stance” towards advertisers’ end-of-year budget adjustments.

By comparison, rival WPP said in February it expected growth of up to 1 percent this year due to the loss of some creative contracts. Its quarterly results are expected on April 16.

The investments made by Publicis in its data and technology divisions, such as Epsilon and Sapient, have been bearing fruit for several quarters, in a context of increasing digitalization of the global advertising sector.

“It is our ability to offer products and services that others do not have that generates growth superior to the competition,” Arthur Sadoun said during a telephone press conference.

(Stéphanie Hamel; Jean Terzian)

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