Publicis Groupe Q2 revenue drops 13%

Publicis Groupe CEO Arthur Sadoun
Publicis Groupe CEO Arthur Sadoun

CEO Arthur Sadoun said the U.S. had a solid performance, helping to limit Publicis' overall revenue decline.

Publicis Groupe’s Q2 organic revenue dipped 7.6% in North America to $1.7 billion as the holding company dealt with the financial impacts of the COVID-19 pandemic. In the U.S., Q2 organic revenue dropped 6.8%.

The holding company did not disclose specific revenue totals for the U.S.

Publicis fared comparably worse in Europe, with organic revenue decreasing 23.5% year-over-year to $590.7 million in Q2. In the Asia-Pacific region, organic revenue dropped 5.7% to $249 million.

In an earnings statement, chairman and CEO Arthur Sadoun wrote that a "solid tailwind in the U.S.," helped to limit the company’s overall revenue decline. The holding company’s Q2 organic revenue dropped 13% to $2.7 billion.

U.S. creative and media initiatives showed positive growth at the end of May, though they ended in the negative for the first half, according to Publicis’ earnings presentation. Publicis Sapient had a "good start to the year" but ended up negative in Q2, and there was double-digit growth in the holding company’s U.S. health-related business.

Publicis’ country model and cost-reduction efforts also helped it deal with the "sudden drop" in net revenue since March, Sadoun wrote.

Other regions also saw significant decreases in revenue. In Latin America, organic revenue fell 20.2%, and it declined 23.5% in the Middle East.

Operating income for the first half of the year was down 48.1% to $294.5 million, and net income attributable to the holding company dropped by 60.6% to $157.7 million.

*Figures translated from euro to dollars via Google. Organic revenue represents change without taking into account the impact of acquisitions or disposals.

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