When comparing its annual performances, Publicis Groupe measures the impact on reported net revenue of changes in foreign currency exchange rates, acquisitions and disposals, and organic growth. Organic growth, which represents the increase in like-for-like revenue at constant exchange rates, is calculated as follows:
The Group’s management believes that the analysis of organic net revenue growth provides a better understanding of its net revenue performance and trends than reported net revenue because it allows for more meaningful comparisons of current period revenue to that of prior periods. Also, like-for-like revenue is generally used in the industry as a key performance indicator. Organic growth is unaudited and is not a measurement of performance under IFRS. It may not be comparable with similarly titled financial data of other companies.
| (in millions of euros) | Total |
|---|---|
(in millions of euros) 2018 net revenue | Total 8,969 |
(in millions of euros) Impact of exchange rates | Total 282 |
(in millions of euros) 2018 net revenue at 2019 exchange rate (a) | Total 9,251 |
(in millions of euros) 2019 net revenue before impact of acquisitions(1) (b) | Total 9,040 |
(in millions of euros) Net revenue from acquisitions(1) | Total 760 |
(in millions of euros) 2019 Net revenue | Total 9,800 |
(in millions of euros) Organic growth (b - a)/a | Total -2.3% |
(1) Net of disposals.
Organic growth was negative at -2.3% in 2019. This includes a) 18% growth in net revenue from Strategic Game Changers, namely an organic contribution to net revenue of close to euro 200 million compared with 2018 and b) an attrition impact of circa 200 basis points. Organic growth for each quarter in 2019 was:
