It should be noted that, unless otherwise specified, the following comments are based on Income Statement and balance sheet data before application of IFRS 16. Publicis Groupe disposed of Publicis Health Services (PHS) in early 2019. For this reason, the organic growth rates are also presented excluding the impact of PHS on Group growth.
In 2019, the net revenue of Publicis Groupe was euro 9,800 million, compared with euro 8,969 million in 2018, a 9.3% increase. At constant exchange rate, growth was 5.9% and exchange rate variations had a positive effect of euro 282 million (3.1% impact). Acquisitions (net of disposals) contributed net revenue of euro 760 million in 2019, reflecting the contribution of Epsilon from July 2019, and from other acquisitions, such as Xebia, Soft Computing and Rauxa, partially offset by the disposal of PHS at the end of January 2019 and of Proximedia at the end of April 2019. Organic growth was negative at -2.3% in 2019. This performance reflects three clearly identified negative factors. Firstly, the impact of attrition of around 200 basis points; then the effect of the loss of media contracts in 2018; finally, the repositioning of Publicis Sapient in the United States. These negative effects were partially offset by the continued excellent performance of Strategic Game Changers, which saw their net revenue increase by 18%, and by the positive effect of new accounts in 2019.
Breakdown of 2019 net revenue by geographic region
The following table shows the changes in the breakdown of net revenue in Publicis Groupe’s major markets.
Net revenue | Growth | |||
|---|---|---|---|---|
| (in millions of euros) | 2019 | 2018 | Reported | Organic |
Net revenue Europe | Growth 2,630 | 2,622 | +0.3% | -2.0% |
Net revenue % of total | Growth 27% | 29% |
|
|
Net revenue North America | Growth 5,516 | 4,795 | +15.0% | -3.5% |
Net revenue % of total | Growth 57% | 54% |
|
|
Net revenue Asia-Pacific | Growth 1,006 | 924 | +8.9% | +0.8% |
Net revenue % of total | Growth 10% | 10% |
|
|
Net revenue Latin America | Growth 326 | 347 | -6.1% | -4.9% |
Net revenue % of total | Growth 3% | 4% |
|
|
Net revenue Africa and Middle East | Growth 322 | 281 | +14.6% | +10.0% |
Net revenue % of total | Growth 3% | 3% |
|
|
Net revenue Total | Growth 9,800 | 8,969 | +9.3% | -2.3% |
Europe posted growth of 0.3%. With acquisitions and exchange rates factored out, organic growth was negative at -2.0%. Performance comparables were high, particularly in the three main countries of the region, and in the second part of the year. France and the United Kingdom recorded slightly negative economic growth of -0.8% and -0.2% respectively.
In Germany, on an organic basis, net revenue fell by -10.0%, as a result, in particular, of media losses in 2018. In North America, net revenue was up 15.0% compared with 2018, affected by the positive impact of the consolidation of Epsilon in the last six months of the year. On an organic basis, the region’s net revenue was down by -3.5% in 2019.
The negative factors set out above are largely attributable to the United States where growth stood at -4.1% over the year. Canada recorded an 8.3% increase in net revenue on an organic basis. Asia-Pacific saw net revenue rise by 8.9% and organic growth rise by 0.8% over the period. Australia recorded a decline in its net revenue of -7.0% on an organic basis and China a decline of -1.8%, whilst Singapore and India recorded double-digit growth (16.5% and 10.4% respectively). In Latin America net revenue was down -6.1%, affected by the negative impact of exchange rate fluctuations. On an organic basis, the decline in net revenue was -4.9% over the year, with a surplus in the fourth quarter.
The region’s performance reflects high comparables and a difficult economic context in certain countries. In Brazil, revenue was down -10.7% on an organic basis over the year. Mexico saw its net revenue fall by -6.1% on an organic basis over the year.
In the Middle East and Africa, net revenue increased by 14.6% due to the stronger euro, underpinned by organic growth of 10.0% driven by the United Arab Emirates (16.6%).
