better due to greater support from public spending and less exposure to exports. Italy (up 3.8%) and especially Spain (up 4.6%) posted the highest growth figures in 2022, mainly due to their greater exposure to tourism revenues resulting in a more impactful economic reopening post-Covid.
UK GDP grew 4.3%, outperforming the euro zone and the USA. This economic growth is partly attributable to the increase in public spending and, unlike the other major Western developed countries, an increase in public deficit from 5.4% to 6% of GDP. Household consumption increased by 4.7%, while the balance of payments deficit widened sharply (from 1.5% to 5.5% of GDP). This unsustainable trajectory led to a financial and political crisis, the resignation of Liz Truss, and the implementation of a more balanced monetary and financial policy. As in Europe and the USA, inflation reached 40-year highs and the Bank of England pursued a tight monetary policy by raising interest rates.
China experienced a significant economic slowdown, with GDP growth falling from 8.1% in 2021 to 3% in 2022, the lowest figure since the 1970s. The “zero Covid” policy implemented in 2022 led to lockdowns in highly populated regions, which brought a significant part of China’s manufacturing infrastructure to a standstill. In addition, a worsening crisis in the real estate and construction sector, which accounts for more than a quarter of economic activity, reinforced recessionary trends in the country. Inflation rose from 0.9% in 2021 to only 2% in 2022. In response to social unrest and growing awareness of the harmful economic consequences of the “zero Covid” policy, the government decided to reopen the economy almost completely at the end of the year. The health situation deteriorated very quickly, but the economic outlook is improving in light of the full reopening of the economy in 2023.
The price of oil and energy soared at the beginning of 2022 due to the start of Russia’s military operations in Ukraine in February. Prices fell throughout the second half but remained tight at the end of the year due to the embargo on Russian oil and OPEC’s policy of maintaining prices at high levels. Underinvestment in upstream oil over the past 10 years also explains supply-side problems.
In this complicated macroeconomic environment and concerned about a potential recession, the advertising market continued to grow in 2022. According to Zenith’s December 2022 forecasts, global advertising spend grew 7.3% in the year, to reach 846 billion dollars. Although lower than the June 2022 forecast, growth in 2022 remained at a historically high level, especially since it followed a 16% increase in 2021.
Advertisers have continued to increase their investments in technology, infrastructure and advertising after a pandemic that has profoundly transformed consumption habits and prompted companies to transform.
For 2023 and despite the macroeconomic difficulties that remain, Zenith anticipates a good global advertising market, with budget growth of around 4.5% year-on-year. This increase should be driven in particular by the strong development of new channels such as Retail Media or the potential to advertise video-on-demand services. According to Zenith, advertising spend should accelerate in 2024 to grow by 7.2% including the impact of several events, including the presidential elections in the United States and the Olympic Games.
In this context, the Groupe continued to deploy its services and products through a unique business mix and positioning, to help its customers transform their marketing and business model.
This enabled the Groupe to record another record year in 2022 for all its indicators.
In 2022, the Groupe’s net revenue came in at euro 12,572 million compared to euro 10,487 million in 2021, up +20% on a reported basis and +10.1% organically.
Operating margin was euro 2,266 million, an increase of +23% year-on-year, resulting in an operating margin rate of 18.0%, 50 basis points higher than in 2021.
The Groupe’s net income was euro 1,222 million, up 19.0% compared to 2021.
Headline net income (as defined in Note 10 of the consolidated financial statements) stood at euro 1,611 million, compared to euro 1,264 million in 2021. Diluted headline net income per share was 6.35 euros, an increase of 26.5% compared to 2021.
The balance sheet as of December 31, 2022 showed net cash of euro 634 million compared to net financial debt of euro 76 million as of December 31, 2021. Average net financial debt stood at euro 685 million in 2022 compared to euro 1,530 million in 2021.
The dividend that will be proposed to the General Shareholders’ Meeting of May 31, 2023 is 2.90 euros per share. As a percentage of diluted headline earnings per share, it represents a pay-out ratio of 45.7%, in line with the dividend pay-out policy of a 45 to 50% pay-out ratio. Subject to the approval of the General Shareholders’ Meeting, payment of the dividend will be made on July 5, 2023, entirely in cash.
