1. Particular sensitivity to the economic and geopolitical conditions
Description of the risk
The sectors of advertising, communications, and consulting are greatly impacted by any changes in our clients' budget allocations. Clients activities can be influenced by periods of recession in specific countries or business industries, which may be a result of macroeconomic elements like inflation, rising interest rates, or a volatile geopolitical environment. An unfavorable economic environment could lead to a reduction in advertising and/or transformation budgets and therefore have an adverse impact on the Groupe.
In addition, the Groupe’s cost structure largely consists of employee compensation. As a result, macroeconomic factors such as high inflation over a long period of time could have an adverse impact on margins.
Risk management
Clients view periods of slowdown as opportunities to increase their market share by implementing effective communication strategies or substantial reforms. In addition, the impact of inflation on personnel costs is controlled and margins maintained thanks to the implementation of efficiency measures via the platform organization.
2. Highly competitive industry
Description of the risk
The advertising, communications and consulting sectors are highly competitive and are expected to remain so. In addition, in a volatile economic environment, aggravated by an uncertain geopolitical context, there is greater stress from clients on costs, increasing competitive pressure during negotiations.
The Groupe’s competitors are of all shapes and sizes, and range from large multinational companies, including Internet giants who are capturing an ever‑increasing share of the advertising market, to smaller agencies that operate in niche or regional markets. Many players, including systems integrators, database design and management specialists, telemarketing and web‑based companies, now have access to technical solutions to meet marketing and communication needs of the Groupe's clients and prospects.
The Groupe competes with these companies and agencies both to maintain existing client relationships and win new clients and accounts. Growing competition could have a negative impact on the Groupe’s revenue and earnings.
Risk management
The Group's balanced mix of Media, Data & Tech and Communications activities contributes to the uniqueness of its business model and makes all the difference in winning new market shares. The Groupe has always put innovation at the heart of its strategy. Through its country model and platform organization, the Groupe offers tailor‑made services to its clients. In addition, optimized shared services enables better cost management.
3. Cybercrime and IT systems failures
Description of the risk
In a world where digital technology is evolving at breakneck speed, dependence on information technologies has never been more critical. This dependence exposes the Groupe to significant risks, including malicious attacks, technical failures and insider threats, which may lead to service interruptions, personal data leaks and the disclosure of confidential information.
Systemic failures can be the result of malicious activities, natural disasters or technical deficiencies. They affect not only the Groupe, but also its partners and suppliers, potentially leading to long periods of disruption that could compromise our ability to serve our clients effectively.
Since 2020, a year marked by a global pandemic and an increased use of remote working, we have seen an increase in cyberattacks, in particular denial of service attacks and ransomware. This period laid the foundations for a constantly evolving threat landscape, significantly disrupting operations and jeopardizing the Groupe's infrastructures and those of its partners.