The economy of the eurozone maintained its stagnation and grew by just 0.9%, slightly ahead of expectations. Growth reached around 0.5%-0.6% in the first half of the year and picked up in the second half to 1%. A mixed performance was seen across the different eurozone countries. Southern European countries such as Spain (+3%) and to a lesser extent Portugal (+1.7%) benefited from a rebound in tourism and stronger domestic demand. By contrast, Germany stagnated (-0.1%), as did Italy (+0.5%) due to major decarbonization challenges, as well as a shrinking foreign demand for capital goods. France held up better at +1.1% thanks to consumption, but its public deficit increased to the high level of 6.4%. Inflation in the eurozone continued to fall, dropping from 2.9% in December 2023 to 2.4% in December 2024, which allowed the European Central Bank to cut rates four times between June and December. The main refinancing rate stood at 3%, compared with 4% a year ago. This significant reduction in financing costs provided a slight stimulus to the economy via lower bank financing costs, which should continue in 2025. Political uncertainty in France (elections and government instability) and Germany (failure of the current coalition and new elections in February 2025), as well as the continued war in Ukraine, additionally contributed to a slowdown in the eurozone economy.
In 2024, the growth of GDP in the UK was expected to be very close to the +0.9% attained by the eurozone, which represents a solid performance compared to expectations a year ago at 0.4%. Growth was steady throughout the year, moving from +0.3% in the first quarter to +1.6% in the fourth. This performance was achieved thanks to a buoyant level of consumption, stimulated by disinflation and a robust labor market with a low unemployment rate of 4.3%. As in Europe, inflation in the UK fell to 2.5% by the end of the year, enabling the Bank of England to cut rates from 5.25% to 4.5%. Inflation, excluding volatile variables, remained relatively high at 3.7%. The public deficit was high at 6% of GDP.
China’s economy grew by +4.8% in 2024, below the government’s target of 5% and the growth rate that was seen before the Covid-19 pandemic. The crisis in the real estate sector persisted and remained a major drag on growth. Weak consumer confidence also weighed on consumption, while exports declined due to sluggish global demand and import restrictions imposed by certain countries. Inflation fell sharply to below 1%, to the point where the risk of deflation seemed to re-emerge. As a result of this decline in growth, which is leading to high youth unemployment, the government launched a 10,000-billion-yuan stimulus package, targeting infrastructure, technology and local debt reduction. The People’s Bank of China lowered its key interest rates to 2.5%, with no significant effect for the time being.
Despite geopolitical tensions and the war in the Middle East, oil prices rose at the start of the year, before falling steadily and ending up not far from the lowest prices at the end of 2024. Global demand was affected by a weak demand from Europe and China, OPEC struggled to maintain its production cuts and the US is set to increase drilling under the new presidency of Donald Trump. Commodity prices rose slightly, while precious metals saw a sharp increase and agricultural goods fell significantly.
Despite macroeconomic uncertainty, the advertising marketing continued to grow in 2024. According to Zenith’s forecasts in December 2024, global advertising spend grew an estimated 8% in the year to reach USD 947 billion, marking an acceleration following 5% growth in 2023 and 6% growth in 2022.
Despite an uncertain macroeconomic environment, the advertising market continued to grow in 2024. According to Zenith’s December 2024 forecasts, global advertising spend grew 8% in the year, to reach USD 947 billion, accelerating after growth of 5% in 2023 and 6% in 2022.
In this context, the Groupe continued to offer its services and products through a unique business mix and positioning, to help its customers transform their marketing and business models.
This enabled the Groupe to achieve another record year by becoming the world’s leading communication group in 2024.
The Groupe’s net revenue amounted to euro 13,965 million, compared to euro 13,099 million in 2023, up +6.6% on a reported basis and +5.8% on an organic basis.
The operating margin was euro 2,519 million, up 6.6%, resulting in an operating margin rate of 18.0%, maintained at the same record level as in 2023.
The Groupe’s net income was euro 1,660 million in 2024, up 26.5% compared to 2023.
Headline net income (as defined in Note 11 of the consolidated financial statements) amounted to euro 1,851 million, compared to euro 1,767 million in 2023. Headline diluted earnings per share was euro 7.30, up 4.9% compared to 2023.
As of December 31, 2024, the balance sheet showed a net cash position of euro 775 million, compared to net cash of euro 909 million as of December 31, 2023. The Groupe’s average net financial debt for the year was euro 585 million, compared to euro 432 million in 2023.
The dividend that will be proposed to the General Shareholders’ Meeting on May 27, 2025, is euro 3.60 per share. Based on headline diluted earnings per share, this represents a payout ratio of 49.3% in line with the dividend payout policy, which ranges between 45% and 50%. Subject to the approval by the General Shareholders’ Meeting, the dividend will be paid on July 3, 2025, entirely in cash.
