Publicis Groupe says it is looking for more bolt-on acquisitions after hailing the growth of its digital and data-driven businesses Epsilon and Sapient – acquired by the French agency giant for a combined £5.7bn – for driving a 20% rise in revenue in 2022.
Overall, the third-largest marketing services group in the world recorded organic growth of +10.1% in 2022, with net revenue reaching €12.57bn (£11.17bn), against €10.49bn (£9.32bn) in 2021, despite a challenging year marked by inflation, Covid-19 in China and a slowdown in global adspend.
Epsilon, which was acquired for $4.4bn (£3.4bn) in 2019, recorded organic growth of 12%, while Sapient, bought for $3.7bn (£2.3bn) in 2015, performed even better, witnessing organic growth of 19%.
In a call to journalists, Publicis Groupe chairman and CEO Arthur Sadoun said: “Now, we’re on the lookout for so-called bolt-on acquisitions.”
Publicis has said its expects organic growth of between 3% and 5% this year, and sees a major move towards data-driven TV, as well as retail media and first-party data.
Sadoun continued: “There is an underlying trend towards our clients who say: instead of going to invest on CNN, we’re going to go to Walmart.com because by definition it’s more efficient, it’s more direct, I’m building a direct relationship with my consumer.”
In a statement, Sadoun added: “For the second year in a row, we delivered double-digit organic growth and record-high financials, with Q4 well ahead of expectations.
“Today, the profound transformation we have been through means our business is firing on all cylinders, allowing us to outperform the market once again on every KPI.
“Thanks to our data and technology capabilities, which now represent a third of our revenue, we have been able to continue to capture the shift in our clients’ spend towards first party data management, commerce and business transformation. That dynamic has also boosted our creative and media business, and is reflected in all of our regions.
“Last but not least, our unique platform organisation, with our global delivery centres, our shared services and our country model, powered by Marcel, allowed us to deliver best in class financial ratios while maintaining record-high bonuses and rewarding everyone in our group.”
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