Publicis ups 2023 targets as it continues shift towards data and tech

By Olivier Sorgho and Stephanie Hamel

(Reuters) - Publicis, one of the world's top advertising groups, on Thursday slightly raised its full-year targets after posting 7.1% organic revenue growth in the first half, helped by its shift towards digital marketing.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 3.7% to 1.335 billion euros ($1.50 billion) on net revenue of 6.32 billion euros in the six months to end-June, Publicis said.

The parent company behind agencies such as Leo Burnett and Saatchi & Saatchi, now expects organic net revenue to grow around 5% this year, against a previous outlook for it to reach the upper bracket of 3%-5%, and after 10% plus last year.

The maker of the Heineken and Barilla pasta campaigns referenced "persistent macroeconomic uncertainties" as it presented a more modest forecast when compared to two previous years of double-digit growth.

It also updated its full-year operating margin forecast and now sees it close to the 18% posted in 2022, against a previous outlook of between 17.5% and 18%.

Asked to comment on speculation that tycoon Vincent Bolloré, the owner of French media giant Vivendi, may want to buy Publicis, Chief Executive Arthur Sadoun told Reuters that "independence is in our DNA."

Publicis has been focusing on expanding its digital footprint to compete against Google, Meta and Amazon. Investments in data and tech have been bearing fruit, with its Epsilon and Publicis Sapient units generating a third of group revenue.

The company is seen as attractive for investors. Its shares have roughly tripled since early 2020 when the pandemic hit, making Publicis, worth around 18.2 billion euros ($20.39 billion, the largest advertising agency today by market cap.

($1 = 0.8928 euros)

(Reporting by Olivier Sorgho and Stéphanie Hamel, editing by Kirsti Knolle and Chris Reese)