BoAML: Publicis Groupe outperforms in Q2

Publicis Groupe has reported strong organic growth of 5% in Q2 2013. A research note from Bank of America Merrill Lynch today comments that this compares with company guidance of 1.8-2% given at the Q1 stage, and the concensus expectation of 2.6%.

The bank reports that this is a marked improvement on the 1.4% growth seen in Q1, with H1 revenues growing 8.7% to €3,351 million – 0.8% above the consensus.

Overall, earnings before interest, tax and amortisation were €462 million.

Publicis’ Q2 performance was driven by increasing growth in North America (7.7% in Q2 compared with 4.4% in Q1) and a relative improvement in Europe (-1% in Q2 compared with -6.5% in Q1). Digital revenues, which now make up 37% of the group, grew 13%.

BoFAML expects consensus financial year organic growth to move up from 3.2% to 3.6%, but sees greater upside in the share price of WPP than Publicis.

Indeed WPP shares rose 2.4% yesterday.

Digital revenues (37% of the group) grew 13% in Q2.