BoAML: September slowdown for Publicis Groupe

Bank of America Merrill Lynch states that Q3 organic growth for Publicis Groupe was +2% and well below company guidance of 4% plus.

The bank says there was a marked downturn in September which declined 1.6% although October is expected to deliver modest growth.

Total revenues of €1627 million were up 15% supported by merger and acquisition activity and foreign exchange levels but below expectations.

Growth was driven by faster growing markets. The US saw an acceleration in Q3 (+3.2% versus Q2 +1.8%), driven by digital and the consolidation of Rosetta. Growth in Europe deteriorated further (-3.6% versus -1.6%) with France suffering in September in particular.

The analyst report highlights the slowdown in organic growth as a clear negative and that the recent downgrades will constrain share price performance.