by Stephanie Hamel
(Reuters) – Publicis announced on Thursday that it expects organic growth in its net income of between 4% and 5% this year, after a performance of +5.7% in the fourth quarter of 2023.
“In a particularly difficult macroeconomic context, and after six years of transformation, Publicis has clearly stood out in 2023,” said Arthur Sadoun, Chairman of the Management Board of Publicis in a press release.
The communications group said it expects an operating margin rate of 18% for 2024, stable compared to 2023, including an operational charge of 100 million euros dedicated to the investment plan in artificial intelligence (AI). ), in 2024.
British advertising group WPP said last week it expects its operating margin to increase slightly, by 20 to 40 basis points, in 2024.
Arthur Sadoun indicated that the group was aware of the macroeconomic difficulties and how they could affect its customers in 2024.
“We anticipate cuts here and there in traditional marketing (…) These customers will remain in a ‘wait-and-see’ attitude,” he declared during a conference call with journalists.
Publicis anticipates organic growth in the annual range in the first quarter of 2024.
The group’s net income stood at 3.54 billion euros in the fourth quarter of 2023, representing organic growth of 5.7%, in line with the latest outlook communicated by the group in October.
The group plans to set an envelope of between 700 and 800 million euros dedicated to targeted acquisitions, in order to strengthen its capabilities in the fields of data, technology, commerce and AI.
A share buyback program estimated at around 200 million euros is also planned.
Publicis is also proposing a dividend of 3.40 euros per share for the 2023 financial year, an increase of 17% over one year.
(With the contribution of Olivier Sorgho; French version Camille Raynaud, edited by Blandine Hénault)
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