Print Published 6th Feb 2019, 23:21

Publicis Groupe’s revenue fall offset by lower earnouts and tax

Publicis Groupe suffered a 3.9% fall in net revenue in 2018 but was able to report a 6.6% rise in post-tax profit after reducing its provision for earnout commitments relating to past acquisitions.

The £822 million (€919 million) profit was also helped by an 8.7% fall in the tax charge, assisted by changes to the US tax regime.

But the underlying performance showed no improvement in operating profit if amortisation, impairment charges and “non-current” items were to be excluded.  Nevertheless the margin achieved on that adjusted operating profit was a creditable 17%.  Even on an unadjusted basis, the margin was 14.5%.