Publicis brushes off tariffs as Omnicom reduces low-end forecast
First quarter reporting for global holdcos has seen France-based Publicis Groupe stick to a strong revenue growth forecast while US-centric Omnicom has pulled back its low-end expectations to reflect the market turmoil.
Omnicom said its modelling saw total 2025 organic revenue growth sitting at 2.5% in the worst case, down from an earlier prediction of 3.5%, as a reflection of “increased volatility in the economy and the markets.”
Speaking at Omnicom’s investor call yesterday (April 15 US time), CEO John Wren said “we’re assessing the implications of these events to determine how they will affect our clients and our business.”
Omnicom reported organic growth of 3.5% in Q1, with the US and Asia Pacific markets contributing most of that. The UK went backwards slightly. The business continues to expect its proposed merger with IPG will go ahead in the second half of 2025, bringing with it organic growth benefits.
Publicis earlier earnings call saw stronger results – organic growth of 4.9% – and a belief the business would withstand global economic turmoil to post full year growth of 4-5%. All Publicis’ regional markets were in organic growth with Asia Pacific sitting at 4.8%, driven by strong results in China (up 9.3%).
Arthur Sadoun
Publicis chair and CEO Arthur Sadoun said in a statement that the results were caused by “a dozen material wins across diverse sectors” that will “allow us to offset the potential effects of the deteriorating macroeconomic context”.
Australia was not broken out in Omnicom and Publicis’s reporting, although the latter’s acquisition of Atomic212 did rate a mention.
Havas last week gave its Q1 numbers and forecast, with organic growth at 2.1% and an expectation it would sit above 2% for the full year.
“Since early April 2025, macroeconomic uncertainty has been growing following the announcement by the US Administration of protectionist measures, potential or already in effect, and the reactions that these measures have triggered. As advertising is, by nature, a regional and/or local service business, Havas has not observed at this stage any direct impacts of the new tariffs on its business.”
WPP and IPG will deliver their Q1 earnings and outlooks next week. Dentsu’s equivalent earnings call is expected in May.
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