Q2 Financial report release, some of the four major advertising groups are happy and some are worried | Financial report interpretation

Recently, the Payon Group, Epei Group, Hongmeng Group, and S4 Captial have released 2022Q2 financial reports.

01

Popularity Group: Q2 organic income increased by 10.3%, 43%of employees increased salary

In the second quarter of the Page, the growth rate of 10.3%of the organic income and net income growth of 21%, the net income reached 3 billion euros. The holding company has also raised the expected organic income growth throughout the year.

The forecast of the Gongliu Group raised the expectations of organic growth to 6%-7%, higher than the 4%-5%growth of the previous forecast. The chairman and CEO Arthur Sadoun said that the growth of the Gongli Group in 2022 is expected to consider the current global "uncertainty", such as the impact of the economy on advertising expenditure.

Sadoun also said he did not see any customer cut expenditure. In addition, he said that the Pavilion Group will not lay off layoffs, and so far, the company has recruited 7,000 new employees, which is basically the same as that of 9,000 people in the same period last year.

In the first half of this year, the organic income of the Page Group increased by 10.4%. Organic growth is a key financial indicator that considers the impact of acquisitions, asset stripping and exchange rates. Compared with the number before the 2019 new crown epidemic, the organic revenue of the Popularity Group increased by 12%this quarter, an increase of 11%in the first half of the year.

The Pavilion Group has stable income growth in all regions. Among them, 10.1%and 10.7%of the United States and Europe have increased organizational growth, and 6.5%of Asia has increased. Despite the recent blockade of the new crown epidemic, China has maintained a positive growth, an increase of 2.7%. Publicis Sapient and Epsilon have increased by 19.1%and 13.7%, respectively.

"We have not seen any form of customers cut budgets, because they know ... It is easy to lose market share, and it is very difficult to win back the market share," Sadoun continues. "But this does not mean In the future, if the situation deteriorates, they will not cut advertising expenses in the future. "

Since the beginning of 2022, the Gongliu Group has raised nearly 43%of employees. Last year, 65%of employees received salary increases.

02

Hongmeng Group: Q2 revenue has decreased slightly, but the growth rate of organic income is 11.3%

Hongmeng Group's report in the second quarter of organic income growth rate was 11.3%, and each business department and region increased, and once again increased the organic income forecast this year, which marked the fifth consecutive quarter of the holding company Essence

Although organic revenue has increased, the revenue of Hongmeng Group has decreased by 0.1%compared with the same period last year to US $ 3.567 billion. It attributed this to the negative impact of foreign exchange rates and the group withdraw from the Russian market.

The net income of Hongmeng Group in the second quarter increased by 0.1%to $ 348.4 million.

In addition, the organic income of all the basic businesses of Hongmeng Group has increased compared with the same period last year: 8.2%of advertising and media, accurate marketing 21.0%, 11.2%of business and brand consulting, 36.6%of the experience business, 9.3%execution and support, publicly public, public The relationship is 15.8%, and healthcare is 9.2%.

Except for the restrictions on the blockade of China's new crown epidemic, organic income in other regions has increased. The organic growth of the United States is 10.7%, the other North America is 12.5%, the UK is 12%, the other regions of Europe are 15.1%, the Asia -Pacific region is 4.7%, the Latin America is 14%, and the Middle East and Africa are 28.3%.

John Wren, chairman and CEO of Hongmeng Group, said at the conference call, "It is expected that organic income will increase by 6.5%to 7%throughout the year, and the profit margin will continue to be strong. The growth of organic income has increased. In February, the company predicted that organic income this year would increase by 5%to 6%. "

03

Epei Group: Organic net income increased by 7.9%

The Q2 quarterly report of Epei Group reported 7.9%of organic net revenue growth, and net income increased by 4.7%year -on -year, making the revenue of the holding company reached 2.38 billion US dollars. Based on this Growth expectations.

In the last quarter, Epei's organic growth was expected to adjust to 6%. Now the company is expected to have more than 6.5%of organic growth throughout the year.

At the financial report conference, IPG CEO Philippe Krakowsky said, "People are facing the so -called" macroeconomic and geopolitical and geopolitics uncertainty, some customers are asking for formulating 'emergency plans'. "

Krakowsky said: "Although the current environmental situation is constantly changing, we see that the customer's demand for advertising business services is still extensive. We will strive to achieve this year's growth expectations. The slowdown of the macroeconomic situation is incorporated into their current plan. But this is very different on the basis of each industry. Marketing personnel are also considering the unfavorable factors from the market during the economic slowdown, especially in the short term or not. Severe economic slowdown. "

The US market accounted for 66%of the net income of Epei Group this quarter, with an organic growth of 8.3%; the international market accounted for 34%of the net income of this quarter, an organic growth of 7.1%. Empe Zhi's various business departments also have growth: the media, data and participation solutions are composed of digital and business agents (including MRM, R/GA, and Huge) of MediaBrands, Acxiom, Kinesso, and IPG, with an organic growth of 6.2% Essence

Epei's comprehensive advertising and creative leading solutions, including McCann, IPG Health, Mullenlowe Group, FCB, and its domestic comprehensive agents, organically increased by 8.5%. Epei's professional communication and experience solution department-IPG DXTRA and DXTRA Health, Weber Shandwick, GOLIN, Jack Morton, Momentum, and Octagon have achieved 11.1%organic growth.

04

S4 Capital reduces annual income goals, and the cost of content has soared

In the second quarter, S4 Capital issued a profit warning and will be frozen in recruitment in the remaining time this year, because the company discovered the cost in content practice soaring.

The marketing service network has an agency company including Media.monks, and recently announced its latest merger transaction with social media marketing institutions XX Artists. Unable to meet profit expectations.

“虽然收入和毛利/净收入的增长仍然强劲，即使与2021年第二季度非常强劲的比较数据相比也是如此，但持续大量的招聘投资和随之而来的公司成本基础的扩大，特别是In terms of content practice, the first half of the EBITDA (unparalleled interest, tax depreciation and amortization before the profit) and EBITDA's profit margin had a negative impact, "the statement explained.

S4 Capital said that compared with the same period in 2021, the company achieved 66%of revenue growth in the second quarter. However, in order to meet expectations, it will need to pay more attention to profitability in the second half of this year. Therefore, the board of directors has reduced the revenue target of this year to US $ 143 million (£ 120 million), while analysts' forecasts were US $ 184-197 million (£ 1.54-165 million).

The company's data and digital media and technology departments are expected to maintain "healthy" development, but the increase in content business costs has affected this year's operating profit margin, and the increase in recruitment and employee costs will continue to exceed the growth rate of gross profit/net income.

It is reported that other advertising groups will also release the second quarter financial report. Stagwell will release a financial report on August 4, and the Dentong Group will follow closely and release the Q2 financial report on August 10.

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