trending Market Intelligence /marketintelligence/en/news-insights/trending/AqUCxJliJNDn-h_zekR7Dg2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

S&P downgrades Publicis to BBB over weak performance, revenues

Pandemic to propel rise of mobile payments in India's 781B point of sale market

Belarus: Pay TV, Broadband Market Overview

Global Operators Expand Integrated Access To OTT Services

European And U.S. Children Are Growing Up On SVOD TV Programming


S&P downgrades Publicis to BBB over weak performance, revenues

S&P Global Ratings downgraded Publicis Groupe SA's long-term ratings to BBB from BBB+, citing concerns over the advertising firm's operating performance and declining revenues.

The company is set to end the year with less profit, having revised its profit guidance to negative 2.5%, below S&P's previous projection of zero growth. Organic revenue growth for the first nine months of 2019 declined 1.4% year over year.

S&P attributes Publicis' revenue woes to the company's "weakening competitive position." Publicis has yet to reposition its subsidiary Sapient Corp. from project-based digital marketing services to long-term business transformation programs. Other vulnerabilities include its high exposure to fast-moving consumer goods and retail companies which show high attrition rates in traditional advertising, increasing competition from consulting firms and other new players, and the sensitivity of advertising revenues to GDP movements.

"We believe the group's performance could weaken further if there is a more significant and prolonged economic recession in the U.S and in Europe than our economists currently expect," S&P said, adding that these risks might make it difficult for Publicis to restore organic revenue growth and reduce its debt.

S&P projects Publicis to maintain strong cash flow of €1.3 billion to €1.5 billion annually, with anticipated debt to EBITDA of 2.0x and a free operating cash flow to debt ratio in the 25% to 40% range by 2021, despite its $4.4 billion acquisition of Epsilon Data Management LLC earlier in 2019.

The rating agency gave Publicis a stable outlook, reflecting their view that the company will successfully execute the transformation of Sapient and the integration of Epsilon, while implementing a conservative financial policy that will allow it to reduce its leverage to below 2x.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.