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Accenture ‘especially pleased’ with success of ad arm which saw 20% yoy growth

Accenture’s chairman and CEO, Pierre Nanterme (pictured), said in its latest quarterly earnings call that the company is “especially pleased” with the success it had in growing Accenture Interactive to become the “market leader operating at scale” for renowned brands such as Radisson Hotel Group and Maserati. He added that the “new” section of its business – digital, cloud and security-related services – have become core to its business, accounting for approximately 60% of total revenues for 2018.

“Our growth strategy and innovation-led approach are clearly resonating with our clients. With our durable business model and disciplined management, we are very well-positioned to continue gaining market share and delivering value for our clients and shareholders,” Nanterme said. Accenture’s chief financial officer, David Rowland, added that digital, cloud and security-related services, including Accenture Interactive, Accenture Applied Intelligence and Industry X have grown 20% year-on-year.

“When you look at our cloud-related services and security, all of those businesses are contributing with strong double-digit growth to the overall numbers that we very often talk about with respect to ‘the New’. These are very attractive markets. We are in and strengthening our leadership position in each, and we’re benefiting from the growth that goes with it,” Rowland said.

Earlier this year, Accenture Interactive unveiled a new programmatic practice called Accenture Interactive Programmatic Services, signalling its increasing investment and move into programmatic in-housing and media planning and buying. Meanwhile, its relationship with BMW Group was expanded in May this year through the delivery and support of content and features across its digital channels globally.

Accenture posted an 11% increase in net revenue of US$10.1 billion in the fourth quarter of its financial year ended 31 August 2018 (Q4 2018). Its communications, media and technology group, in particular, saw a 15% increase in revenue to US$2.09 billion in Q4 2018.

Accenture’s growth markets saw the most increase (12%) in terms of geographic region, amassing a revenue of US$2 billion. Its North America business had an 11% increase in revenue to US$4.71 billion, while Europe had a 10% increase to US$3.44 billion.

The company expects revenues for the first quarter of its 2019 financial year to be in the range of US$10.35 billion to US$10.65 billion, according to the financial statement. In the meantime, Accenture expects revenue growth in 2019 to be within the range of 5% to 8% in local currency.

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