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PARIS—Publicis Groupe SA's first-quarter sales growth beat analysts' expectations on Tuesday, but the advertising company warned that a loss of key clients last year would erode revenue in the coming months.

Publicis said sales over the first three months of the year rose 8.9% to €2.3 billion ($2.6 billion) from the same period last year as the group benefited from a number of new account wins at the end of last year and strong performances in the U.S. and Europe.

Stripping out acquisitions, disposals and currency swings, sales grew 2.9%, exceeding analysts' expectations of 0.3%, but still far away from the company's historic growth levels.

"The next two quarters will be more difficult," Publicis Chief Executive Maurice Lé vy told reporters. "That's when we'll feel the full brunt of the account losses from last year."

The French owner of agencies such as Saatchi & Saatchi had warned investors to expect "modest growth" in 2016 as the company focuses on an internal reorganization and the continued integration of Sapient Corp., the U.S.-based digital agency that it bought last year.

The company is straining to recover lost ground after being hard hit by a wave of big advertisers reviewing their agency contracts in 2015. Publicis was a net loser of the reviews as long-standing clients including Procter & Gamble Co. and Coca-Cola Co. switched their accounts to competitors.

Publicis said sales from its digital operations—now accounting for 55% of revenue—grew 7.6% in the first quarter. Mr. Lé vy is betting that the recent addition of U.S.-based digital agency and consultancy Sapient to its roster of digital agencies will position the company at the vanguard of the digital transformation that is upending the ad industry and help the group return to faster growth.

Mr. Lé vy said the "uncertain" global economic environment could cause some clients to withhold advertising spending, but he expects all of his company's key financial indicators to expand this year, including revenue and earnings per share.

"We have made a promising start to 2016, both in terms of performance and our own transformation," Mr. Lé vy said.

Publicis' shares have fallen 15% over the last 12 months and are trading at a significant discount compared with key rivals like WPP and Omnicom.

Write to Nick Kostov at Nick.Kostov@wsj.com

(END) Dow Jones Newswires

April 19, 2016 03:35 ET (07:35 GMT)

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