Lindsay Stein
Oct 17, 2018

APAC growth leads Omnicom to beat analyst expectations in Q3 earnings

The holding company's advertising business grew by 4% in the quarter.

APAC growth leads Omnicom to beat analyst expectations in Q3 earnings

Omnicom Group reported a 2.9% jump in organic revenue to $3.7 billion for the third quarter of 2018, year-over-year, beating analyst expectations.

Revenue was down, however, on a non-organic basis in Q3 by 0.1 percent. The group’s operating profit increased 6.8 percent to $502.3 million this period, compared to last, and net income increased 13.4 percent to $298.9 million.

Omnicom advertising business grew organically in Q3 by 4% to $1.9 million, with CRM consumer experience up 5.5%, PR up 2.3% and healthcare up 2.9%. CRM execution and support decreased 3.6 percent in the period.

Regionally, Omnicom saw the most organic growth in Asia Pacific in Q3, which was up 13.6%, year-over-year, followed by Euro markets and other Europe (6.9%); Latin America (1.7%); and nearly flat growth of about 0.6% for the U.S. Other North America markets saw a decrease of 5.4%, with the UK down 0.3% and the Middle East and Africa down 0.4%.

Omnicom cut about 8,400 positions worldwide this past quarter as it sold 19 businesses in an effort to push digital advertising forward, according to Reuters.

Source:
Campaign US

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