Ben Bold
Oct 16, 2019

Omnicom falls short but still posts 2.2% organic growth in Q3

Organic growth was only up 0.4% in Asia-Pacific

Omnicom: wins this year include Virgin Media
Omnicom: wins this year include Virgin Media

Omnicom posted organic growth of 2.2% in the third quarter of 2019, in contrast to Publicis Groupe, which last week reported a 2.7% decline.

The US-owned ad holding group reported that total revenue fell 2.4% to $3.6bn in the third quarter, compared with $3.7bn in the same period last year, blaming the "negative effects of foreign exchange rates" and a "decrease in acquisition revenue".

Analysts said revenue fell short of the expected figure of about $3.65bn, according to Institutional Brokers Estimate System data from Refinitiv.

The 2.2% organic revenue growth figure is down from 2.9% for the same period in 2018.

Across its global operations, Omnicom said organic growth was up 3% in the UK, 2.7% in the US, 1.6% in euro markets, 0.4% in Asia-Pacific and 6.6% in Latin America. In the Middle East and Africa, growth fell 4.5%.

Organic growth was helped by an overall 3.4% hike in advertising worldwide, a 1.8% boost to CRM consumer experience and a 9.5% increase in healthcare. However, CRM execution was down 1.5% and PR fell 3.8%.

With net income totalling $290.2m in the third quarter, down 3% year on year from $298.9m, Omnicom said that its performance was hit by a tax increase of $18.2m and other charges. Without these, it said net income would have increased by 3.4%.

Publicis' third-quarter figures saw the French group report a revenue decline of 2.7%, with its performance affected by adspend cuts and the bedding in of acquisitions leading to management taking its "eye off the ball".

Source:
Campaign UK

Related Articles

Just Published

13 hours ago

Purpose, laughs, and boppable tunes: Spikes jury ...

SPIKES ASIA X CAMPAIGN: Presidents and members of several Spikes Asia juries share the top trends they spotted in the jury Zoom rooms, with video examples.

14 hours ago

Crash Course: How to tell engaging short-form stories

To round off a week of creativity-themed content during Spikes Asia X Campaign festival, this Crash Course provides useful tips on how to build story arcs and create thumb-stopping campaigns for short-form.

14 hours ago

Lessons from Tesla, Apple and yoga (yes, yoga) in ...

SPIKES ASIA X CAMPAIGN: Creatives need to drive relevance for sustainable options, instead of virtue-signalling about sustainability, argues Gulshan Singh of FCB Interface.

14 hours ago

Spikes Asia Awards 2021: Campaign's contenders 3

As the juries make their final selections ahead of the March 1 winners announcement, Campaign Asia-Pacific's editorial team has once again scoured through the 2021 shortlist to pick out the work we expect to win.