Organic growth up at Omnicom in Q3

Revenue fell at the holding company, although it was largely attributed to stronger foreign exchange rates.
johnwren

Omnicom once again felt the impact of foreign exchange rates on its quarterly financial results, but positive organic growth continues to paint an optimistic picture for the future.

The U.S.-based holding company reported a 2.5% year-over-year drop in revenue for Q3, as well as a 3% dip in net income.

However, the company cited the impact of foreign exchange rates (specifically, a strong U.S. dollar) and a decrease in revenue from acquisitions for the declines. Revenue from organic growth, which excludes the impact of exchange rates and acquisitions, was up 2.2% for the quarter and is up 2.5% for the year so far.

Looking at organic growth within specific disciplines, healthcare increased by 9.5% in Q3, advertising increased by 3.4% and CRM Consumer Experience increased 1.8%. Organic growth in CRM Execution & Support (which covers services like field marketing, point-of-sale, sales support and merchandising) decreased by 1.5% in Q3, while Public Relations decreased by 3.8%. All of the growth in Q3 is largely in line with trends the company has seen in 2019 so far.

Region-by-region, organic growth was up by 2.7% in the United States in Q3, 2.7% for the rest of North America (and 6.9% for the year-to-date), 3.0% in the U.K., 1.6% for Europe, 0.4% for Asia Pacific and 6.6% for Latin America. Organic revenue was down 4.5% in the Middle East and Africa, though year-to-date growth for the region sits at 0.4%.

Some of Omnicom’s agencies in Canada include BBDO, DDB, TBWA, Critical Mass, Hearts & Science, OMD, Touché! and PHD.

Tags: