Growth across all disciplines and geographic markets helped Omnicom keep its earnings strong, despite the impact of economic pressures in the marketing and advertising sector.
Organic revenue grew by 5.2% in the three months ending March 31, despite the macroeconomic factors Omnicom’s clients are currently facing. Chairman and CEO John Wren attributed this to the company’s “highly-specialized marketing and communications services driven by leading analytics, creativity, data and digital media solutions.”
Omnicom also managed to deliver net income growth of 30.9%, despite operating expenses also going up slightly by 1.3%. The company also took a $119.2 million USD charge for real estate repositioning as it aims to cut long-term costs related to its office footprint. This is one “operational step” the company took in the quarter to “mitigate the impact of potential macro headwinds on our profitability,” Wren said.
Omnicom’s advertising and media division, which brings in more than half of the company’s revenue, grew by 5.1% on an organic basis. Precision marketing revenue grew by 7% and PR by 5.8%, while experiental revenue was the fastest-growing at 8.4%.
By geography, the company’s “Other North America” segment – which includes its Canadian operations – has organic revenue growth of 6.6%. The U.S. – Omnicom’s largest market – grew by 5.1%, while Latin America was the fastest-growing at 12.2%.
Looking ahead, Omnicom said it is on track for between 3% and 5% organic revenue growth for the full year.