Omnicom topped Q3 earnings expectations but saw revenue declines of 1.7% in Canada.

The company’s profits of USD $372 million were up 2% compared to the third quarter of 2022, while reported revenue in the third quarter of 2023 increased 3.9%, to USD $3.58 billion.

Organic growth by region in the third quarter of 2023 compared to the third quarter of 2022 was: 2.7% for the U.S., 5.7% for what the company refers to as ‘Euro markets and other Europe,’ 4.4% for the United Kingdom, 19.2% for Latin America and 2.5% for Asia Pacific.

Organic revenue decline by region was: 10.8% for the Middle East and Africa and 1.7% for what it refers to as ‘other North America’ (which includes Canada).

“We are pleased with our strong organic revenue growth of 3.3%, with notable performances in our advertising and media, precision marketing, and healthcare disciplines,” says John Wren, chairman and chief executive officer of Omnicom Group, which includes creative networks such as DDB, BBDO and TBWA.

In the company earnings call, Wren says the company faced headwinds such as a decrease in tech and telco spend, the Hollywood strike, the auto strike and geopolitical events like those in Israel and Ukraine. However, he noted that Omnicom continued to post strong profitability and earnings growth in the quarter.

The company is seeing new business momentum through clients such as Uber, HSBC, Under Armour, Nivea and Coppertone-maker Beiersdorf, and Novartis. With new business wins, Wren says Omnicom is “set up very well to have a very successful 2024.”

Wren said there has been a significant expansion in its media business and its CRM business is strong.

Organic growth by discipline in the third quarter of 2023, ending September 30, compared to the third quarter of 2022 was as follows: 6.1% for advertising and media, driven by strength of media business globally; 4.3% for precision marketing, 3.8% for healthcare and 9.2% for experiential.

Organic decline by discipline was as follows: 5.5% for PR, 3.6% for execution and support, and 1.7% for commerce and branding, the latter thanks to declines in shopper marketing business. Wren attributes the PR slump to 2023 not being an election year in the U.S.

This October, Omnicom shop Critical Mass won the BMW media remit in Canada, taking over duties from Media Experts.