Omnicom's profits surge 19 per cent to buck market trend

By JEREMY WHITE,, Friday, 27 July 2001 12:00PM

Omnicom Group has announced a rise in profit for the second quarter

this year of 19 per cent to $151.4 million, bucking the trend of

other holding companies.

Omnicom's worldwide revenue was up 15 per cent to $1,746.8

million in the second quarter. Conversely, Interpublic Group recently

issued a profits warning, while WPP stated that a weaker US economy

would damp revenue growth in the medium term and projected revenue would

grow 7 per cent for the year.

John Wren, the chairman of Omnicom,praised the performance of Omnicom's

media network, OMD, but said there was still restructuring to be done.

Speaking about OMD in light of several global media consolidations this

week, Wren said: "We are changing the organisation. We are not quite

done yet and we're not quite in agreement as to how to do it but I think

we'll reach agreement in the third or fourth quarter."

Simon Wallis, an analyst at West LB Panmure, said: "Omnicom has been

gaining market share and it has some of the best agency brands. It

bought at the right time and in a downturn will have a clean balance

sheet and financial clout to buy again."

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