Omnicom enjoys PR and DM prosperity as profits surge
By Ian Darby, campaignlive.co.uk, Friday, 16 February 2007 12:00AM
Omnicom boosted its profits by 9.3 per cent for 2006 on the back of a revenue increase of 8.5 per cent following strong performances from its PR and direct marketing businesses.
Its profits hit $864 million, up from $790.7 million in 2005, and revenues rose to $11.4 billion, from $10.4 billion the year before.
The full-year performance followed a strong fourth quarter, which saw profits rise by 9.7 per cent to $277.2 million.
Omnicom, led by its chief executive, John Wren, said the largest revenue growth came from its CRM and PR businesses, which grew by 13 per cent and 10 per cent respectively across the year. Advertising revenues, in comparison, grew by just 6 per cent.
Wren said that the revenue growth across the year and the full quarter was strong in all markets except for Japan and predicted a surge in client spend in the US in the second half of 2007. He added that Germany and Spain were the holding company's strongest-performing European markets, with the UK and France improving in the final quarter.
Omnicom is focused on growth in Asia, and Wren said that while China remains its priority, it is also investing significantly in India.
This article was first published on campaignlive.co.uk
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