Omnicom grows 8% in UK as first quarter earnings beat estimates

Omnicom's UK revenue has jumped to more than 8% for the first three months of 2017, as the owner of BBDO and PHD's European business outperformed North America.

Sainsbury's: Omnicom's PHD has held the media account for 22 years
Sainsbury's: Omnicom's PHD has held the media account for 22 years

The world’s second-biggest advertising company announced UK organic growth for the first quarter of 2017 was up 8.1% year on year, compared to 8.2% in the Euro markets and other Europe.

Omnicom’s organic growth was 1.1% in North America – its worst performing region over the same period – compared to 5.4% in Latin America and 37.9% in the Middle East and Africa. 

The company’s worldwide revenue for the quarter increased 2.5% to $3.59bn (£2.84bn). This was partially hit by a relative strengthening of the dollar. Omnicom said the negative foreign exchange impact was 1.2%. 

Advertising was the highest growing part of Omnicom’s business over the quarter – up 6.4%  followed by speciality communications (3.3%), CRM (2.1%) and PR (1.8%). 

Meanwhile Omnicom’s operating profit was up 4.5% year on year to $409.9m.

During the first quarter TBWA bought a majority stake in independent creative agency Lucky Generals, while earlier this month media shop Goodstuff Communications bought Omnicom’s 20% stake to become fully independent. 

On the new-business front, Omnicom's PHD was told in February that it had lost Sainsbury's £100m media business to M/Six. The review was restarted last month after PHD protested.

Today’s first quarter results were ahead of investors’ expectations, reported the Associated Press, after Omnicom announced it had net income of $1.02 per share, compared to Zacks Investment Research’s expected 96 cents per share. Omnicom’s shares have increased 1% since the beginning of the year.

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1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).