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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