Omnicom profits rise by 11 per cent

Omnicom Group has reported an 11 per cent rise in profits, fuelled by new-business wins and increased spending from existing clients.

The world's biggest advertising group has been boosted by substantial account wins including Capital One, Bank of America and the US home improvement retailer Lowe's.

Bank of America selected a team of Omnicom shops, including BBDO and OMD, for its $600 million account in August. The following month, BBDO and OMD were appointed to head Lowe's $315 million business.

The chief executive of Omnicom, John Wren, described the company's third-quarter new-business performance as "the best in our history".

The group said third-quarter net income rose to $161.7 million from $145.3 million in the third quarter of 2004.

Worldwide revenue increased by 9 per cent to $2.52 billion and US revenue grew by 13 per cent to $1.4 billion.

The news comes less than a week after Omnicom acquired the brand licensing agency The Beanstalk from the Ford Motor Group. Beanstalk's list of clients includes AT&T, Harley Davidson and Ford.

- Comment, page 52.