Omnicom reports 1.2% fall in pre-tax profits for 2015

Omnicom, the owner of the BBDO and OMD networks, has reported income before income taxes of $1.78 billion, down 1.7 per cent year on year.

John Wren: Omnicom's chief executive
John Wren: Omnicom's chief executive

In its financial results for the 12 months ending 31 December 2015, Omnicom’s global revenue dropped by 1.2 per cent to $15.13 billion last year after the holding company was hit negatively by currency movements.

Organic revenue at the UK business, which includes Adam & Eve/DDB, Abbott Mead Vickers BBDO and Manning Gottlieb OMD, was up by 7.1 per cent year on year.

The group’s earnings before interest, taxes and amortisation of intangibles (EBITA) decreased by 1.1 per cent to $2.03 billion last year compared to 2014.

Omnicom reported a 5.3 per cent growth in organic revenue. The negative impact of foreign exchange rates amounted to a 6.6 per cent revenue decrease when compared to 2014.

In the fourth quarter of 2015, the group’s worldwide revenue decreased 1.0 per cent year on year to $4.15 billion.

While organic revenue increased by 7.1 per cent in the UK last year, it increased by 5.4 per cent in North America, 3.7 per cent in Europe (outside of the UK), 7.9 per cent in Asia Pacific, and 6.8 per cent in Africa and the Middle East. Organic revenue decreased by 3.3 per cent in Latin America.

In 2015 Omnicom’s global revenue from advertising increased by 9.3 per cent, while CRM increased by 1.9 per cent and specialty communications by 2.2 per cent. Public relations revenue decreased by 1.4 per cent.


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