Omnicom reveals 12.2 per cent profit surge

Omnicom declared itself upbeat about the future this week on the back of fourth-quarter figures that saw profits rise by 12.2 per cent.

The world's largest communications group cited wins such as Subaru and Capital One, along with increased direct marketing spends, as the main reasons for a net income rise to $236.5 million.

"Our clients, with respect to overall marketing spending, are bullish compared with what we've seen in the past couple of years," John Wren, Omnicom's chief executive, said. "There are shifts from broadcast TV to other areas but we're very pleased with the increase in the budgets."

The group has also increased organic revenues, which exclude currency movements and acquisitions, by 6.4 per cent from the fourth quarter of 2003 to the corresponding period last year.

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OMNICOM'S RESULTS

- Fourth-quarter profit up 12.2 per cent to $236.5 million.

- US full-year revenues up 11 per cent to $5.2 billion. Rest of world up 16 per cent.

- Net income for year up 14.7 per cent to $723.5 million.

- Fourth-quarter organic revenues up 6.4 per cent.

- Fourth-quarter revenues up 8.6 per cent in US and 12 per cent in the UK.