Omnicom UK revenue drops 10% after sterling collapse

The recent collapse in sterling has dragged down Omnicom's UK revenue after it fell more than 10% during the last quarter.

Omnicom CEO John Wren
Omnicom CEO John Wren

The owner of the BBDO and OMD networks reported that UK revenue contracted by 10.4% over the three months to 30 September to $347.9m (£282.81m). 

On a constant currency basis, Omnicom’s UK growth was 5.2% and outperformed North America (1.7%) and the rest of Europe (2%) compared to the same quarter last year, while Omnicom’s worldwide revenue increased 2.3% to $3.71bn (£3.02bn).

The US company's UK business has been affected by the 18% fall in the value of the pound against the dollar since the UK voted to leave the European Union in June. 

The group’s advertising division reported a 3.6% increase in organic revenue for the third quarter, which fared better than CRM (up 1.6%), but was less than public relations (up 4.4%).

For the first nine months of 2016, Omnicom’s UK growth has shrunk 5.3% to $1.05bn, or grew 3.6% on a constant currency basis.

During the last quarter Omnicom’s biggest UK ad agency, Abbott Mead Vickers BBDO, lost Sainsbury's creative account to independent shop Wieden & Kennedy. Omnicom then shut media agency M2M in the UK last month following a string of account losses.

Omnicom’s operating income was up 5.8% to $453.1m (£368.97m) for the quarter year on year, while earnings before interest, taxes and amortisation of intangibles was up 6% to $482.1m. 

Become a member of Campaign from just £46 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk plus get exclusive discounts to Campaign events

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content

Share

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).