Omnicom reports 7% rise in pre-tax profit in Q2

By Arif Durrani, campaignlive.co.uk, Tuesday, 22 July 2014 02:30PM

Omnicom Group, home to BBDO, DDB Worldwide and Omnicom Media Group, has reported a 7 per cent rise in pre-tax profits to $514.7 million for the second quarter, on the back of recovering ad markets and strong organic growth.

John Wren: chief executive of Omnicom

John Wren: chief executive of Omnicom

Omnicom’s revenue for the quarter was up 6.4 per cent to $3,870.9 million, led by a 7.8 per cent rise in the US to $2,053.3 million and a 4.9 per cent lift in international revenue to $1,817.6 million.

Organic revenue – a measure excluding acquisitions, disposals and currency effects – grew 5.8 per cent. The strongest organic growth came from North America at 7.9 per cent, Latin America at 7.8 per cent and Asia Pacific at 5.1 per cent.

Advertising revenue across the portfolio was 10.5 per cent higher and the impact of foreign exchange rates increased revenue 0.7 per cent compared to the same period.

The results are notably better than Publicis Groupe’s second-quarter performance, with which a $35 billion merger was terminated in May 2014.

The Paris-based Publicis reported revenue down 1.5 per cent year on year and an increase of 0.5 per cent on an organic basis.

Omnicom’s results included a $1.8m pre-tax charge related to the abandoned Publicis deal, mainly composed of professional fees.

This article was first published on campaignlive.co.uk

X

You must log in to use Clip & Save

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus

Additional Information

Campaign Jobs