Omnicom pre-tax profits rise 7% in final quarter of 2014

Omnicom, the owner of the BBDO and OMD networks, has reported income before income taxes of $549.4 million (£360.7 million), up 7.4 per cent year on year.

John Wren: president and chief executive officer of Omnicom
John Wren: president and chief executive officer of Omnicom

According to Omnicom’s 2014 full year’s results the group’s global revenue reached $4.20 billion in the last four months of 2014, up 3.4 per cent year on year.

The UK business, which included Abbott Mead Vickers BBDO and Adam & Eve/DDB, reported organic revenue growth of 6.2 per cent in the fourth quarter and was beaten only by North America, which increased by 8.3 per cent. 

Omnicom said its Q4 2013 figures include $13.3 million in costs relating to the failed merger with Publicis Groupe. If those are excluded its income before income taxes increased by 4.7 per cent.

Across the full year Omnicom reported revenue of $15.32 billion, up 5.0 per cent year on year, led by the US. The group’s international revenue, which includes the UK, was $7.17 billion, up 2.1 per cent year on year. 

On an organic basis, Omnicom’s UK revenue climbed by 5.2 per cent across 2014 as a whole.

Organic revenue in the rest of Europe increased by 1 per cent, the group’s North American business grew by 7.5 per cent on an organic basis, Asia-Pacific by 4.5 per cent, Latin America by 4 per cent and Africa and the Middle East by 10.1 per cent.

Omnicom’s income before income taxes in 2014 increased to $1.81 billion, up 9.0 per cent year on year.