Omnicom’s 13% revenue growth in Q2 exceeds expectations
Omnicom Group generated net income of over USD 318 million in the second quarter 2014, which marks a 13 per cent increase in comparison to the same period last year.
The company’s Q2 earnings statement indicated that the revenue for Q2 increased by 6 per cent to USD 3.87 billion. This has been touted as Omnicom’s fastest growth in two years. In an analyst call, Omnicom CEO John Wren said, “It was a solid quarter for Omnicom on all fronts.”
Across its regional markets for the six months ended June 30, 2014, organic revenue increased 6.4 per cent in North America, 2.2 per cent in Europe, 5.4 per cent in Asia Pacific, 7.6 per cent in Latin America and 4.2 per cent in Africa/Middle East when compared to the same period in 2013.
The change in organic revenue in the six months of 2014 compared to the same period in 2013 in its four fundamental disciplines was: advertising increased 7.8 per cent, CRM increased 2.7 per cent, public relations increased 2.7 per cent and specialty communications increased 2.5 per cent.
It should also be noted that Omnicom’s Q1 numbers were weighed down by USD 7 million in expenses related to the planned merger with Publicis Groupe that was subsequently terminated. Those expenses shrank to just $1.8 million in Q2.
Omnicom ended the first half with net income of USD 520 million on revenue of USD 7.37 billion, up 8 per cent and 5 per cent, respectively, from the first six months of 2013.
