Credit: Ethan Sykes via Unsplash
Omnicom posted organic revenue growth of 3.9% to $US5.6 billion for its core business in the March quarter, reporting progress in its expanded target for cost cutting following the takeover of IPG.
The growth number is calculated without those parts of the business, so far unnamed, that are marked for sale.
The global advertising group, now the world’s biggest, wants $US1.5 billion in savings over the next thirty months, starting with $US900 million this year.
Expenses in the March quarter include $US59.4 million of integration and transaction costs related to the acquisition of IPG, $4.1 million of repositioning costs and $34.3 million of loss on planned sales.
Salary and service costs, with the addition of IPG headcount, increased $1.9 billion to $4.6 billion.
CEO John Wren said the performance of the new Omnicom reflects new integrated capabilities, core portfolio operations and successful integration activities.
“With the largest global media platform, proprietary data and identity capabilities, and our AI-powered Omni platform in full operation, we are uniquely equipped to help clients address an increasingly fragmented and complex marketing environment,” he said.
"We are also on track to achieve substantial cost reduction synergies and $3.5 billion in share repurchases this year under our $5 billion authorisation.
“This combination of operational excellence and disciplined capital allocation positions us to deliver profitability and earnings-per-share growth that will set a new standard for our sector."
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