Omnicom reports 'robust' revenue with organic growth up 11.5%

Chris Pash
By Chris Pash | 20 October 2021
 
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Gloal advertising group Omnicom reported a 11.5% jump in organic growth for the three months to September.

Revenue was up 7.1% to $US3.435 billion compared to the same quarter last year. Operating profit rose 8% to $40.2 million. 

The US-based company joins Publicis Groupe which last week also reported superior growth for the third quarter. Publicis upgraded its full year forecasts as the global advertising company streaked past pre-pandemic levels, posting 11.2% organic growth.

Omnicom CEO John Wren described revenue growth as “robust" with improvement in all key financial measures and a notable jump in CRM Precision Marketing from digital transformation work.

“Our powerful and differentiated offering, which is tailored to our clients’ needs and is comprised of best-in-class talent, creativity, operating systems and technologies such as Omni, enables us to consistently orchestrate better outcomes for clients and win new business," he says.

"It is a formula that delivered for us in the third quarter, and will drive our ability to meet our clients’ growing demands in an increasingly complex marketing landscape.”

Regional growth numbers:  7.7% for the United States, 20.2% for Other North America, 11.4% for the United Kingdom, 14.9% for the Euro Markets & Other Europe, 19.6% for Asia Pacific, 15.9% for Latin America and 24.3% for the Middle East & Africa.

The September quarter numbers:

omnicom q3 2021

COVID-19 Business Update:
"As the impact of the COVID-19 pandemic on the global economy continues to moderate, we experienced an improvement in our business in the third quarter of 2021 as compared to the third quarter of 2020.

"The increase in revenue primarily reflects increased client spending in all our disciplines and across all our geographic areas compared to the prior year period and the strengthening of most foreign currencies, primarily the British Pound and the Euro, against the US dollar."

Outlook

"Global economic conditions may continue to be volatile as long as the COVID-19 pandemic remains a public health threat, which could negatively impact our clients' spending plans.

"We expect global economic performance and the performance of our businesses to vary by geography and discipline until the impact of the COVID-19 pandemic on the global economy subsides."

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