Omnicom reported organic growth of 11.9% in the March quarter with a “strong” performance across all disciplines and geographies continuing the lift from the negative effects of the pandemic .
Revenue was $US3.41 billion, down 0.5% compared to the same three months lost year but ahead of analyst expectations by $US120 million.
The global advertising group increased its full year forecast for organic revenue growth to 6% to 6.5%, from its previous guidance of 5% to 6%.
The result follows Publicis Groupe which last week posted organic growth of 10.5% in the March quarter. The company updated full year guidance with organic growth now at the upper end of the +4 to +5% range.
Omnicom's organic growth is trending higher and betaign analyst expectations. For the full year to December, organic growth was 10.2%. In the December quarter, it was 9.5%.
Omnicom’s CEO John Wren was upbeat about his results but says the company will continue to plan cautiously for the remainder of the year due to macro factors.
"Our strong momentum continued in the first quarter with 11.9% organic revenue growth, reflecting our persistent focus on achieving better outcomes for our clients across all our business disciplines,” he says.
"We continued to invest in areas important to our clients' growth, continued to make acquisitions in strategic areas of growth, and repurchased a significant amount of our shares.
“Despite uniquely challenging global events, we remain confident that our high-quality and diverse portfolio positions us strongly for future growth, both in 2022 and beyond."
Organic growth in the first quarter of 2022 increased across all disciplines: 9.1% for Advertising & Media, 20.3% for Precision Marketing, 13.8% for Commerce & Brand Consulting, 68.0% for Experiential, 6.3% for Execution & Support, 14.0% for Public Relations and 7.7% for Healthcare.
In regional markets: 10.6% for the US, 9.6% for Other North America, 10.3% for the UK, 13.8% for the Euro Markets & Other Europe, 11.1% for Asia Pacific, 9.3% for Latin America and 63.8% for the Middle East & Africa.
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