Global advertising and communications group Omnicom has posted strong financial results, with a particularly good first quarter coming from the US. Across Europe the performance was more mixed.
In Europe overall organic growth was 12.6%, with the lowest regional growth coming from the UK at 5%. Germany saw 10%, France 10% and the Netherlands 15%. Overall organic growth came in at 13.8%.
In the US new business wins helped drive growth to 14.8%. In the first quarter new billings totalled $1.34 billion, up 3% on Q1 2000.
Worldwide revenue increased 16% to $1.6 billion from $1.38 billion in the first quarter of 2000. Net income for the quarter increased by 20% to $95.3 million from $79.7 million.
Omnicom’s branded networks and speciality firms provide advertising, strategic media planning and buying, marketing and public relations services to more than 5,000 clients in over 100 countries. It owns the PhD media network, BBDO Worldwide and TBWA Worldwide, amongst others.
However, the advertising outlook is currently taking a downturn. Analysts at ABN Amro say that Omnicom’s figures are similar to many other agencies – strong operating results, with a deteriorating outlook. The broker remains neutral on the advertising agenecy sector as a whole.
