Omnicom, the world’s third largest advertising group, has challenged the gloomy picture being painted by many industry observers and announced a 9% rise in profits for the fourth quarter of 2002.
The company said that twelve month earnings were up by 9.8% to $643 million, thanks in part to a strong performance in the US towards the end of the year. Omnicom owns a number of prominent agencies including DDB, BBDO and TBWA.
Fourth quarter profits totalled $201.5 million with revenues in the US up by 8% year on year to $1.2 billion while overseas business contributed $965 million, an increase of 6%.
Fears over the impact of a possible war in Iraq allied to the weak state of some European economies have forced many organisations to tone down expectations for 2003. WPP which saw profits halve in 2002 (see WPP Profits Fall 50% In The Face Of Recession) is predicting a ‘bath-shaped’ recovery rather than a massive upswing in fortunes.
Having outperformed the likes of Havas and WPP, the board at Omnicom is more optimistic with chief executive John Wren saying they were ‘bullish’ about the future despite current geopolitical concerns.
