Omnicom Beats Earnings Expectations for the First Quarter of 2016

Organic Revenue Across Disciplines Led by Advertising, Which Increased 7.9%

Omnicom on Tuesday reported earnings for its first quarter of 2016 that beat analyst expectations, as well as an organic revenue increase led by North America and its advertising services category.

Net income increased 4.4% during the quarter, to $218.4 million, compared to the same period last year. The company’s worldwide revenue in the first quarter increased 0.9% to $3.5 million from $3.47 million.

The advertising services company beat analyst expectations of earnings per share of $0.87 and growth with an 8.4% increase in earnings of $0.90, according to estimates from Yahoo Finance. Revenue fell short of expectations of a 1.6% increase to $3.52 billion.

Organic revenue, excluding one-time factors such as acquisitions and external forces such as currency fluctuations, increased 3.8% in the first quarter of 2016. By region, organic revenue increased 4.5% in North America, 2.2% in the U.K., 3.0% in various European markets, 5.1% in Asia Pacific and 1.7% in Africa & the Middle East, while organic revenue decreased 7.8% in Latin America.

Advertising led organic revenue growth across the company’s four marketing disciplines, with an increase of 7.9%. CRM decreased 0.7%, PR decreased 0.9% and specialty communications increased 2.2%.

Read the full story on Advertising Age

Rick Palmer
Rick Palmer
Rick is Advertising M&A's Managing Director. A highly experienced digital entrepreneur, Rick has built a number of successful digital businesses and advised FTSE 100/Fortune 500 companies. He has had personal experience of M&A during this time, setting up and selling several businesses in social, gaming, publishing and creative design & build.