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%.