Omnicom continues recovery from pandemic, posting growth across 2021
Omnicom Group has posted its financial results for Q4 2021, as well as its results across the entirety of 2021, of which “exceeded expectations”.
The Group posted organic growth of 9.5% in the fourth quarter, as well as total revenue of US$3.86 billion (A$5.38 billion) in the same quarter. Across the twelve months ending 31 December, revenue totalled US$14.3 billion (A$19.9 billion).
Chairman and CEO of Omincom Group Inc. globally, John Wren said: “Global organic revenue growth of 9.5% exceeded our expectations in the fourth quarter, operating profit margins remained very strong, and we posted solid quarterly earnings per share.”
“Once again, thanks to the efforts of our people across Omnicom, we were pleased to see strong results across all geographies and services, led by our focus on digital, precision marketing and consulting.”
“Our teams are working together in powerful new ways – with leading technology and data solutions – to deliver the best client outcomes in a rapidly evolving market. We are optimistic in our 2022 outlook and expect to continue build on our long-term record of improving profitability and sustained value creation.”
The group said that fourth quarter results reflected a continued improvement as it recovers from the negative effects of the COVID-19 pandemic, with revenue up 2.6% compared to the same quarter in 2020. This is thanks to increased revenue from organic growth, a decrease in acquisition revenue, net of disposition revenue (6.6%), and a decrease in revenue from the negative impact of foreign currency translation of 0.3%.
Wren
Across Q4, compared to 2020, each major discipline showed organic growth. This included: 7.4% for Advertising, 19.6% for Precision Marketing, 12.4% for Commerce & Brand Consulting, 56.7% for Experiential, 5.2% for Execution & Support, 4.4% for Public Relations and 4.5% for Healthcare.
The Asia-Pacific region grew by 7.8%, with the Middle East and Africa the region with the greatest organic growth compared to 2020, being 48.1%.
The other markets performed as follows: 7.8% for the United States, 1.8% for Other North America, 10.1% for the United Kingdom, 12.7% for the Euro Markets & Other Europe, and 7.3% for Latin America.
For the full year, total revenue was up 8.5% from US$13.2 (A$18.4 billion) in 2020. This included organic growth of 10.2%. Again, organic growth was seen across each discipline, listed as follows: 10.7% for Advertising, 19.0% for Precision Marketing, 9.9% for Commerce & Brand Consulting, 27.0% for Experiential, 4.2% for Execution & Support, 6.3% for Public Relations and 4.0% for Healthcare.
The Asia-Pacific region grew by 13.6% across 2021, with the Middle East and Africa again the region with the greatest organic growth compared to 2020, of 26.4%.
The remaining regions are listed as follows: 8.1% for the United States, 11.7% for Other North America, 8.8% for the United Kingdom, 13.6% for the Euro Markets & Other Europe, and 9.4% for Latin America.
Omnicom Group currently trades at US$90.2 (A$125.6) as of 20 October 2021, and has a market capitalisation of US$19.2 billion (A$26.7 billion).
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Calum Jaspan was news editor at Mumbrella, based in Melbourne. He was also the producer and host of the Mumbrellacast. He left Mumbrella in May 2023.
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