Omnicom global revenue up as John Wren highlights Australian performance
Omnicom has reported an increase in global revenue in the first quarter of 2021, with a 0.6% increase on the prior corresponding reporting period to $US3,426.9 million, while in APAC there was positive organic growth.
Operating profit increased 10.8% to to $465.4 million compared to $US420.2 million during Q1 of 2020. Meanwhile, Omnicom’s operating margin for Q1 2021 increased to 13.6%, compared to a 12.3% bump for the prior corresponding reporting period.
Omnicom Q1 2021 Results
EBITA also increased, up 10.0% to $485.3 million for Q1 from $441.0 million in Q1 of 2020. The EBITA margin increased to 14.2% compared to a 12.9% in the first quarter of 2020.
Omnicom also reported that organic growth was down 1.8%, but that was a significant improvement on the 9.6% decline quarter on quarter reported in Q4 of 2020.
In terms of organic growth across Omnicom’s fundamental disciplines, Advertising increased 1.2% and CRM Precision Marketing was up 7.2%.
Meanwhile, CRM Commerce and Brand Consulting decreased 4.2%, CRM Experiential was down 33.2%, as CRM Execution & Support fell 13.3% and Public Relations decreased 3.5%.
Omnicom CEO John Wren told investors that the quarterly performance positions the group for a “very strong recovery” for 2021.
“Going forward, we expect to see positive organic growth. It has taken some time to turn the corner, and we are now on a clear path to return to growth.”
Omnicom CEO John Wren
Despite reporting decreases in organic growth across the US, UK, Europe, Latin America, and the Middle East/Africa, Omnicom’s operations in APAC brought in positive organic growth.
“Multiple countries at positive growth in the quarter and the majority continue to improve sequentially,” Wren said, before highlighting Australia’s performance.
“Asia turned positive in Q1 with organic growth of 2.5%. Australia continued to perform well and we saw a significant return to growth in our events business in China which combined with improvements in the other operations in the market resulted in double-digit growth.
“We are at the beginning of the end of the pandemic,” Wren added. “If 2020 taught us anything, it’s to expect the unexpected, and we will continue to move forward with vigilance.”
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