Omnicom Group posts 5.2% organic revenue growth in Q1; Impact mitigation plans ahead
Omnicom Group has managed to maintain its organic revenue growth streak, despite a slowdown in the rate compared to the previous quarter, in its latest earnings for Q1 2023.
The holding company of agencies including OMD, PHD, DDB and more had revenue of US$3.44 billion (A$5.11 billion) in this quarter and reported organic growth of 5.2%. Asia Pacific regions witnessed a 2.8% revenue growth.
The reported operating income was US$346.5 million (A$514.76 million) in Q1 2023, with an operating income margin of 10.1%, compared to US$353 million (A$524.41 million) and 10.4% in the previous corresponding period.
EBITA (earnings before interest, taxes, and amortisation) decreased to US$365.8 million (A$543.44 million) in the first quarter of 2023 compared to the first quarter of 2022, and the related EBITA margin was 10.6% compared to 10.9% then.
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Chairman and CEO of Omnicom Group, John Wren, said despite challenging macro factors in the quarter, the results signalled a strong start to the year.
“We took operational steps this quarter and have further plans in place to mitigate the impact of potential macro headwinds on our profitability, while continuing to deliver attractive returns,” he said.
“As we look ahead in 2023, we expect organic growth, portfolio enhancement, financial discipline, and thoughtful capital allocation to continue to benefit our clients and our shareholders.”
Omnicom’s share price closed at US$96.14 (A$142.83) the previous day. It has a market cap of US$19.36 billion (A$28.76 billion) as of 19 April.
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Darcy Song was a reporter at Mumbrella, covering media owners, adtech and social platforms. She left in October 2023.
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