Omnicom Q2 results indicate double-digit revenue growth despite slowed Asia Pacific growth
Omnicom Inc. reported its Q2 2022 results today for the quarter ending June 30, 2022. The results found a double-digit global revenue growth of 11.3%, with reduced growth in Asia Pacific negatively impacted by COVID-19 lockdowns in China.
The advertising company posted revenue of $3.57 billion in the period, beating Street forecasts and experiencing higher revenue than last quarter. The company did however see a notable decline in growth in the Asia Pacific region.
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Compared to Q1 2022, the company experienced increased global revenues of $US3.56 billion, compared to $US3.41 billion last reporting period.
“We performed well on every metric this quarter, led again by double-digit organic revenue growth,” said CEO and Chairman of Omnicom Group Inc., John Wren.
“The changes we have made in our portfolio are delivering better results for our clients as we are uniquely qualified to help them digitally transform their business, navigate complexity, and expand in high-growth areas like retail media and e-commerce. As we enter the second half of the year, we are in a strong financial position, and our company is well-prepared to manage through economic headwinds.”
Organic growth in the second quarter of 2022 compared to the second quarter of 2021 increased across all of our fundamental disciplines, including: 8.2% for advertising & media, 15.8% for public relations, 21.0% for precision marketing, 9.2% for healthcare, 9.3% for execution & support, 11.2% for commerce & brand consulting, and 36.6% for experiential.
Salary and people-related costs increased by 4.6%, or $79.1 million, following an expansion of headcount and a rise in travel and related costs.
Organic growth in the second quarter of 2022 compared to the second quarter of 2021 increased across regional markets as follows:
- 4.7% for Asia Pacific
- 10.7% for the United States
- 15.1% for the Euro Markets & Other Europe
- 4.7% for Asia Pacific,
- 12.0% for the United Kingdom
- 12.5% for Other North America
- 14.0% for Latin America
- 28.3% for the Middle East & Africa
Omnicom had an operating profit margin of 15.2%, with operating profits up 4.7% to $541.6 million.
The conflict in Russia continues to pose a threat to revenues and performance in Europe, with acquisition revenue, net of disposition revenue, seeing a decrease of $239.8 million, or 6.7%.
Omnicom Group’s share price currently trades at US$67.41, with a market capitalisation of US$13.87 billion – notably lower than the numbers seen in Q1.
In Q1 2022, Omnicom Group traded at US$80.82 as of 20 April 2022, with a market capitalisation of US$16.73 billion.
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