‘Robust growth’ for Omnicom Group in Q3 financial results
Omnicom Group is the latest global holding group to deliver its Q3 financial results, reporting organic growth of 11.5% overall in the three months ending 30 September.
Revenue for the quarter totalled US$3.44 billion (A$4.6 billion), a rise of 7.1% on 2020 figures, as the negative impacts brought on by COVID-19 continue to improve. Revenue of the year-to-date is at US$10.4 billion (A$13.9 billion).
In Australia, Omnicom subsidiaries include Clemenger Group (CHE Proximity, Clemenger BBDO, Porter Novelli), TBWA Australia, DDB Group and Omnicom Media Group (PHD, OMD, Hearts & Science).
CEO and chairman of Omnicom, John Wren said: “Robust organic revenue growth of 11.5% drove improvement in all of our key financial measures – with a notable jump in CRM Precision Marketing from our digital transformation work.”
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“Our powerful and differentiated offering, which is tailored to our clients’ needs and is comprised of best-in-class talent, creativity, operating systems and technologies such as Omni, enables us to consistently orchestrate better outcomes for clients and win new business. It is a formula that delivered for us in the third quarter, and will drive our ability to meet our clients’ growing demands in an increasingly complex marketing landscape.”
The group said that the components contributing to the change in revenue include the positive impact of foreign currency translation of 1.6%, a decrease in acquisition revenue, net of disposition revenue, of 5.9% and an increase in revenue from organic growth of 11.5%.
Omnicom CEO John Wren
Organic growth by disciplines within Omnicom were 8.6% for advertising, 24.3% for CRM precision marketing, 18.0% for CRM commerce and brand consulting, 49.9% for CRM experiential, 8.3% for CRM execution & support, 10.5% for public relations and 6.6% for healthcare.
The results showed 19.6% organic growth in the APAC region, which was one of the strongest compared to 2020. The group reported growth across all regions, including 7.7% in the United States, 11.4% in the United Kingdom and 14.9% in the Euro markets.
EBITA (earnings before interest, taxes, and amortization) increased US$38.7 million (A$51.8 million), to US$560.3 million (A$749.7 million), a rise of 7.4% on 2020, while the EBITA margin was unchanged compared to the same quarter last year.
Commenting on the outlook, Omnicom stated: “Global economic conditions may continue to be volatile as long as the COVID-19 pandemic remains a public health threat, which could negatively impact our clients’ spending plans. We expect global economic performance and the performance of our businesses to vary by geography and discipline until the impact of the COVID-19 pandemic on the global economy subsides.”
Omnicom Group currently trades at US$76.5 (A$102.4) as of 20 October 2021, and has a market capitalisation of US$16.4 billion (A$21.9 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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