Media a major revenue driver for Omnicom in Q1

Advertising, as well as healthcare, drove growth from the holding co across global regions.
helloquence-51716-unsplash (1)

Omnicom missed its own revenue goals in its Q1 results, but still managed to beat analyst expectations and showed strong performance across regions, thanks in part to its media.

Revenue at Omnicom decreased by 4.4% compared to Q1 of last year, which the company attributes largely to the effects of exchange rates and costs associated with disposition activity over the last year; organic revenue, which excludes those costs, grew by 2.5%.

The company attributed its organic growth to new business wins in Q3 2018, as well as strong performances from its media and healthcare disciplines. Organic revenue grew in advertising (which includes media) by 5.1% and in healthcare by 6.8%, offsetting slight decreases in CRM consumer experience (0.6%), CRM execution and support (3.3%) and PR (0.5%).

Media agencies under Omnicom include OMD, PHD, Touché!, Hearts & Science, Alternator and others.

Organic revenue was up in most of the regions in which Omnicom operates. It grew by 2.0% in the United States, 6.1% in the rest of North America, 1.3% in the United Kingdom, 4.0% in the rest of Europe, 2.1% in Asia Pacific and 12.8% for the Middle East and Africa. Organic revenue decreased by 3% in Latin America.

During an investors call, Omnicom CEO John Wren responded to numerous questions about acquisitions ? such as consultancy Accenture’s acquisition of indie agency powerhouse Droga5 or Publicis’ acquisition of data marketing agency Epsilon ? by saying it had no plans to alter its own mergers-and-acquisitions strategy. Following the release of its full-year results, the company said it would be acquiring the same, if not more, agencies than it had in 2018. Wren’s focus during yesterday’s call specifically pointed to focusing on “large and consultative type[s] of IT practices,” while also saying that forming 12 different practice areas (the most recent of which was a retail practice) was helping it respond to client need and the change happening at competing holding companies.