Omnicom Revenue and Profit Decreases But Still Beats Expectations

Strongest Sector Was Advertising, Which Saw Revenue Rise 9.9%

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Omnicom's global revenue decreased 1.1% to $3.71 billion in the third quarter of 2015, compared to the same period last year. Net income also decreased 1.8%, to $239.3 million. Still, the company beat analyst expectations of $3.65 billion in revenue, according to Yahoo Finance.

John Wren, president-CEO of Omnicom
John Wren, president-CEO of Omnicom

Globally, organic revenue rose 6.1%. By region, organic revenue was up 6.3% in North America; 9.1% in the U.K.; 4.5% in Europe; 8.6% in Asia Pacific; and 0.4% in Africa/Middle East. However, it decreased 6.9% in Latin America.

The holding company's advertising businesses, which includes BBDO and DDB, saw the most revenue growth in the third quarter. Advertising revenue climbed 9.9%, specialty communications grew 5.4% and CRM increased 2.8%; public relations decreased 1.5%.

Among Omnicom's PR agencies are FleishmanHillard and Ketchum.

The company's third-quarter results are on par with its second-quarter results reported in July. At the time, the company's net income had decreased 3.5%, to $313.9 million, from the second quarter in 2014. Total revenue at the agency holding company giant had slipped 1.7% to $3.8 billion.

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