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Omnicom Revenue and Net Income Slip

Currency Fluctuations Continue to Weigh Down Overall Revenue

By Published on .

Omnicom Group's net income in the second quarter this year declined 3.5%, to $313.9 million, from the second quarter in 2014.

Total revenue at the agency holding company giant, which owns agency networks such as BBDO and DDB Worldwide, slipped 1.7% to $3.8 billion, Omnicom said Tuesday morning. Organic revenue, excluding one-time factors such as acquisitions and external forces such as currency fluctuations, increased 5.3%. Impacting total revenue was the negative impact of foreign exchange rates of 7.1%.

Basic earnings per share of $ 1.27 beat analyst expectations of $1.22, according to Yahoo finance.

By comparison, Omnicom's net income for the first quarter of 2015 increased 1.8% from a year earlier to $209.1 million. But overall global revenue last quarter had slipped 0.9% to $3.47 billion due to the impact of foreign exchange rates.

Across regional markets, organic revenue in the second quarter of 2015 increased 5.9% in North America, 5.4% in the U.K., 3.9% in Europe, 7.6% in Asia Pacific and 11.9% in Africa and the Middle East. Organic revenue decreased 9.6% in Latin America, the company said.

Among four key disciplines, organic revenue grew most in specialty communications, with an increase of 8%, followed by advertising (up 6.4%), CRM (up 4.3%) and public relations (up 0.3%).

Second-quarter earnings also reflect a higher tax rate compared to the same period last year, when the company benefited from a tax benefit of $11 million, according to Omnicom. That benefit had been related to expenses incurred in connection with the proposed merger with Publicis Groupe, which was terminated on May 8, 2014.

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