Organic revenue increased across all of Omnicom’s fundamental disciplines: 9.1% for Advertising & Media, 20.3% for Precision Marketing, 13.8% for Commerce & Brand Consulting, 68.0% for Experiential, 6.3% for Execution & Support, 14.0% for Public Relations and 7.7% for Healthcare.
Organic revenue increased across all regions versus a year earlier. Organic growth came in at 10.6% for the U.S, 9.6% for other North America, 10.3% for the U.K, 13.8% for the rest of Europe, 11.1% for Asia Pacific, 9.3% for Latin America and 63.8% for the Middle East & Africa.
Omnicom now expects full-year organic revenue growth of 6% to 6.5%, with margin strength continuing, John Wren, chairman and CEO, said on a conference call. That's up from a February forecast calling for 5% to 6% organic revenue growth.
Omnicom touches on Russia
The holding company withdrew its operations from Russia last month, affecting 2,000 employees. Before diving into the numbers on the company's conference call, Wren discussed the Russia-Ukraine war.
“Our focus remains the safety and well-being of our Ukrainian colleagues and their families. We've been in constant contact with our agency leaders in the Ukraine and continue to deliver needed humanitarian assistance and support,” he said during the call. “I was privileged to meet our senior regional leaders in Warsaw a few weeks ago. I continue to admire the tremendous bravery of our Ukrainian colleagues as they defend their country and protect their families. Since the onset of the war, our teams in the region from Poland, Czech Republic, Romania, Slovakia, Bulgaria and Hungary have been providing extraordinary support to their co-workers from Ukraine.”
Omnicom has sold or committed to disposing of all of its businesses in Russia, which along with its departure from Ukraine led to pre-tax charges of $113.4 million in the quarter. First-quarter operating profit declined 24.2% to $353 million and operating profit margin fell to 10.4% from 13.6% a year earlier, mainly due to the war-related charges.
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Results from the industry
Omnicom is the second of the major agency companies to announce its first-quarter results.
Publicis Groupe last week reported a 10.5% increase in first-quarter organic net revenue, ahead of analyst expectations of approximately 6%, to 2800 million euros.
Interpublic Group of Cos. will announce its results on April 28. Dentsu Group will release its results on May 16. WPP and Stagwell have not yet shared when they plan to report their latest quarterly results.
Omnicom shares rose 3.7% to $83.80 in after-hours trading following the release of the results.