Omnicom raises annual forecast after fifth consecutive quarter of organic revenue growth

Omnicom Group reported an 11.3% increase in second-quarter organic revenue, with growth in every discipline and region and once again raised its organic revenue forecast for the year. This marked the holding company’s fifth consecutive quarter of organic growth. Organic growth is a key financial measure that factors out acquisitions, divestitures and effects of exchange rates. Subscribe to Ad Age Sign up now for the latest industry news and analysis Click here Despite the organic revenue growth, the advertising conglomerate's revenue fell 0.1% from a year earlier, which it attributed to the negative impact of foreign exchange rates and its withdrawal from Russia. Second-quarter net income increased 0.1% to $348.4 million. Organic revenue increased across all of Omnicom’s fundamental disciplines from a year earlier: 8.2% for Advertising & Media, 21.0% for Precision Marketing, 11.2% for Commerce & Brand Consulting, 36.6% for Experiential, 9.3% for Execution & Support, 15.8% for Public Relations and 9.2% for Healthcare. Organic revenue increased across all regions, except Asia Pacific, which the holding company says is due to the COVID-19 lockdowns in China. Organic growth came in at 10.7% for the U.S, 12.5% for other North America, 12% for the U.K, 15.1% for the rest of Europe, 4.7% for Asia Pacific, 14% for Latin America and 28.3% for the Middle East & Africa. Omnicom now expects full-year organic revenue growth of 6.5% to 7%, with margin strength continuing, John Wren, chairman and CEO, said on a conference call. That's up from an April forecast calling for 6% to 6.5% organic revenue growth. In February, it predicted 5% to 6% organic revenue growth for the year. Publicis Groupe will report its second earnings on July 21. Stagwell will release its results on Aug. 4 and Dentsu Group will follow, releasing its results on Aug 10. Omnicom shares rose 7.6% to $72.50 in after-hours trading following the release of the results.

Omnicom raises annual forecast after fifth consecutive quarter of organic revenue growth

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