Omnicom Group posted third quarter 2019 results, beating analyst expectations on earnings per share but slightly down on revenue.
Earnings per share of $US1.32 was ahead of consensus by 2 cents.
Revenue fro the quarter came in at $US3.6 billion, down 2.4% mainly due to a stronger US dollar.
Organic growth -- a widely used measure in advertising which excludes foreign exchange fluctuations -- was 2.2%.
CEO John Wren says Omnicom is in a very strong competitive position and well positioned to deliver on internal targets for the full year.
"We’ve remained focused on our key strategic objectives that have served us well," he told an analyst briefing.
"These strategies are centered around hiring and retaining the best talent, driving organic growth by evolving our service offerings, improving operational efficiencies, and investing in areas of growth.
"As part of this process, we are continually making internal investments in our agencies across all of our practice areas, as well as pursuing acquisitions particularly in the areas of data analytics, digital transformation, precision marketing, and healthcare."
Wren says good progress has been made on enhancing capabilities in digital transformation, machine learning and audience-centric services.
In the third quarter, the company expanded business with large clients, including AstraZeneca, Novartis, and Wells Fargo.
Unilever awarded Omnicom two of its product lines: Rexona to BBDO, and Sunsilk to adam&eveDDB.
New client wins include Kroger, the largest grocer in the US and the second-largest retailer behind Wal-Mart, which named DDB New York as its first creative agency of record.
OMD also won the global Boehringer Ingelheim animal health account, and Aliance [ph] named a number of Omnicom agencies for an integrated offering which will include creative media branding and PR.
Omnicom's third quarter result was ahead of the French advertising giant Publicis Groupe which last week report a 2.5% fall in organic growth for the quarter.
Omnicom's organic growth per discipline: Advertising increased 3.4%, CRM Consumer Experience up 1.8%, CRM Execution & Support fell 1.5%, Public Relations fell 3.8% and Healthcare jumped 9.5%.
"Our advertising and media agencies continued to rapidly evolve their offerings in a manner that has allowed them to remain highly relevant for their clients," says Wren.
"Healthcare had another very strong quarter with growth of 9.5%. Omnicom health group has some of the top agencies in the world serving the healthcare and pharmaceutical industries and the group is very well positioned for continued growth."
Regional market organic growth: 2.7% in the US, 2.7% for Other North America, 3% in the United Kingdom, 1.6% for the Euro Markets and Other Europe, 0.4% for Asia Pacific and 6.6% for Latin America while the Middle East and Africa fell 4.5%. Australia and china were negative in the quarter.
The third quarter 2019 numbers:
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