Omnicom posted organic growth of 7.2% for the December quarter with the global advertising group saying it is in a “very strong position” in 2023.
Revenue was $3.87 billion. Operating profit increased $20.2 million, or 3.2%, to $642.7 million compared to the fourth quarter of 2021.
The related operating profit margin was 16.6% compared to 16.1%.
Omnicom is the second global holding company to report strong results for the December quarter.
Publicis Groupe closed 2022 with double digit growth for the second year in a row and the advertising business “firing on all cylinders” into the new year. Net revenue was up 19.9% to 12,572 million euros and 2022 organic growth was 10.1%.
At Omnicom, CEO John Wren: "Fourth quarter organic revenue growth of 7.2% was stronger than we expected, led by resilient performance across global geographies and continued strength in our faster growing disciplines.
"We enter 2023 in a very strong position, building on last year's significant new business wins and bringing together creativity, digital technology, and data to create marketing solutions that are responsive to the business transformation needs of our clients.
“At the same time, we are closely tracking the macroeconomic outlook and are fully prepared to respond appropriately.
“We are confident that the flexibility and diversity of our business and the strength of our balance sheet will continue to create value for our shareholders."
Organic growth by discipline in the fourth quarter of 2022 compared to the fourth quarter of 2021: 6% for Advertising & Media, 11.6% for Precision Marketing, 12.7% for Public Relations, 7.2% for Commerce & Brand Consulting, 6.4% for Healthcare, and 17.0% for Experiential. Execution & Support decreased 2.8%.
Organic growth by region: 5.6% for the US, 9.9% for the UK, 5.1% for the Euro Markets & Other Europe, 6.9% for Asia Pacific, 18.2% for Latin America, 7.3% for Other North America, and 32.6% for the Middle East & Africa.
The numbers:
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