Omnicom posted “solid” organic growth of 5.2% in the March quarter and was on track to hit full year targets despite economic uncertainty.
Reported revenue in the three months increased $US33 million, or 1%, to $3.443 billion, slightly better than Wall Street analysts expected.
Omnicom is the first of the big global advertising agencies to report first quarter results.
CEO John Wren described the results as a "solid start" to the year.
"Despite many macroeconomic, technological and social factors facing our clients, Omnicom is guiding the world's top companies and their brands to continued growth with highly-specialised marketing and communications services driven by leading analytics, creativity, data, and digital media solutions,” he says.
"We took operational steps this quarter and have further plans in place to mitigate the impact of potential macro headwinds on our profitability, while continuing to deliver attractive returns.
“As we look ahead in 2023, we expect organic growth, portfolio enhancement, financial discipline, and thoughtful capital allocation to continue to benefit our clients and our shareholders."
Omnicom says it is on track to achieve an expected 3%-5% organic revenue growth with broad-based growth across disciplines and geographies.
The company has been reducing square footage in its office real estate portfolio.
And has an AI partnership with Microsoft for integration of latest OpenAI GPT models within Omni, Omnicom’s data and insights platform.
Organic growth by discipline: 5.1% for Advertising & Media; 7.0% for Precision Marketing; 5.8% for Public Relations; 4.8% for Healthcare; 8.4% for Experiential; 3.6% for Execution & Support; and 3.3% for Commerce & Brand Consulting.
And by region: 5.1% for the US; 5.4% for the Euro Markets & Other Europe; 5.9% for the UK: 2.8% for Asia Pacific; 12.2% for Latin America; 9.5% for the Middle East & Africa; and 6.6% for Other North America.
March quarter 2023 numbers:
And revenue by industry sector for the March quarter 2023:
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