Solid numbers for Omnicom, but growth in Asia-Pacific slowing

James McGrath
By James McGrath | 11 February 2015
 
Image from Markus Lutkemeyer Available under :Creative Commons license

The failed merger with Publicis hasn't dented Omnicom's performance, which posted a 9.7% increase in fourth quarter profit year on year, with the worldwide group booking $US329.5 million ($A424.35 million) on the back of revenue growth of 3.4%.

Releasing its quarterly figures to the New York Stock Exchange this morning, the worldwide media group said it managed to book revenue of $4.15 billion in the fourth quarter, with more than half of that figure made up from its US business, which brought in $2.24 billion.

Meanwhile on the full year front, it managed to grow its revenue by 5% to $15.3 billion, with its full year profit coming in at $1.1 billion, up roughly 11.4%.

Omnicom is the holding group for the Omnicom Media Group, TBWA Holdings, Clemenger, and BBDO in Australia.

While a lot of the growth was down to the strength of its US business, and while the Asia-Pacific segment still turned a profit, the latest numbers show the unit's organic growth slowed across 2014.

Asia Pacific's organic growth in Q1 was 5.7%, then 5.1%, then 4.4%, and finally 3.2%. That means across 2014, Asia Pacific's growth slowed by about 44% throughout the year.

Meanwhile, the aborted merger cost Omnicom $50.2 million across 2013 and 2014 in professional fees.

Elsewhere, it disclosed that it made 49.6% of its money in 2014 from advertising, 34.8% from customer relation management, 9.1% from PR, and 7% from speciality offerings.

Advertising was the fastest-growing segment for Omnicom, with organic growth of 9.1% recorded.

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