Despite the current ad gloom, US-headquartered marketing services giant Omnicom Group on Tuesday posted a 7.8% year-on-year rise in net income for the third quarter to $92.4 million, at the high end of analysts’ projections.
Omnicom, known for its successful weathering of stormy economic conditions in the past, saw worldwide revenues rise 8% to $1.571 billion, on the back of several new business wins. American revenues increased 7% to $831.1m, while non-US revenues jumped 9% to $739.9m.
The group’s chief executive John Wren warned that revenues would continue to be affected by the ad downturn, but expressed confidence that new business would drive double-digit growth in 2002.
Omnicom – owner of the DDB, BBDO and TBWA networks – reported a 16% rise in net income over the first nine months of 2001 to $339m and a 13% jump in global revenues to $4.919bn – $2.653bn in the US (+15%) and $2.266bn elsewhere (+10%).
WPP Group’s quarterly figures, due for release on Thursday, are not expected to be so positive.
News sources: MediaGuardian.co.uk; Omnicom website