Omnicom Lifts Q2 Profits Ten Percent

27 July 2005

New York-headquartered Omnicom Group, the world's largest marketing services holding company by revenues, again demonstrated its command of the sector by posting a 10% rise in net income for this year's second quarter.

Helmed by master-navigator John Wren, Omnicom, revealed that its traditional media-driven ad business grew by 9%, marginally bettered by specialised marketing activity, including digital and direct marketing, which rose 10%.

Net income grew year-on-year to $225.8 million (€188m; £130m) from $206.1m in Q2 2004, driven by an increase of 9% in worldwide revenues from $2.4 billion to $2.6bn.

Diluted earnings per share for the period jumped 13% from $1.81 to $2.05 - bettering by a wide margin analysts' consensus EPS forecast of $1.23.

For the six months to June 30, total global revenues increased 8% to $5bn from $4.6bn in the same period last year, while US sales rose 9% from $2.5bn to $2.7bn. International revenues leapt 8% from $2.1bn to $2.2bn .

First half net revenues also moved sharply northward, bettering H1 last year by 10% - from $341.7m to $376.3m.

Omnicom's mainstay agency networks are BBDO Worldwide, DDB Worldwide and TBWA\Worldwide

Data sourced from BrandRepublic (UK); additional content by WARC staff