Omnicom Posts Healthy Profits

21 February 2001

Advertising giant Omnicom, holding company for the BBDO Worldwide, DDB Worldwide and TBWA Worldwide networks, has posted a 19% jump in Q4 profits, beating analysts’ expectations.

The group saw a year-on-year jump in net income to $142.2 million from $119.9m, while revenue rose from $1.5 billion to $1.8bn. Organic revenue, which excludes acquisitions and currency changes, grew 16.9%, a surprisingly high figure given the slowdown in adspend over Q4 2000. This high organic growth rate is attributable to $4.9bn in new business gained over the year, including accounts for the US Air Force and DaimlerChrysler.

Omnicom’s North American interests performed particularly well, with revenue up 37% to $959.7m, while international operations rose 5% to $842.7m.

The newly posted results bring Omnicom full-year profits to $498.8m, up by over 37% on 1999. Revenues at $6.15bn are a 20% uplift on the previous twelve months.

News source: Wall Street Journal