Omnicom Q1 Revenues Up 12% But Downsizing Takes Toll

30 April 2003

Omnicom, now world number one agency holding company (by 2002 global revenues) consolidated its position in the first quarter of 2003.

Revenues increased 12% from $1.7 billion (€1.53bn; £1.07bn) to $1.9bn, but net income remained flat at $128.6m – due largely to the cost of downsizing Omnicom’s European units.

Chief financial officer Randall Weisenburger admitted he was concerned by declining profit margins, although this would not restrain the group from spending enough to retain its existing clientele and gain new business: “We're more focused on taking share [from competitors] right now, and we expect [profits] to come back to more optimal levels as the market recovers,” he said.

President/ceo John Wren declared himself “cautiously optimistic” that the long overdue ad recovery is set for this year. “This downturn’s been going on for so long, no one wants to risk being bullish ... but there are lots of positive signs,” he divined.

Data sourced from: Financial Times; additional content by WARC staff