Omnicom revenues jump 8% as it trails rival WPP Group

by Staff, Brand Republic 26-Apr-05, 11:50

NEW YORK - Omnicom Group, the world's number one advertising company, reported worldwide revenues for the first quarter were up 8% to $2.4bn (£1.2bn) slightly behind rival WPP Group, which last week reported a 16% increase.

Omnicom, which owns the DDB, TWBA\ and BBDO Worldwide international advertising networks, said that net income for the first quarter of 2005 increased 11% to $150.5m from $135.6m in the first quarter of 2004.

At home in the US, domestic revenue at Omnicom, which is led by chief executive John Wren, was up 8% to $1.3bn for the first quarter, compared with $1.22bn in 2004. Internationally, revenues also rose by 8% to $1.1bn.

Unlike WPP, Omnicom has made no sizeable acquisitons this past year, which had helped boost the revenue power of the UK-based holding firm.

In 2004, Omnicom recorded revenues of $9.8bn, on which it made a profit of $723.5m, 15% more than its 2003 profit. The group was able to increase organic revenues by 6.4% from the fourth quarter of 2003 to the same quarter in 2004. This compares favourably with other global ad groups.

Last week WPP, owner of advertising agencies JWT and Ogilvy & Mather, said that revenues for its first quarter were up by 16% to £1.11bn, after its acquisition of Grey Global Group on March 7.

In like-for-like terms, revenues rose 6% for the first quarter of the year, boosted by a 40% rise in the US to £443.9m. UK revenue was up by 17% to £184.4m, while continental Europe saw a rise of 26% to £291.5m.

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