Omnicom profits jump 9% in 2005 to hit almost $800m

by Staff, Brand Republic 14-Feb-06, 15:40

NEW YORK – Omnicom, which owns the DDB, BBDO and TBWA\Worldwide advertising networks, saw profits rise 9% in 2005 to almost $800m (£462m).

Comparing full-year results for 2005 with 2004, Omnicom's profits were up 9% to $790.7m from $723.5m.

Revenues for the year rose 8% to $10.4bn, up from $9.7bn in 2004. US revenues were double those of international revenues, with the US up 10% to $5.7bn compared with a 5% rise internationally to $4.7bn.

Fourth-quarter profits were revealed a profits rise of 7% in its latest quarterly figures.

In the fourth quarter of 2005, Omnicom reported profits of $252.6m, up from $236.5m in the fourth quarter of 2004. Fourth-quarter revenues of $2.9bn were up 5% from $2.7bn last time.

Omnicom's US operations managed a 9% rise in quarterly revenue to $1.5bn from $1.4bn, outperforming the rest of the world's 1% increase to $1.3bn.

The group, which is headed by chairman and CEO John Wren, hit analysts' expectations of earnings a share of $1.41.

According to Wren, the company won a record $5.5bn in new business last year, and plans to build up its Asian operations, CRM and internet services in 2006.

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