Omnicom Group profits up 8% helped by new business
LONDON - Omnicom Group, owner of DDB, BBDO and TBWA\Worldwide, has posted an 8% rise in profits for the second quarter of 2006 boosted by new-business wins.
The group, which is headed by president and CEO John Wren, reported a better-than-expected rise to $244.1m (£312m) from $225.8m in the second quarter of 2005.
Worldwide revenue increased 8% to $2.82bn from $2.62bn a year ago. Organic revenue growth, which is a key industry indicator, was up 7.2% for the quarter.
Omnicom, which is also home to media networks OMD and PHD, said international revenue for the last six months increased 6%to $2.42bn from $2.28bn in 2005.
Omnicom is currently attempting to move into the Chinese market. In June, the company announced a partnership with Chinese state-owned advertising giant Citic Guoan.
The deal, which ended a 14-year joint venture between Beijing Guoan and WPP's Grey Global Group, will cement a merger of DDB China with Beijing Guoan Advertising Corporation.
As part of its expansion in Asia Pacific, Omnicom said it is to acquire, through its Diversified Agency Services group, a majority stake in Indian field and retail marketing services firm Gotocustomer Services India.
Gotocustomer specialises in field marketing, retail marketing and promotional events. Its clients include Microsoft, Pepsi, Philips, Intel and Idea Cellular. The company has eight offices across India, with direct presence in more than 30 cities. Its head office is located in New Delhi.
Among recent acquisitions, Omnicom Group acquired a majority stake in EVB, an advertising agency specialising in interactive marketing based in San Francisco.
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