NEW YORK: Omnicom Group's public relations agencies reported flat revenue growth in the second quarter, up just 0.1% to nearly $350 million in the period.
The quarter was compared with Q2 2015, when Omnicom’s communications firms saw organic revenue growth of 0.3%. The holding company’s PR firms include FleishmanHillard, Ketchum, Porter Novelli, and Marina Maher Communications.
As a whole, the holding company reported a 3.9% increase in net income to $326.1 million, while operating income was up 4.3% in the quarter to $561.8 million. Second-quarter operating margins increased to 14.5% from 14.2% in Q2 2015. Overall revenue grew 3.4% to $3.9 billion in the second quarter.
Omnicom’s advertising group registered growth of 7.7% in the quarter to $2.1 billion, and specialty communications was up 4.4% organically to $290.6 million. Its CRM segment was down 2.7% organically in the quarter to $1.2 billion.
Broken down regionally, the holding company reported 3.2% organic growth in North America, where it does 60% of its business, to $2.3 billion. U.K. revenue was up 3.3% organically to $363.7 million, while other European markets increased 4.3% to $630.1 million. Revenue in Asia-Pacific markets grew 4.5% to $400.2 million, while it was up 1.7% in Latin America. Revenue from Africa and the Middle East was down 1.2% to $62.3 million.