NEW YORK: Omnicom Group's PR business contributed revenues of $314.1 million in its third quarter ending September 30, a 1.2% decrease from the same period last year. PR revenues in the third quarter represented 9.5% to the group's overall earnings.
During the earnings call, Omnicom EVP and CFO Randall Weisenburger said PR was “experiencing some general softness.”
So far this year, PR has earned $962.5 million, generating 9.6% of the company's overall earnings, at a growth of 3.1% from last year's earnings.
Omnicom's PR agencies include Brodeur Worldwide, Cone, Fleishman-Hillard, Gavin Anderson & Co, Ketchum, Porter Novelli, and Clark & Weinstock, among others.
The holding company also acquired Paul Wilmot Communications and the marcomms firm Barefoot this quarter.
Omnicom's companywide net income was $213.6 million on revenues of about $3.3 billion for its third quarter, compared to net income of $202.2 million and revenues of $3.1 billion in the same period last year. Year-to-date,
its net income was $729.3 million on revenues of $9.1 billion, increasing 10.2% from last year.
CEO John Wren said during the earnings call that while third quarter results were within the company's expectations, the fourth quarter could prove difficult due to the current credit crisis.
“We expect the fourth quarter to be a challenge, as many normal year end marketing projects may not be authorized if financial markets continue to be volatile,” Wren said.
“We are in the process of trying to assess the impact these events will have on advertising spending for the first half of 2009,” he added. “At this point, our clients generally remain very cautious, the only two sectors which have cut back in fourth quarter spending are our automotive and some of our retail clients.”