NEW YORK: Omnicom Group's PR agencies earned $318.4 million in the first quarter of 2013, an organic revenue increase of 1.9% compared with Q1 2012.
The holding company's PR firms, which include Fleishman-Hillard, Ketchum, and Porter Novelli, accounted for 9.4% of its total revenue in the quarter. Omnicom's advertising agencies garnered 48.6% of the company's revenue, followed by CRM, which earned 34.5% of total revenue in Q1.
Last year, Omnicom's PR revenue grew 4.4% organically in the first quarter, compared with Q1 2011.
Overall, the company saw $3.4 billion in revenue in the first quarter, up 2.9% organically compared with the prior year. In the US, the holding company earned $1.8 billion in Q1, up 4.1% organically year-over-year. The company saw revenue shrink in its Euro currency markets, but it saw 2.3% organic growth in the UK in Q1. The US accounted for more than 52.7% of the company's revenue in the period.
Operating income was up 2.5% to $371.7 million. Net income increased slightly to $205.1 million in Q1.
Fleishman CEO Dave Senay said that “our performance this quarter was a mirror image of the first quarter of last year.”
Despite the relatively flat organic PR growth for Omnicom in Q1, Ketchum CEO Rob Flaherty said his firm “went into the year with a lot of momentum.”
“Anytime you see 1.9% growth, you have to remember that first off it's better than some other portfolios of PR firms. Secondly, that it is a composite of what is going on around the world,” he explained.
Flaherty added that all global firms and companies are working hard to balance growth in key areas alongside declines or flat performances in Southern Europe.
Karen van Bergen, CEO of Porter Novelli, said her agency “performed in line with Omnicom's expectations, which were ahead of last year's.”
Earlier this week, a Publicis Groupe source told PRWeek that its MSLGroup PR network saw organic revenue growth of between 2% and 3% in the first quarter of this year.
Organic growth represents change in revenue without taking into account the impact of acquisitions or disposals.
This story was updated on April 18 with quotes from Ketchum CEO Rob Flaherty, Fleishman-Hillard CEO Dave Senay, and Porter Novelli CEO Karen van Bergen.