Omnicom Q2 PR revenue flat

NEW YORK: Omnicom Group's PR revenue grew 0.9% organically in the second quarter of 2012 to $322.2 million, compared with the previous year.

NEW YORK: Omnicom Group's PR revenue grew 0.9% organically in the second quarter of 2012 to $322.2 million, compared with the previous year. 

The holding company owns and operates Fleishman-Hillard, Ketchum, Porter Novelli, Cone, Marina Maher Communications, and Mercury Public Affairs under its Diversified Agency Services unit. It acquired London-based communications agency Portland in April. 

In Q2, PR growth was outpaced by Omnicom's advertising and CRM agencies, which reported 7.1% and 5.8% organic growth respectively. PR made up 9% of Omnicom's business in Q2, with advertising accounting for 47.5%, CRM making up 36.2%, and specialty marketing earning 7.3% of the total.

For the first half of 2012, PR revenue was up 2.6% organically to $629 million, compared with the prior year. Meanwhile, the holding company's advertising segment saw 7.8% organic growth and CRM reported a 4.5% organic increase in revenue.

Dave Senay, president and CEO of Fleishman, said via email that his agency "far exceeded the growth reported in the sector by Omnicom."

Rob Flaherty, Ketchum's recently minted CEO, said: “We performed very well. We had a very strong second quarter. It was better than our first quarter."

He added that being hired as the Cleveland Clinic's first PR AOR in the organization's 90-year history was a highlight for Ketchum in the second quarter. The agency also saw growth in sports and entertainment, change management, word-of-mouth, external communications, digital, and technology in the period, Flaherty said.

Acting Porter CEO Michael Ramah said the agency's “top line grew strongly Q1 to Q2, and our profit performance was up significantly for the first half of the year.”

The holding company saw combined US organic revenue growth of 5.4%, year-over-year, to $1.86 billion in the second quarter. It reported a 1.5% organic revenue decrease in Euro currency markets, 3.2% organic growth in the UK, and 11% organic growth in the rest of the world. 

Overall, Omnicom reported a 2.1% increase in worldwide revenue to $3.56 billion in the second quarter. Net income increased 2.8% in the period to $282.7 million, year-over-year. Operating income was up 3.7% to $506.4 million.

Broken down by industry, Omnicom reported 20% Q2 growth in the auto sector, year-over-year, while retail saw 12.7% growth, consumer products were up 7%, and technology increased 4.5% compared with the prior year.

Combined US revenue grew 4.9% organically in the first half of 2012 to $3.58 billion, compared with the first six months of 2011. The holding company's global revenue increased 3.5% in the first half of the year to $6.87 billion. Operating income was up 7.2% in FH 2012 to $868.9 million, while net income grew 2.2% to $487.3 million in the first half.

Organic growth represents change in revenue without measuring the impact of acquisitions or disposals.

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