NEW YORK: Omnicom Group’s PR revenue grew 1.8% organically in the first quarter to $325.3 million. As-reported growth for the PR sector was 2% in the period.
For the holding company as a whole, revenue was up 4.4% organically to $3.6 billion. Net income increased 10.7% to $241.8 million; operating profit improved by 4.5% to $409.9 million. Omnicom’s operating profit margin percentage was 11.4% in the quarter, up from 11.2% in Q1 2016.
The holding company owns and operates FleishmanHillard, Ketchum, Porter Novelli, Marina Maher Communications, and other firms under its Omnicom Public Relations Group. The PR results were measured against a first quarter of 2016 in which revenue was down 0.9%.
"Omnicom PR Group started off the year well, reporting a respectable organic growth rate in Q1. Across the agencies, we’re seeing a strong new business pipeline, with a number of exciting cross-agency opportunities in play that we hope to see materialize in Q2," said Omnicom PR Group CEO Karen van Bergen, via email. "We remain squarely focused on talent, collaboration, and innovation as our strategic pillars leading to growth."
Omnicom’s other business segments outpaced PR in Q1. Advertising revenue increased 6.4% organically in the period to $1.9 billion, while CRM increased 2.1% to $1.1 billion. Specialty communications revenue improved by 3.3% to $270.3 million.
Growth in North America, Omnicom’s largest region, was slower than others in Q1 at 1.1% to $2.1 billion. Revenue growth in the U.K. was 8.1% in the first quarter to $309.2 million, and it improved by 8.2% in other European markets to $578.4 million. Revenue growth in Asia-Pacific was 9.1% organically in the period to $375 million. Latin American revenue increased 5.4% organically to $106.6 million, and Africa and the Middle East was up by 37.9% to $78.9 million.
Organic revenue represents change without taking into account the impact of acquisitions or disposals.
This story was updated on April 18 with comments from van Bergen.