Omnicom PR revenue down in Q2

The holding company reported a 0.3% organic revenue drop for its PR firms in the second quarter.

Omnicom PR revenue down in Q2

NEW YORK: Omnicom Group’s public relations firms experienced a revenue drop of 0.3% in the second quarter to $342.6 million.

PR was the only Omnicom segment that saw an organic revenue decrease in the period. Advertising was up by 4.2% organically to $2 billion; CRM increased 3.7% to $1.1 billion; and specialty communications was up 2.2% to $297.8 million. The holding company’s overall organic growth was up 3.5% in the period to $3.8 billion.

In Q2 2016, Omnicom’s PR firms reported a flat quarter, up 0.1% to nearly $350 million.

The holding company owns and operates firms including FleishmanHillard, Ketchum, Porter Novelli, and Marina Maher Communications within the Omnicom Public Relations Group.

"While Omnicom PR Group saw less growth than expected in Q2, we remain convinced that our data-driven approach and consistently strong growing collaboration will deliver results going forward," said Karen van Bergen, Omnicom PR Group CEO. "Our agencies in Europe and Asia performed strong, with the U.K. leading the way. The lack of growth was due to projects planned but not executed at the time expected."

North America lagged all other regions in terms of revenue growth in the second quarter, up 0.2% to $2.2 billion. Higher organic growth rates were reported by the U.K. (9.3% to $350.4 million); other European markets (7.8% to $662.1 million); Asia-Pacific (7.1% to $405.3 million); and Africa and the Middle East (20.4% to $75.5 million).

The holding company’s net income was up 0.8% in the quarter to $328.6 million, while operating profit increased 0.7% to $565.5 million.

For the year to date, the PR group reported a 0.7% increase in organic revenue to $667.9 million. Advertising revenue was up 5.2% organically to $3.9 billion, CRM revenue increased 2.9% to $2.2 billion, and specialty communications increased 2.7% to $568 million. The holding company as a whole reported a 3.9% organic revenue increase to $7.4 billion.

North America also lagged behind other regions in terms of first-half revenue growth at 0.6% to $4.3 billion. Revenue from the U.K. grew by 8.7% to $659.6 million; other European markets increased revenue by 8% organically to $1.2 billion; and Asia-Pacific grew 8.1% organically to $780.3 million. Latin American organic revenue was up 5.2% to $227.8 million, while Africa and the Middle East saw 28.7% growth to $154.4 million.

Operating profit for the first six months of the year increased by 2.3% $975.5 million, while net income was up 4.8% to $570.4 million.

This story was updated on July 20 with quotes from van Bergen and additional information. 

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