Omnicom PR revenue dips 0.5% in Q1

However, Omnicom CEO John Wren said he's seeing "positive signs in certain areas of our PR operations."

NEW YORK: Omnicom Group’s PR revenue dropped 0.5% organically in Q1 to $334.2 million.

The results were measured against Q1 2018, in which revenue grew 0.7%.

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

Omnicom PR Group CEO Karen van Bergen deferred comment to holding company chief executive John Wren.

"We are seeing some positive signs in certain areas of our PR operations and believe the growth strategies being implemented by our management teams will result in better performance," Wren said on the earnings call.

Fleishman CEO John Saunders declined to comment. In February, Cisco consolidated its corporate PR, technology PR, and corporate social media work with FleishmanHillard.

Top executives from firms including Ketchum and Porter were not immediately available for comment.

For the holding company as a whole, revenue was up 2.5% organically in the period to $3.5 billion. Net income fell 0.3% to $263.2 million in the period, while operating profit improved by 1.7% to $428.9 million. Omnicom’s operating profit margin percentage was 12.4% in the quarter versus 11.6% in Q1 2018.

Of Omnicom’s other business segments, its healthcare work saw the highest growth, up 6.8% organically to $258.1 million in the period, while advertising revenue increased 5.1% to $1.9 billion. CRM execution and support decreased 3.3% to $349.5 million and CRM consumer experience fell 0.6% to $605.8 million.

U.S. revenue was up 2% organically in Q1 to $1.8 billion, and revenue increased by 6.1% in other parts of North America to $105.1 million. The Middle East and Africa saw an organic revenue increase of 2.5% in Q1 to $79 million. U.K. revenue growth was 1.3% to $338.7 million, and other European markets were up by 4% to $606.8 million. Revenue growth in Asia-Pacific was 2.1% organically in the period to $366.2 million. Latin America revenue decreased 3% organically to $89 million.

Organic revenue represents change without taking into account the impact of acquisitions or disposals.

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