NEW YORK: Omnicom Group’s PR agencies reported a disappointing Q2, with revenue down 1.3% on an organic basis to $349.3 million.
Omnicom executives said on the company’s earnings call that PR performance was mixed globally.
"Performance in [PR] continues to be mixed by geographic region – the U.K. and Asia were positive, while our U.S., Continental Europe and Latin America agencies were negative," Omnicom CFO Phil Angelastro said on the earnings call.
An Omnicom spokesperson declined to make Omnicom Public Relations Group CEO Karen van Bergen available for comment, referring requests for comment to the company’s earnings call.
For the first half of the year, Omnicom’s PR revenue slid 0.9% to $683.4 million. On an as-reported basis, PR revenue dropped by 3.6% in the first six months of the year.
PR accounted for 9.4% of the holding company’s Q2 revenue and 9.5% of first-half revenue.
Three of the holding company’s business segments reported growth in Q2, with advertising increasing 4.4% organically to $2.1 billion, CRM consumer experience up 1.9% to $659.5 million and healthcare seeing 8.4% growth to $291 million. CRM execution and support also fell in Q2 by 2.6% to $326.1 million.
Omnicom’s overall business reported an organic revenue increase of 2.8% in Q2 to $3.7 billion, but was down on an as-reported basis by 3.6%. For the first half of the year, revenue was up 2.7% organically to $7.2 billion.
"By discipline for the quarter, we again saw mixed performance: advertising and healthcare led the way with solid organic growth. Our CRM consumer experience businesses also performed well this quarter, while PR and CRM execution and support continued to lag," Angelastro said on the earnings call.
Broken down by region, the U.S. grew by 3.2% to more than $2 billion in Q2. Also showing organic revenue growth in the quarter were other North American regions (11.8% to $113.2 million); the U.K. (5.7% to $361 million); EuroZone markets and other parts of Europe (1.5% to $674.9 million); and Asia-Pacific (1.9% to $407.6 million). Latin America and the Middle East and Africa both saw revenue decreases of 2.4% to $96.9 million and 8.3% to $61 million, respectively.