NEW YORK: Omnicom Group's PR firms reported an organic revenue dip of 3.5% year-over-year in Q1 to $317.5 million.
Those results were in comparison to the largely pre-COVID-19 Q1 2020 in which Omnicom’s PR revenue was up 0.2% organically on the year prior to $331.6 million. The holding company’s PR firms include FleishmanHillard, Ketchum, Porter Novelli and Marina Maher Communications.
Omnicom saw mixed results across its business sectors. Advertising posted a revenue increase of 1.2% to $2 billion and CRM precision marketing was up 7.2% to $269.5 million. However, CRM experiential fell 33.2% to $88.4 million, CRM execution and support dropped by 13.3% to $246.6 million and CRM commerce and brand consulting declined by 4.2% to $214.5 million.
Omnicom's overall global revenue was down 1.8% organically in the period to $3.4 billion, including a 1% organic decrease in the U.S. to $1.9 billion and a 3.2% drop in other markets in North America to $104.4 million. The results beat analysts’ expectations of a decline of more than 6%, according to FactSet.
The company attributed the revenue drops to continued fallout from the COVID-19 pandemic.
“It’s taken some time to turn the corner, and we’re now on a clear path to return to growth,” CEO John Wren said on the company’s earnings call. “At the same time, we know we must continue to monitor the COVID-19 situation and adapt to any unforeseen challenges that may arise. If 2020 taught us anything, it’s to expect the unexpected.”
In other regions, only Asia-Pacific saw an uptick in revenue with an increase of 2.5% to $400 million. The U.K. fell 6.4% to $356.5 million; other European markets dropped by 3.2% to $584.5 million; Latin America decreased by 2.4% to $63.2 million and the Middle East and Africa fell 10.2% to $50.2 million.
Publicis Groupe reported last week its organic revenue increased 2.8% in Q1, ending a streak of declines during the pandemic. The Paris-based holding company does not disclose PR revenue.
Representatives from Fleishman, Porter and Marina Maher did not reply to requests for comment. Ketchum declined to comment.