Omnicom rides out Brexit wave with UK growth helping it surpass revenue predictions
Omnicom’s concerns over Brexit harming its international growth appeared to have been allayed after the advertising firm reported UK revenue growth of more than 8% had helped it achieve better-than-expected quarterly revenue.
Omnicom's UK revenue grew by 8.1% in the quarter ending 31 March
The New York-based company revealed that organic revenue grew 8.1% in the UK and 8.2% in Europe, for the first quarter ending 31 March.
With around 44% of Omnicom’s total revenue in 2016 coming from international sales, the results will come as a welcomed boost for the world’s second-largest advertising company, following the outcome of the UK referendum on EU membership.
The impact of foreign exchange rates harmed the company’s revenue though. Omnicom, which also owns other agencies including BBDO Worldwide, TBWA Worldwide and Goodby Silverstein and Partners, confirmed that its revenue was reduced by 1.2% as a result of the turmoil in the exchange markets.
In its home market of North America, Omnicom’s largest region, revenue was slower than in Europe at just 1.1% to $2.1bn. In Asia-Pacific meanwhile, revenue growth was 9.1% organically in the period to $375m.
Overall revenue for the company rose 2.5% to $3.59bn, surpassing the estimates of $3.55bn. It’s net income increased to $241.8m in the quarter, from $218.4m.