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Omnicom Group reports ‘strong’ earnings in Q2, despite ‘economic headwinds’

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By Webb Wright | Junior Reporter

July 19, 2022 | 4 min read

Omnicom Group – owner of a number of major agencies, including BBDO Worldwide and TBWA Worldwide – released its results for the second quarter of 2022 (April 1 to June 30) earlier today.

Omnicom banners outside the NY stock exchange

Omnicon Group has reported a 11.3% increase in organic growth for the second quarter of 2022 / Omnicom

The company reported growth despite the worldwide economic strain caused by the ongoing Covid-19 pandemic, the war in Ukraine and a number of other crises.

According to a statement, Omnicom Group experienced an increase in organic growth of around $403.8m (11.3%) in the second quarter of 2022 compared to the same time period last year.

“We performed well on every metric this quarter, led again by double-digit organic revenue growth,” John Wren, chairman and chief executive officer of Omnicom Group, said in a statement.

“As we enter the second half of the year, we are in a strong financial position, and our company is well-prepared to manage through economic headwinds.”

The company also reported a decrease in acquisition revenue of roughly $239m (6.7%), caused in part by “the disposition of [the company’s] businesses in Russia in the first quarter of 2022.” Omnicom Group discontinued its operations in Russia back in March, just weeks after that country’s invasion of Ukraine.

Tuesday’s earnings report marks a change in fortune for Omnicom Group. The holding company experienced a 0.5% decrease in overall revenue in the opening quarter of 2022, caused mainly by its exit from Russia.

Earnings before interest, taxes, depreciation and amortization (EBITA) decreased in Q2 2022 by approximately $27.2m (4.6%), according to the press release. The company’s EBITA margin shrank from 16.5% to 15.8%.

Growth was reported in all of the company’s regional markets for Q2 – with the exception of the Asian Pacific regional market, in which growth “was negatively impacted by Covid-19 lockdowns in China,” per the press release.

Omnicom Group also assured its clients and investors that it was keeping a weather eye on global “risks and uncertainties” – including the aforementioned pandemic and war in Ukraine, as well as “rising inflation and supply-chain disruptions” – and is charting its course for the future accordingly. “We monitor economic conditions closely, as well as client revenue levels and other factors,” the press release says.

“However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions, reductions in client revenue, changes in client creditworthiness and other developments.”

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