/ omnicom group
New York-based Omnicom Group reported a fall in revenue of 0.1% to $7.38bn, comprising a comparatively strong underlying organic growth of 3.9%, a decrease in revenue from the negative foreign exchange impact of 1.3%, and a decrease in acquisition revenue, net of disposals, of 2.7%. Apart from the North American region, which saw a 0.6% growth for the six months ended June 30, 2017, Omnicom saw strong growth rates in all other markets. Latin America grew by 5.2%, the UK along with other Euro markets all grew at above 8%, and the Middle East and Africa region grew by 28.7%.
Out of their four fundamental disciplines, Omnicom’s Advertising division was the best performing, experiencing growth of 5.2%, while CRM increased 2.9%, PR by 0.7%, and speciality communications by 2.7%.
Interpublic Group reported a first half revenue of $3.64bn, a 0.6% decrease from the $3.66bn reported in the first half of 2016. Organic growth of 1.5% was reduced 1.1% by currency fluctuations and 1% by net acquisitions and divestures.
This was comprised of an organic increase of 1.7% in the US, which was 1.8% excluding the impact of lower pass-through revenues, and no organic change internationally. Revenue growth was hit negatively by acquisitions (-1.1%) and foreign exchange (-1.0%).
These results were not as strong as the growth shown by IPG in the recent quarters, where they exceeded their expectations. In terms of their agencies, Mediabrands, McCann Worldgroup, Hill Holliday, and Huge all showed positive growth momentum while in terms of client sectors, strength was seen in healthcare, along with growth in the auto and transportation, retail and government fields. These increases were offset by declines in tech and telecoms, and also a fall in financial services and consumer goods.
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