Omnicom Ends 2015 With 6.8% Revenue Growth In MEA

Omnicom Group

Omnicom Inc. has closed 2015 on a good note. The quarterly revenues decreased 1 percent year-over-year to USD 4.15 billion from USD 4.19 billion. The holding company informed that the decrease in revenues was due to decline in revenues from acquisitions, net of dispositions and negative impact of foreign exchange rates. Revenues for full year ending December 31, 2015 also declined. It stood at USD 15.13 billion as compared to USD 15.32 billion of the previous year.

Despite the disappointing revenue figures, the company witnessed organic growth, which contributed 4.8 percent to sales. It reported net income of USD 331.6 million in the fourth quarter of 2015, as compared to USD 329.5 million in the same quarter last year. This increase in earnings was mainly driven by lower operating expenses. The company reported net income of USD 1.09 billion for full-year 2015 as compared to USD 1.10 billion in the last year quarter. The company witnessed organic growth for the year, which contributed 5.3 percent to sales.

John Wren, Omnicom Group
John Wren, Omnicom Group

“It was an excellent quarter for Omnicom. We recruited some of the best talent in our industry, continued to win significant new business, and made a couple of important agency acquisitions. It was a terrific way to end the year,” commented John Wren, President, CEO and Director, Omnicom Group.

Omnicom Group’s business as a whole, in Q4, reported 5 percent growth in the Middle East and Africa region. The holding company recorded 4.7 percent organic revenue growth in North America, 4.9 percent in the UK, 3.5 percent in other European markets, 8.6 percent in Asia Pacific and 0.4 percent in Latin America.

The organic revenue for the full year, ending in December, was increased by 6.8 percent in Middle East and Africa, 5.4 percent in North America, 7.1 percent in the UK, 3.7 percent in other European markets, 7.9 percent in Asia-Pacific and dropped by 3.3 percent in Latin America.

Organic revenues for Q4 in advertising were up 12.6 percent year-over-year to USD 2.22 billion, while revenues for CRM, PR and Specialty each decreased by 1.5 percent, 6.9 percent and 5.9 percent respectively.

The major disappointment for Omnicom was the revenue dip from its PR agencies. Omnicom’s PR agencies include the likes of FleishmanHillard, Ketchum, Porter Novelli, Marina Maher Communications.

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