Revenue grew modestly and net income was flattish for Omnicom Group in the first quarter of the year in yet another sign that the ad marketplace remains difficult.
Omnicom posted net income of $199.7 million in Q1, compared to $200.1 million in the same period last year. Revenue for the quarter grew just 3 percent to $3.39 million.
Still, the company managed to deliver earnings per share of 76 cents—up from 72 cents in the year-ago period and a penny more than Wall Street analysts had expected. The revenue result was in line with analysts’ projections.
Domestically, revenue grew more than 4 percent, while internationally, the increase was merely 1 percent, dragged down by a decline in most of Europe. In the U.K., however, revenue grew about 6 percent.
By marketer category, Omnicom, parent to agencies such as BBDO, DDB and TBWA, experienced revenue declines in financial services (down 5 percent) and automotive (down less than 1 percent).
The significant gains came in consumer products (up 12 percent), technology (up 7 percent), pharmaceuticals and healthcare (up 6 percent) and travel and entertainment (also up 6 percent). Other categories, such as telecommunications and food and beverage, were relatively flat.
In mid-morning trading, Omnicom's share price dipped nearly $1 below yesterday's closing price $59.26, according to Yahoo Finance. That's still near the stock's 52-week high of $60.23, however.