Advertisement

Omnicom's Net Income Grew 13% in Q2

Revenue growth exceeded Wall Street's expectations

CEO John Wren expects 4 percent organic growth this year.

Omnicom Group generated net income of more than $318 million in the second quarter, up 13 percent from the same period last year.

Revenue for the quarter grew 6 percent to $3.87 billion, exceeding the estimates of Wall Street analysts, who had projected revenue of $3.74 to $3.82 billion, according to Yahoo Finance.

On a per share basis, quarterly earnings amounted to $1.23, again exceeding analyst forecasts of $1.14 to $1.18.

"It was a solid quarter for Omnicom on all fronts," said CEO John Wren, during a call with analysts.

The second-quarter results represented a marked improvement from the first quarter, when revenue and net income grew just 3 percent and less than 1 percent, respectively. The Q1 numbers were weighed down by $7 million in expenses related to the planned merger with Publicis Groupe that the two companies later scrapped. Those expenses shrank to just $1.8 million in Q2.

Omnicom ended the first half with net income of $520 million on revenue of $7.37 billion, up 8 percent and 5 percent, respectively, from the first six months of 2013.

On an organic basis, revenue grew nearly 6 percent for the quarter and 5 percent for the first half. Regionally, North America led the way, with organic growth of 8 percent for the quarter and 6 percent for the half. No. 2 was Europe, where revenue grew 5 percent organically in each period.

Advertisement

Advertisement