Omnicom Group, boosted by stronger-than-expected organic growth, today reported a net income gain of nearly 13 percent in the last quarter of 2012.
The company ended the quarter with $307.1 million in net income. Revenue for the period grew more than 2 percent to $3.94 billion.
On a per share basis, net income grew nearly 18 percent to $1.13 a share, compared to the same quarter in 2011.
Speaking to industry analysts, Omnicom CEO John Wren said that while the holding company sees signs of macroeconomic stability and “even” evidence of improvement, Omnicom expects only “modest global growth” in 2013. He added that the company would continue to focus on controlling costs and increasing productivity this year.
Domestically, revenue climbed 5.1 percent to just over $2 billion for the quarter while international revenue, dragged down by continuing weakness in Europe, was flat at $1.9 billion. The company is not expecting improvements in the region any time soon, although Russia is performing well.
On an organic basis, revenue grew 3 percent for the quarter and 4 percent for all of 2012.
Full-year net income rose nearly 5 percent to $998.3 million on worldwide revenue growth of 2.5 percent (to $14.2 billion). Domestic revenue for the year climbed 4.5 percent to $7.4 billion, and international revenue was flat at $6.8 billion.
Looking forward, Omnicom’s Wren said it was difficult to accurately predict performance in 2013, given the uncertainty about federal sequester spending cuts, due on March 1, and the impact of higher payroll taxes on consumer spending.
For his part, chief financial officer Randy Weisenburger said 2013 feels like 2012 from an economic standpoint, but without the revenue boost of the Olympics.