NEW YORK Riding revenue surges in both its domestic and international operations, Omnicom Group, the largest global holding company, today said its net income for the third quarter grew 9.5 percent to $177 million on a 10 percent revenue increase to nearly $2.8 billion, compared with the same period a year ago.
"We're exceptionally pleased with the company's performance," said Omnicom CEO John Wren, adding that Omnicom's investments, particularly in China, "are beginning to yield exceptional results. I'm bullish on the future in terms of business becoming available on a global basis."
Wren cited an uptick in Omnicom's public relations and specialty services agencies as significant contributors to the third-quarter results.
Diluted earnings per share in the third quarter increased 15.5 percent to $1.04 from 90 cents in Q3 2005.
Domestic revenue for the quarter was up close to 8 percent to more than $1.5 billion, while international revenue increased nearly 13 percent to $1.2 billion. About 55 percent of Omnicom's business originates in the U.S.
The numbers continue an overall positive yearlong trend for Omnicom, which has tallied a 9 percent net-income increase to $587 million on an 8 percent revenue spike to $8.1 billion for the first nine months of the year.
The New York-based company made two acquisitions during the third quarter: St. Louis ad agency Rodgers/Townsend and digital shop EVB in San Francisco [Adweek Online, Aug. 10].
Seeking to strengthen its position in the Asia-Pacific marketplace, Omnicom in June entered into a strategic partnership with CITIC Guoan Group in China. That pact undercut Omnicom archrival WPP Group, which previously had an alliance with CITIC Guoan through its Grey agency network.
Wren said China and India would be Omnicom's main focus "for the foreseeable future."
Omnicom's networks and specialty firms provide advertising, strategic media planning and buying, direct and promotional marketing, public relations and other communications services to over 5,000 clients in more than 100 countries. Omnicom's global advertising networks are BBDO, DDB and TBWA.