(MENAFN- PRovoke)
NEW YORK - Omnicom on Tuesday reported that PR agency revenue was up 12.7% in the fourth quarter of 2022 and 13.7% during the full year.
During Q4, Omnicom PR Group - which includes FleishmanHillard, Ketchum and
Porter Novelli - fared better than five other disciplines including commerce & brand consulting (7.2%), advertising & media (6%), healthcare (6.4%), precision marketing (11.6%) and execution & support, which decreased by 2.8%. Experiential was up 17%.
In its Q4 earnings report, the holding company reported Omnicom as a whole saw worldwide revenue in the three months ending December 31 increase 7.2% on an organic basis to nearly $3.9 billion.
Growth was led by an increase in revenue from organic growth of $276.8 million.
Acquisition revenue, net of disposition revenue, decreased $53.5 million, or 1.4%, primarily reflecting the disposition of the holding company's businesses in Russia in the first quarter of 2022.
The impact of foreign currency translation was a decrease of $211.0 million, or 5.5%.
Reported total revenue in the fourth quarter of 2022 increased $12.3 million, or 0.3%, to $3,868.2 million.
Organic growth by region in the fourth quarter of 2022 compared to the fourth quarter of 2021 was as follows: 5.6% for the United States, 9.9% for the United Kingdom, 5.1% for the Euro Markets & Other Europe, 6.9% for Asia Pacific, 18.2% for Latin America, 7.3% for Other North America, and 32.6% for the Middle East & Africa.
'Fourth quarter organic revenue growth of 7.2% was stronger than we expected, led by resilient performance across global geographies and continued strength in our faster growing disciplines,' said CEO and chairman John Wren. 'We enter 2023 in a very strong position, building on last year's significant new business wins and bringing together creativity, digital technology, and data to create marketing solutions that are responsive to the business transformation needs of our clients. At the same time, we are closely tracking the macroeconomic outlook and are fully prepared to respond appropriately.
We are confident that the flexibility and diversity of our business and the strength of our balance sheet will continue to create value for our shareholders.'
The holding company's worldwide revenue growth in 2022 compared to 2021 was led by an increase in revenue from organic growth of $1,346.3 million, or 9.4%.
Acquisition revenue, net of disposition revenue, was a decrease of $665.6 million, or 4.7%, primarily reflecting dispositions in the advertising & media discipline in the second quarter of 2021 and the disposition of businesses in Russia in the first quarter of 2022.
The impact of foreign currency translation was a decrease of $681.0 million, or 4.8%.
Reported total revenue in 2022 decreased $0.3 million to $14,289.1 million.
Organic growth by discipline in 2022 compared to 2021 included 13.7% for public relations, which performed better than advertising & media (7.3%), commerce & brand consulting (10.7%), healthcare (7.1%) and healthcare (4%). Precision marketing rose 17.1% and experiential rose by 26.1%.
Organic growth by region in 2022 compared to 2021 was as follows: 8.7% for the United States, 10.9% for the United Kingdom, 9.7% for the Euro Markets & Other Europe, 6.6% for Asia Pacific, 14.1% for Latin America, 9.2% for Other North America, and 33.2% for the Middle East & Africa.
With Q4 2022 up, Omnicom has had seven consecutive quarters of PR growth, having seen a 12.6% increase in Q3, a 15.8% increase i n the second quarter of the year, a 14% increase in the first quarter of this year, a 4.4% increase in q4 2021 , a 10.5%. increase in revenue during q3 and 15.1% growth in revenue during the second quarter of the year - a turnaround from the 3.5% decline the PR group experienced in the first quarter of 2021.
That had followed the positive turn Omnicom's PR agencies saw in q4 2020 , when the group's revenue rose 0.2%, the first reported uptick in business since the onset of the Covid-19 pandemic in March 2020. The group saw revenue drop 3.4% in q3 of 2020 and 13.5% during q2 , the height of the pandemic shutdown.
All of which occurred against the backdrop of Omnicom and its agencies, including its PR firms, implementing layoffs and furloughs around the world in response to business drying up.
The report also comes nearly one and a half years since Omnicom hired chris foster as ceo of its $1.3 billion PR agency unit, and close to two years after karen van bergen relinquished the role.
MENAFN07022023000219011063ID1105540222
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.