Omnicom PR Agencies Slightly Up In Q2
Date
7/17/2024 3:16:31 PM
(MENAFN- PRovoke)
NEW YORK - Omnicom's PR revenue rose 0.9% in the second quarter of 2024 after three consecutive quarterly losses for the group.
During Q2, Omnicom PR Group - which includes FleishmanHillard, Ketchum and
Porter Novelli -
performed poorer than the holding company's five other disciplines that saw revenue increases including advertising & media (7.8%), experiential (17.6%), healthcare (2%), precision marketing (1.4%) and execution & support (1.2%). Branding & retail commerce revenue dropped 3.8%.
Revenue in the second quarter of 2024 increased $243.9 million, or 6.8%, to $3.85 billion. Worldwide revenue growth in Q2 compared to the second quarter of 2023 was led by an increase in organic revenue of $188.3 million, or 5.2%.
Acquisition revenue, net of disposition revenue, increased revenue by $93.0 million, or 2.6%, primarily due to the Flywheel Digital acquisition in the Precision Marketing discipline during the first quarter of 2024. The impact of foreign currency translation reduced revenue by $37.4 million, or 1.0%.
Organic growth by region in the second quarter of 2024 compared to the second quarter of 2023 was as follows: 6.3% for the United States, 4.5% for Euro Markets & Other Europe, 6.9% for the United Kingdom, 24.5% for Latin America, and 8.0% for the Middle East & Africa, partially offset by declines of 0.1% for Asia Pacific and 8.3% for Other North America.
“Our 5.2% organic growth in the second quarter drove solid growth in adjusted EBITA & EPS, with good performance in our larger markets and disciplines,” said
chairman and CEO John Wren said in a statement.“With the rapid adoption of Gen AI, creativity and talent matter more than ever to address the breadth and complexity of consumers.
To serve our clients with the best, most advanced capabilities, we continue to strategically align our agencies and invest in robust data and technology, scaled content and production, e-commerce, and retail and performance media - all embedded in our industry-leading Omni platform.”
Albeit slight, OPRG's Q2 lift was notable in that it marked an end to a streak of quarterly losses.
Q1's 1.1% decline in revenue was the third quarterly loss for OMPG, whose revenue dropped 2.9% in Q4 2023 and 5.5% in Q3 - the first quarterly decline the group had experienced since Q1 2021
The Q3 revenue decline followed a flat Q2, which capped eight consecutive quarters of PR growth, having seen a 5.8% increase in Q1, 12.7% in Q4 2022 , a 12.6% increase in Q3 2022, a 15.8% increase i n the second quarter of 2022, a 14% increase in Q1 2022, a 4.4% increase in Q4 2021 , a 10.5%. increase in revenue during Q3 2021 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.
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