Omnicom PR Agencies Up 3.7% In 2024

(MENAFN- PRovoke) NEW YORK - Omnicom's PR revenue rose 3.7% in 2024, which was capped by 10.3% in the fourth quarter of the year - by far the biggest lift the group has seen in more than a year.

During the full year, Omnicom PR Group - which includes FleishmanHillard, Ketchum and Porter Novelli - performed better than three of the holding company's other disciplines including healthcare (-0.4%), execution & support (-0.5%) and branding & retail commerce (-6.2%). OPRG lagged behind media & advertising (7.8%), precision marketing (3.8%) or branding & retail commerce (6.2%).

Revenue in 2024 increased $996.9 million, or 6.8%, to $15,689.1 million. Worldwide revenue growth in 2024 compared to 2023 was led by an increase in organic revenue of $768.7 million, or 5.2%. Acquisition revenue, net of disposition revenue, increased revenue by $293.7 million, or 2.0%. The impact of foreign currency translation reduced revenue by 0.4%.

Organic growth by region in 2024 compared to 2023 was as follows: 6.8% for the United States, 2.8% for Euro Markets & Other Europe, 3.8% for Asia Pacific, 2.7% for the United Kingdom, 17.2% for Latin America, and 5.2% for the Middle East & Africa, partially offset by a decline of 1.5% for Other North America.

With revenue up 10.3% In Q4, however, the PR group performed better than all of the holding company's other disciplines including precision marketing (9.1%), media & advertising, (7.1%), execution & support (1.8%), and experiential (4.9%). Declines were seen by 4.3% for Healthcare (-4.3%) and branding and retail commerce (-11.6%). The group saw 4.3% growth in Q3.

Revenue in the fourth quarter of 2024 increased $261.3 million, or 6.4%, to $4,322.2 million. Worldwide revenue growth in the fourth quarter of 2024 compared to the fourth quarter of 2023 was led by an increase in organic revenue of $212.2 million, or 5.2%.

Organic growth by region in the fourth quarter of 2024 compared to the fourth quarter of 2023 was as follows: 9.9% for the US, 1.8% for Asia Pacific, 1.2% for the UK, 16.1% for Latin America, 0.1% for Other North America, and 1.7% for the Middle East & Africa, partially offset by a decline of 2.1% for Euro Markets & Other Europe.

"With 5.2% organic revenue growth for both the fourth quarter and full year, and even higher growth in adjusted EBITA and adjusted EPS, our strong operational execution gives us confidence for continued strength in 2025," said Omnicom chairman and CEO John Wren.

"From this position of strength, we are incredibly well prepared for and excited about the complementary combination of businesses and cultures with our proposed acquisition of Interpublic. Together, clients and employees will benefit from expanded products to deliver superior creativity, innovation and effectiveness,” he said in a statement.“ We will also bring together unparalleled data assets to market, fueling leading creative, produced at scale, and activated by the world's top-ranked media practice to drive measurable sales. We see significant upside potential through expected revenue and cost synergies that can drive growth beyond what Omnicom was delivering alone."

Omnicom's 2024 earnings report comes roughly two months after Omnicom announced it acquired the Interpublic Group in a deal that most observers believe will create the world's largest marketing services group with combined 2023 revenue of $25.6 billion. The merged entity will be parent to four of the world's top 20 public relations agency brands.

In terms of public relations, Omnicom owns top 20 firms FleishmanHillard and Ketchum, as well as smaller operations such as Porter Novelli and MMC, as well as several public affairs brands. Interpublic is parent to The Weber Shandwick Collective (which includes Current Global) and Golin.

It is unclear how the merger will impact these public relations brands, although it appears there are no immediate plans for restructuring.

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