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Omnicom PR Agencies Down 4.5% In Q1 Amid Economic Instability
(MENAFN- PRovoke)
NEW YORK - Omnicom PR revenue dropped by 4.5% in the first quarter of 2025, a significant decline following a 10.3% lift in Q4 2024, amid economic turmoil that marked the start of this year.
Omnicom PR Group - which includes FleishmanHillard, Ketchum and Porter Novelli - was outperformed by all but one of the holding company's other disciplines, branding and retail commerce, whose quarterly year-over-year revenue was down 10%. OPRG lagged behind media & advertising, (+7.2), precision marketing (+5.8% ) and execution % support (+1.9% ), as well as other disciplines that experienced declines including healthcare (-3.2%) and experiential (1.5%).
Q1 saw Omnicom realign the classification of certain services within some of its groups, including public relations, but reclassified prior year periods for consistency, the company said.
Revenue for the company as a whole increased $59.9 million, or 1.6%, to $3,690.4 million. Worldwide revenue growth in the first quarter of 2025 compared to the first quarter of 2024 was led by an increase in organic revenue of $121.9 million, or 3.4%. Acquisition revenue, net of disposition revenue, reduced revenue by $2.8 million, or 0.1%. The impact of foreign currency translation reduced revenue by $59.2 million, or 1.6%, according to Omnicom's earnings report.
Organic growth by region in the first quarter of 2025 compared to the first quarter of 2024 was as follows: 4.6% for the United States, 1.7% for Euro Markets & Other Europe, 6.0% for Asia Pacific, and 14.8% for Latin America, partially offset by declines of 3.6% for Other North America, 0.7% for the United Kingdom, and 9.3% for the Middle East & Africa.
“We are assessing the implications of economic and market events to determine how they will affect our clients and business for the remainder of 2025. While uncertainty has increased, one thing hasn't changed and will always be true - Omnicom is a trusted partner for our clients, offering strategic advice to grow their sales while delivering flexibility, value and performance," said Omnicom chairman and CEO John Wren.
"I am confident that our diversified portfolio and strong balance sheet, together with our experienced leadership teams, will allow us to navigate this challenging economic environment. We are also very excited about the expected closing of the Interpublic acquisition in the second half of this year. It will give the combined company substantial opportunities for revenue growth and distinctive cost synergy potential to drive increased profitability, EPS growth, and free cash flow,” he said.
The Q1 report comes on the heels of a positive close to 2024 , which saw OPRG revenues up 3.7% for the year as a whole and 10.3% during Q4. The PR group performed better than all of the holding company's other disciplines during the fourth quarter.
In December, 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 and 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.
Omnicom PR Group - which includes FleishmanHillard, Ketchum and Porter Novelli - was outperformed by all but one of the holding company's other disciplines, branding and retail commerce, whose quarterly year-over-year revenue was down 10%. OPRG lagged behind media & advertising, (+7.2), precision marketing (+5.8% ) and execution % support (+1.9% ), as well as other disciplines that experienced declines including healthcare (-3.2%) and experiential (1.5%).
Q1 saw Omnicom realign the classification of certain services within some of its groups, including public relations, but reclassified prior year periods for consistency, the company said.
Revenue for the company as a whole increased $59.9 million, or 1.6%, to $3,690.4 million. Worldwide revenue growth in the first quarter of 2025 compared to the first quarter of 2024 was led by an increase in organic revenue of $121.9 million, or 3.4%. Acquisition revenue, net of disposition revenue, reduced revenue by $2.8 million, or 0.1%. The impact of foreign currency translation reduced revenue by $59.2 million, or 1.6%, according to Omnicom's earnings report.
Organic growth by region in the first quarter of 2025 compared to the first quarter of 2024 was as follows: 4.6% for the United States, 1.7% for Euro Markets & Other Europe, 6.0% for Asia Pacific, and 14.8% for Latin America, partially offset by declines of 3.6% for Other North America, 0.7% for the United Kingdom, and 9.3% for the Middle East & Africa.
“We are assessing the implications of economic and market events to determine how they will affect our clients and business for the remainder of 2025. While uncertainty has increased, one thing hasn't changed and will always be true - Omnicom is a trusted partner for our clients, offering strategic advice to grow their sales while delivering flexibility, value and performance," said Omnicom chairman and CEO John Wren.
"I am confident that our diversified portfolio and strong balance sheet, together with our experienced leadership teams, will allow us to navigate this challenging economic environment. We are also very excited about the expected closing of the Interpublic acquisition in the second half of this year. It will give the combined company substantial opportunities for revenue growth and distinctive cost synergy potential to drive increased profitability, EPS growth, and free cash flow,” he said.
The Q1 report comes on the heels of a positive close to 2024 , which saw OPRG revenues up 3.7% for the year as a whole and 10.3% during Q4. The PR group performed better than all of the holding company's other disciplines during the fourth quarter.
In December, 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 and 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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