Omnicom Reports 'Solid Growth' For Q2

Omnicom group posted a 2.1% second-quarter revenue increase to $3.6 billion, while net income grew 2.4% to nearly $290 million, the holding company said Thursday. Organic revenue growth -- a key performance metric for the ad industry -- was up 2.8%.

For the first half of the year, revenues were up 2.4% to slightly more than $7 billion with a profit gain of 1.5% to $495 million. Like the second quarter, organic growth for the first half was 2.8%.

The company’s organic growth dipped compared to a year ago, when it reported a 5.1% increase for the second quarter and first-half periods.

Company executives attributed the drop largely to comparative headwinds that resulted from the lack of Olympics-related campaigns this year versus a year ago when a number of clients ordered advertising for the London 2012 summer games.



Revenue in the company's car category was down 11% in Q2, due to the loss of its Chevrolet account. But given other auto accounts, globally the category still accounted for 8% of the company's total revenue, compared to 9% in the second quarter of 2012.

Categories that showed sizable revenue growth include travel and entertainment -- up more than 16% -- and consumer products, up a little more than 7%.

All regions except the ailing Europe experienced “solid growth” in Q2, Omnicom CEO John Wren told analysts on a conference call Thursday morning. Even Europe seems to be stabilizing “but not rebounding yet,” added company CFO Randall Weisenburger.

Wren said the company continued to implement its core strategy of attracting and retaining top talent, expanding both its global footprint and portfolio of services and bulking up on digital and analytic capabilities.

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