Omnicom Q2 Results: Revs Grow by 1.9%
Omnicom Group Inc. reported a slightly better-than-expected 2.4 percent rise in quarterly profit, mirroring a similar increase in revenue in its home market, according to Reuters.
Domestic revenue rose to $1.9 billion in the second quarter, accounting for 52 percent of total revenue, as advertising spending in the United States gained momentum.
Total revenue rose 2.1 percent to $3.64 billion.
While global advertising spending is expected to improve in the second half of the year, analysts expect Europe to remain weak for Omnicom and rivals WPP and Publicis Groupe .
Omnicom said net income rose to $289.5 million, or $1.09 per share in the second quarter, from $282.7 million, or $1.02 per share, a year earlier.
Revenue from international markets rose 1.9 percent to $1.73 billion, accounting for about 42 percent of the total revenue. It had risen 1.2 percent in the first quarter after three quarters of decline. Shares of the company have risen about 14 percent in the quarter. They closed at $66.77 on the New York Stock Exchange on Wednesday.
Advertising Incomes by Sector
Marketer spending with Omnicom in the second quarter revealed a steep decline in the automotive sector (down 11 percent) and a dip in financial services (down 2 percent). On the plus side, travel and entertainment brands spent nearly 17 percent more than they did in the same quarter of 2012. Other sizeable gains were seen in consumer products (up 7 percent), telecommunications (up nearly 6 percent) and pharmaceuticals/healthcare (up 4 percent).