Omnicom Group Inc. (NYSE:OMC) shares are trading lower today after the company reported second-quarter FY24 results.
Revenue rose 6.8% Y/Y to $3.85 billion, beating the consensus of $3.82 billion.
This was led by an organic growth of 5.2% Y/Y. Acquisition revenue (net of disposition revenue) increased revenue by 2.6% Y/Y, led by Flywheel Digital's acquisition in the Precision Marketing discipline, and the impact of foreign currency translation reduced revenue by 1.0%.
Adjusted EBITA rose 5.5% Y/Y to $589.6 million, with the margin decreasing to 15.3% from 15.5% a year ago. Adjusted EPS of $1.95 beat the consensus of $1.93.
Organic growth by discipline – 17.6% Y/Y in Experiential, 7.8% Y/Y in Advertising & Media, 2.0% Y/Y in Healthcare, 1.4% Y/Y in Precision Marketing, 1.2% Y/Y for Execution & Support and 0.9% Y/Y for Public Relations.
By region, organic revenue grew 24.5% Y/Y in Latin America, 8.0% Y/Y in the Middle East & Africa, 6.9% Y/Y in the United Kingdom, 6.3% Y/Y in the United States and 4.5% Y/Y in Euro Markets & Other Europe.
“With the rapid adoption of Gen AI, creativity and talent matter more than ever to address the breadth and complexity of consumers,” CEO John Wren said.
Price Action: OMC shares are down 4.83% at $90.79 at the last check Wednesday.
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