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NEW YORK - Omnicom Group (NYSE:OMC) reported third-quarter earnings that exceeded analyst expectations, with adjusted earnings per share of $2.24 surpassing the consensus estimate of $2.16 and revenue of $4.04 billion slightly ahead of the $4.02 billion forecast.
OMC shares were trading 0.5% lower after-hours following the release.
The marketing services giant posted revenue growth of 4.0% compared to the third quarter of 2024, with organic growth contributing 2.6% and favorable currency translation adding 1.4%.
Media & Advertising led the company’s performance with impressive 9.1% organic growth, while Execution & Support and Precision Marketing segments grew by 2.0% and 0.8% respectively. These gains were partially offset by declines in other business units, including a 7.5% drop in Public Relations and steeper falls in Experiential (17.7%) and Branding & Retail Commerce (16.9%).
"We expect to close the Interpublic acquisition next month, creating the world’s leading marketing and sales company," said John Wren, Chairman and Chief Executive Officer of Omnicom. "We’re already seeing strong momentum with significant new business wins across both companies, underscoring the compelling opportunities this acquisition creates."
Regionally, the United States performed well with 4.6% organic growth, while Latin America surged 27.3%. However, Asia Pacific declined 3.7% and Euro Markets & Other Europe fell 3.1%.
The company’s operating income decreased 11.7% to $530.1 million, with operating margin falling to 13.1% from 15.5% a year earlier, primarily due to $60.8 million in acquisition-related costs for the pending Interpublic Group deal and $38.6 million in repositioning costs.
Omnicom’s adjusted EBITA margin improved slightly to 16.1% from 16.0% in the prior-year period, reflecting the company’s ongoing operational efficiency despite integration preparations.
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