Omnicom profits as $1bn in new-business wins pay off

NEW YORK - Omnicom Group, the world's third-largest advertising group, has reported strong results, despite the ad downturn, with an increase in pre-tax profits of 12.2% for the year, up to $900m (£630m) and boosted by new-business performance.

The group has met analyst expectations with the latest set of results, with earnings per share for the quarter of 87 cents. The yearly earnings per share figure is $2.70, in line with company and analyst forecasts.



Omnicom, which owns the BBDO Worldwide, the DDB Worldwide and TBWA Worldwide advertising agency networks, as well as the world's largest PR network, Fleishman-Hillard, said revenues had lifted, on a worldwide basis, from $6.2bn to $6.9bn for the year -- an increase of 11.3%.



The healthy result reflects Omnicom's strong year of new-business wins, which saw it take on $1.08bn in new business, including Pepsi and the Campbell's Soup ad account.



Its fourth-quarter results saw the group post earnings of $289m, up from $253m for the same period in 2000. Revenue for the period was up 9% on 2000 at $1.97bn.



In December, Omnicom CEO John Wren said the company was aiming for double-digit earnings in 2002 -- in contrast to a more pessimistic outlook from Sir Martin Sorrell, chairman and CEO of WPP Group.



WPP, the world's second-largest ad group, will release its 2001 results on Wednesday.



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