More signs of recovery as profits rise 10% at Omnicom

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Jules Grant,

February 17, 2004

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More signs of recovery as profits rise 10% at Omnicom

LONDON - As the ad industry recovery picks up speed Omnicom Group, the world's largest advertising holding company, has seen its quarterly profits rise by nearly 10%.

The group, which owns BBDO Worldwide and TBWA\, posted a fourth-quarter net profit of $221.3m (£116.1m), or $1.17 per share, up from $201.5m the year before.

Overall, revenue has grown to $2.5bn from $2.1bn. US revenue rose 15% to $1.3bn while international revenue increased 22% to $1.2bn.

Analysts say that Omnicom, lead by president and chief executive officer John Wren, holds a more stable position than its two main competitors, Interpublic Group and WPP Group, ahead of an expected rise in adspend this year from the Olympic Games and the US Presidential elections.

Last month, Omnicom unveiled plans to expand from agency services to develop a branded entertainment division. Interpublic's Robert Reisenberg has been poached to head up the unit as president and chief executive officer. He previously headed Interpublic's Magna Global Entertainment division.

Omnicom is the holding company for global advertising agency DDB Worldwide and on the media side owns OMD Worldwide and PHD Network.

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