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International: Omnicom Reports 14% Jump in Third-Quarter Profit

International: Omnicom Reports 14% Jump in Third-Quarter Profit

Author | Source: Advertising Age | Wednesday, Oct 24,2007 8:31 AM

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International: Omnicom Reports 14% Jump in Third-Quarter Profit

NEW YORK (AdAge.com) -- Omnicom Group reported a better-than-expected 14% jump in quarterly profit today, saying that clients have not pulled back spending despite concerns about the U.S. economy.

Omnicom's chief financial officer, Randall Weisenburger, told investors that while there is "a lot of economic noise in the marketplace," the holding company hasn't experienced changes in clients' marketing outlays.

Omnicom, the parent company of media agencies OMD and PHD and creative agencies BBDO and DDB, reported third-quarter net income of $202.2 million, up 14% from $177.1 million in the year-ago period.

Much of the growth was international, with U.S. revenue for the third quarter up 7.4% and international revenue increasing 17.2%.

Revenue rose 11.8% to $3.10 billion and organic revenue, which excludes the impact of recent acquisitions and foreign currency, grew 7%.

For the first nine months of 2007, Omnicom's net income climbed 12.8% to $661.9 million from $586.8 million during in the same time period in 2006.

Omnicom, the world's largest advertising-holding company, outpaced the second-largest holding company, WPP Group, in third-quarter revenue growth. London-based WPP reported a 5% growth in its third quarter.

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