Omnicom Group posts $3,406.9 million as worldwide revenue for Q1 2020
The company's financial reports also say that its advertising decreased by 0.1% in Q1 2020 compared to the same quarter in 2019
Omnicom Group’s worldwide revenue has slipped 1.8% in the first quarter of 2020. The revenue of the company has fallen to $3,406.9 million from $3,468.9 million in the same quarter last year. The fall has been primarily attributed to the negative effects of foreign exchange rates and disposition activity in excess over the past year.
But as compared to their first quarter, its diluted net income per share for the first quarter of 2020 increased by two cents or 1.7%. It rose to $1.9 per share from $1.17 in Q1 of 2020.
Net income for Omnicom Group Inc. for Q1 2020 decreased by $5.1 million or 1.9%. It dropped to $258.1 million compared to $263.2 million in the first quarter of 2019.
The company also revealed that advertising decreased by 0.1% in Q1 2020 compared to Q1 2019. “CRM Consumer Experience decreased 1.3%, CRM Execution & Support decreased 0.9%, Public Relations increased 0.2% and Healthcare increased 9.6%,” it stated.
Organic growth in Q1 of 2020 compared to previous year’s in Omnicom’s regional markets were as follows: the United States increased 1.7%, Other North America increased 0.6%, the United Kingdom increased 3.7%, the Euro Markets & Other Europe decreased 2.3%, Asia Pacific increased 2.0%, Latin America decreased 5.0% and the Middle East & Africa decreased 28.4%.
The company’s operating profit in the quarter decreased by $8.7 million (2%). Dropping from $428.9 million to $420.2 million. Its operating margin for the first quarter of 2020 fell to 12.3% versus 12.4% in the corresponding quarter last year.
Its operating margin for the first quarter of 2020 decreased to 12.3% versus 12.4% for the first quarter of 2019.
“Beginning late in the first quarter of 2020, revenue was also negatively impacted by the coronavirus 2019 ("COVID-19") pandemic,” the group’s official release stated.
The effects of the pandemic have impacted the global economy, and public health efforts have issued limitations on travel and public gathering. The company said that the actions have negatively impacted its clients’ businesses, which in turn, has affected Omnicom’s.
“As a result, we experienced a reduction in our revenue beginning late in the first quarter of 2020, as compared to the same period in 2019, and is expected to continue for the remainder of the year. Such reductions in revenue could adversely impact our ongoing results of operations and financial position and the effects could be material,” stated the company.
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