Omnicom produced year-over-year organic revenue growth of 2.6% in Q3, but net income decreased 11.6% in the same period.
The holding company’s core media and advertising services continued to anchor growth in Q3 with 9.1% organic growth, followed by execution and support at 2%. Healthcare, PR, experiential and branding and retail commerce all declined. In Q3 2024, media and advertising grew 8.8% organically compared to the 12 months prior.
Media growth was strong across all geographies, while the absence of major spending drivers such as a U.S. national election and the Summer Olympics weighed on PR and experiential performance, CFO Philip Angelastro said on the earnings call.
“I wouldn’t say everyone is in a euphoric mood, but everybody has dealt with most of the challenges that have been thrown at them this year, and people are seeing themselves through to the other side,” CEO John Wren said of the company’s clients during the call. “We work hand in hand with our clients, and when they’re prospering, we prosper. When they suffer, we suffer a little bit.”
Omnicom-IPG deal nears completion as EU review moves forward
Omnicom said it’s confident its acquisition of Interpublic will close by the end of November, as the deal enters the final stage of European Union review — the last remaining regulatory hurdle.
The European Commission formally moved the process into its closing phase on October 20, with final approval expected in about 25 working days, around November 24. Once clearance is granted, Omnicom is expected to complete the merger within days.
The company has already received approval in the U.S., U.K. and Mexico, leaving the EU as the final jurisdiction. The transaction, announced in early December 2024, will create the world’s largest advertising holding company, with roughly $26 billion in annual revenue.
Wren teased that the company tentatively plans to outline its post-merger structure and portfolio during the week of CES in early January.
“Amazingly, despite all the predictions which started after we announced this proposed transaction, we haven’t really lost any significant people,” Wren said during the earnings call. “We certainly haven’t lost any business, and we continue to win business.”
Recent media wins include Omnicom Media Group’s PHD, named OpenAI’s first-ever global media agency of record, and OMD, appointed as the global media AOR for Merlin Entertainments, operator of theme parks and attractions such as Legoland and Madame Tussauds. On the creative front, wins included American Express and Porsche accounts.
This article originally appeared on Campaign US.
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