Omnicom Group has announced its results for the quarter and full year ended December 31, 2021.
“Global organic revenue growth of 9.5 per cent exceeded our expectations in the fourth quarter, operating profit margins remained very strong, and we posted solid quarterly earnings per share,” said John Wren (main photo), chairman and chief executive officer of Omnicom Group Inc.
“Once again, thanks to the efforts of our people across Omnicom, we were pleased to see strong results across all geographies and services, led by our focus on digital, precision marketing and consulting. Our teams are working together in powerful new ways – with leading technology and data solutions – to deliver the best client outcomes in a rapidly evolving market. We are optimistic in our 2022 outlook and expect to continue build on our long-term record of improving profitability and sustained value creation.”
Revenues
The holding company’s worldwide revenue in the fourth quarter of 2021 continued to improve from the negative effects of the COVID-19 pandemic. Revenue increased 2.6 per cent to $US3,855.9 million from $US3,757.0 million in the fourth quarter of 2020.
The components of the change in revenue included an increase in revenue from organic growth of 9.5 per cent, a decrease in acquisition revenue, net of disposition revenue, of 6.6 per cent, and a decrease in revenue from the negative impact of foreign currency translation of 0.3 per cent. The decrease in acquisition revenue, net of disposition revenue, reflects the sale of ICON International, a specialty media business, in June 2021.
Organic growth in the fourth quarter of 2021 compared to the fourth quarter of 2020 increased across all of its fundamental disciplines, including: 7.4 per cent for advertising, 19.6 per cent for precision marketing, 12.4 per cent for commerce and brand consulting, 56.7 per cent for experiential, 5.2 per cent for execution and support, 4.4 per cent for public relations and 4.5 per cent for healthcare.
Organic growth in the fourth quarter of 2021 compared to the fourth quarter of 2020 across Omnicom’s regional markets was as follows: 7.8 per cent for the United States, 1.8 per cent for Other North America, 10.1 per cent for the United Kingdom, 12.7 per cent for the Euro Markets & Other Europe, 7.8 per cent for Asia Pacific, 7.3 per cent for Latin America and 48.1 per cent for the Middle East & Africa.
