Omnicom Group has announced its results for the quarter ended March 31, 2023. All numbers are in US dollars.
Reported total revenue in the first quarter of 2023 increased $33.0 million, or one per cent, to $3,443.3 million.
Worldwide revenue growth in the first quarter of 2023 compared to the first quarter of 2022 was led by an increase in revenue from organic growth of $178.7 million, or 5.2 per cent. Acquisition revenue, net of disposition revenue, decreased $35.7 million, or one per cent, primarily reflecting the disposition of our businesses in Russia announced in the first quarter of 2022. The impact of foreign currency translation was a decrease of $110.0 million, or 3.2 per cent.
Organic growth by discipline in the first quarter of 2023 compared to the first quarter of 2022 was as follows: 5.1 per cent for Advertising & Media, seven per cent for Precision Marketing, 5.8 per cent for Public Relations, 4.8 per cent for Healthcare, 8.4 per cent for Experiential, 3.6 per cent for Execution & Support, and 3.3 per cent for Commerce & Brand Consulting. In the first quarter of 2023, we realigned the classification of certain services primarily within our Commerce & Brand Consulting, Execution & Support, and Experiential disciplines and revenue by discipline amounts for prior periods were revised to reflect the current period presentation.
Organic growth by region in the first quarter of 2023 compared to the first quarter of 2022 was as follows: 5.1 per cent for the United States, 5.4 per cent for the Euro Markets & Other Europe, 5.9 per cent for the United Kingdom, 2.8 per cent for Asia Pacific, 12.2 per cent for Latin America, 9.5 per cent for the Middle East & Africa, and 6.6 per cent for Other North America.
On an earnings call with investors on April 18, CEO John Wren (lead image) said the economic outlook for the rest of the year remains uncertain as the US Federal Reserve Board continues to raise interest rates.
Wren commented: “The Fed hasn’t stopped,” he said. “[I and other leaders] expect there is still going to be a lot more uncertainty until the Fed and its partners around the world think they’re done.”
On today’s numbers, Wren said: “Our business grew organic revenue by 5.2 per cent in the first quarter, a solid start to the year.
“Despite many macroeconomic, technological and social factors facing our clients, Omnicom is guiding the world’s top companies and their brands to continued growth with highly-specialised marketing and communications services driven by leading analytics, creativity, data, and digital media solutions.”
Wren added, “We took operational steps this quarter and have further plans in place to mitigate the impact of potential macro headwinds on our profitability, while continuing to deliver attractive returns. As we look ahead in 2023, we expect organic growth, portfolio enhancement, financial discipline, and thoughtful capital allocation to continue to benefit our clients and our shareholders.”