Omnicom Group has reported worldwide revenue dropped 3.6 per cent to $US3.7 billion ($A5.2 billion) in the second quarter of 2019, down from $US3.9 billion for the same period last year.
The holding company has blamed foreign exchange rates and excess payouts for acquisitions for the declines.
Australia – which falls under its Asia-Pacific reporting – was one of the group’s poorer performers when compared to the likes of the US and UK.
One positive from the results was its healthcare businesses that was up 1.8 per cent to $US370.7million ($A528 million) in the second quarter of 2019.
Across all regions, organic growth in the second quarter of 2019 as compared to the second quarter of 2018 was: 3.2 per cent in the US, 11.8 per cent for “other North America”, 5.7 per cent in the UK, 1.5 per cent for Europe, and 1.9 per cent for APAC (that includes Australia).
However, Latin America decreased 2.4 per cent and the Middle East and Africa decreased 8.3 per cent.
Commenting on the results, company CEO John Wren said: “Omnicom’s success is grounded in our steadfast focus on our growth strategies” and the company’s commitment to “creativity and diversity.”
“We remain focused on relentlessly pursuing organic growth by expanding our service offerings,” he said.
Wren added that the recent Cannes Lions “was the return to celebrating creativity as the most sought-after force in our industry”. He said that at Cannes, all three creative networks placed in the top five of Network Category of the Year, and that Omnicom agencies took home over 200 Lions.
“Cannes was a recognition for the first time in a long time, that clients realise that the differentiation is the quality of the creative people that you have,” Wren said.
He also savaged the consultancies who were everywhere at Cannes two years ago but were hardly noticeable in 2019.
“They can put in enterprise systems and do fancy things and pretend that they’re in our business but in fact they don’t have any creative assets,” Wren added.