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Omnicom Q4 Earnings & Revenues Beat Estimates, Increase Y/Y
OMCOmnicom Group(OMC) ZACKS·2025-02-05 16:15

Core Insights - Omnicom Group Inc. reported strong fourth quarter 2024 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][2] Financial Performance - Earnings per share were 2.41,beatingtheconsensusestimateby42.41, beating the consensus estimate by 4% and increasing by 9.6% year-over-year [2] - Total revenues reached 4.3 billion, slightly surpassing the consensus mark and growing 6.4% year-over-year [2] - The growth was driven by a robust performance in the advertising and media segment, influenced by the U.S. presidential election and the holiday season [2] Revenue Growth Breakdown - Organic revenue growth contributed 5.2%, while acquisition revenues increased by 1.8%, primarily due to the acquisition of Flywheel Digital [3] - Experiential revenues rose by 4.9%, while Advertising & Media revenues increased by 7.1%, both underperforming expectations [4] - Branding & Retail Commerce revenues grew by 11.6%, exceeding estimates, and Public Relations revenues jumped by 10.3%, also outperforming expectations [4] - Precision marketing revenues met estimates with a 9.1% increase, while Healthcare revenues declined by 4.3% [5] Regional Performance - Year-over-year organic revenue growth was 9.9% in the U.S., 1.8% in Asia Pacific, 1.2% in the U.K., 1.7% in the Middle East & Africa, 16.1% in Latin America, and 0.1% in Other North America [6] - Revenues in European Markets & Other Europe declined by 2.1% [6] Margin Analysis - EBITA for the quarter was 707.6million,a6.7707.6 million, a 6.7% increase from the previous year, with an EBITA margin of 16.4%, up 10 basis points year-over-year [7] - Operating profit was 685.3 million, reflecting a 6% year-over-year increase, while the operating margin remained flat at 15.9% [7]