Omnicom has crushed rival Publicis Groupe to the punch, being the primary of the large advert holding corporations to report Q2 2022 outcomes.
And we wager they want the remainder of the yr appears likes this. Income could also be flat yr on yr at $3.5bn with working margins down a bit however natural progress got here in at a wholesome 11.3%, down a bit from the 11.9% in Q1.
The US was up 10.7%. Europe 15.1%, the UK grew 12% and Asia Pacific 4.7%, hit by continued lockdowns in China. Comparisons with 2021, although, are nonetheless straightforward.
The remainder of the yr is unlikely to be as sunny with rampant inflation, continued Covid worries and the struggle in Ukraine seemingly impacting every thing. Omnicom raised its full yr forecast to six.5-7%, which suggests it expects a pointy slowdown within the second half of the yr.
CEO John Wren (above) is placing a cautious word, saying “We’re not ones to over prolong ourselves” with a recession on the playing cards.
He went on: “We spent lots of time cleansing up the portfolio, and within the final 18 months, have been including to these areas which ship the best progress. We proceed to speculate organically in issues we consider will add to our income subsequent yr and past.”
On recession fears he stated: “Everyone is cautious due to the unknowns which can be on the market, however most refined entrepreneurs who’ve lived by means of previous recessions know that in the event that they reduce too deeply, they lose gross sales because the restoration begins to occur. So persons are very cautious about critical cutbacks, so long as there is no such thing as a dramatic flip within the market.”
