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| John Wren |
Omnicom’s PR group suffered a 15.3 percent drop in Q2 revenues to $295.8M as the COVID-19 pandemic took a toll on its travel, lodging, entertainment, energy, retail and automotive clients. Organic growth slipped 13.9 percent.
The FleishmanHillard, Porter Novelli, Ketchum, Mercury, Portland, Cone and Marina Maher Communications operation posted $627.5M first-half revenues, which was down 8.2 percent on a reported basis and 7.0 percent organically.
Healthcare, technology, telecommunications, financial services and consumer products spending held up “relatively well,” though conditions are volatile and economic uncertainty cuts across all clients, industries and geographies,” according to Omnicom’s financial report.
CEO John Wren expects demand for his firm’s services will decline “as marketers reduce expenditures in the short term due to the uncertain impact of the pandemic on the global economy.”
Omnicom has realigned agencies’ cost structures via layoffs, furloughs, right-of-use asset impairments and other real estate costs, and disinvestments.
Those actions “were taken to tailor their services and capabilities to changes in client demand.”
Overall, Omnicom registered a $24.2M Q2 loss, compared to a $370.7M year-ago profit, as revenues tumbled 24.7 percent to $2.8B.
The company earned $234M for the six-month period, down 63.1 percent from last year’s period.
WPP reported a 5.5 percent decline in Q1 PR revenues to $292M as its BCW and Hill & Knowlton units suffered the loss of Pfizer assignments, and cutbacks in client spending due to the economic uncertainty.
Interpublic CEO Philippe Krakowsky said the firm is off to a “solid start to the year” as its flat $2.2B net revenues are in line with 2024 financial targets.
Why financial planning always plays a crucial role in every PR firm’s success.
Omnicom CEO John Wren reports Q1 revenues jumped 5.4 percent to $3.6M, powered by a solid 7.0 percent rise in its advertising & media segment.
Public Policy Holding Company registered 24.1 percent growth to a record $135M during the past year, which included the results of the March 1 acquisition of Multistate Assocs.
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