Omnicom second quarter finances take a hit

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Omnicom second quarter finances take a hit

Omnicom Group Inc. has announced a net loss for the second quarter of 2020 of $24.2 million compared to net income of $370.7 million in the second quarter of 2019. The second quarter of 2020 included a net after-tax decrease of $223.1 million

 

The results equate to a 46.3% decrease to $198.9 million compared to $370.7 million in the second quarter of 2019.

Primarily due to the negative effects on our revenue arising from the COVID-19″ pandemic, Omnicom’s worldwide revenue in the second quarter of 2020 decreased 24.7% to $2,800.7 million from $3,719.8 million in the second quarter of 2019. The components of the change in revenue included a decrease in revenue from the negative impact of foreign currency translation of 1.7%, a decrease in acquisition revenue, net of disposition revenue of 0.1% and a decrease in revenue from negative organic growth of 23.0% when compared to the second quarter of 2019.

Organic growth in the second quarter of 2020 as compared to the second quarter of 2019 in our five fundamental disciplines was as follows: Advertising decreased 26.6%, CRM Consumer Experience decreased 25.6%, CRM Execution & Support decreased 27.6%, Public Relations decreased 13.9% and Healthcare increased 3.2%.

Across regional markets, organic growth in the second quarter of 2020 as compared to the second quarter of 2019 was as follows: the United States decreased 20.7%, Other North America decreased 29.6%, the United Kingdom decreased 23.7%, the Euro Markets & Other Europe decreased 29.4%, Asia Pacific decreased 18.6%, Latin America decreased 24.1% and the Middle East & Africa decreased 39.4%.

Omnicom CEO John Wren (pictured above) said: “The quarter posed extraordinary challenges. The effect of COVID and related lockdowns were unprecedented. We think the worst is behind us, with Q2 being the worst point for year-over-year revenue declines.”

Omnicom agency networks include BBDO, DDB, TBWA and OMD.

Read the full Omnicom statement here.