Omnicom Group has revealed better-than-expected Q4 and full-year 2023 results, despite a range of global economic pressures spearheaded by the ongoing cost-of-living crisis.
In a earnings call yesterday (6 February) the holding company was optimistic for the year to come, in which it expects its acquisition of digital commerce outfit Flywheel Digital, and major events such as the Paris Olympics, the US election and the phasing out of third-party cookies, to fuel growth.
Across the fourth quarter, Omnicom’s organic revenue rose by 4.4%, exceeding internal expectations, whilst full-year organic revenue jumped by 4.1%, excluding acquisition fees.
Omnicom’s profit margin for the quarter was 16.3%, with a full-year margin of 15.2%. Earnings per share for Q4 came to $2.20 (£1.74) – a 5% year-on-year increase.
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Full year earnings per share were $7.41 (£5.87), a 6.9% year-on-year increase compared to the business’ 2022 full-year performance.
Across 2023, the New York-based firm generated $1.9 (£1.5) billion in free cash flow, returning $1.1 billion (£870 million) to shareholders via dividends and share repurchases.
Vice-president and chief financial officer Phillip Angelastro said the company’s advertising and media business grew by 9%, whilst its healthcare network posted more modest 3% growth.
The news was not entirely positive, however, as Angelastro said Omnicom’s experiential marketing business had dropped by 8%, as well as PR which fell 2%. This adverse performance was blamed on the highly-contested 2022 US mid-term elections.
