Omnicom Group topped analyst expectations for the first quarter of 2018, but the holding company saw slight slowdown in North America, where organic growth decreased 0.1 percent compared to Q1 2017.
Overall, Omnicom reported revenue of $3.6 billion for the first quarter, an organic revenue increase of 2.4 percent. While North America – the company’s largest market – reported a dip in organic growth, the United Kingdom grew 3.1 percent organically, Latin America increased 3.1 percent, Asia Pacific was up 7.3 percent and European markets jumped 9.7 percent. The Middle East and Africa, however, decreased 8.5 percent organically in Q1.
North America made up more than half (54.7 percent) of Omnicom’s revenue for the first quarter, according to the report, followed by European markets at 19.6 percent, Asia-Pacific at 10.8 percent and the U.K. at 9.9 percent.
Net income for the first quarter increased 9.2 percent to $264.1 million from $241.8 million in the same period last year.
Compared to Q1 2017, organic growth in advertising increased 1.6 percent, CRM consumer experience was up 6.9 percent, CRM execution and support increased 1.2 percent, PR was up slightly at 0.7 percent and healthcare grew 2.7 percent. The majority of Omnicom’s revenue (52.4 percent) came from advertising for the first quarter.
Pivotal Research Senior Analyst Brian Wieser said in his report Tuesday that the media segment for Omnicom was led by Hearts & Science and PhD, which was offset by "relative weakness" at OMD.