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% compared to Q1 2017.
Overall, Omnicom reported revenue of $3.6 billion for the first quarter, an organic revenue increase of 2.4%. While North America – the company’s largest market – reported a dip in organic growth, the United Kingdom grew 3.1% organically, Latin America increased 3.1%, Asia Pacific was up 7.3% and European markets jumped 9.7%. The Middle East and Africa, however, decreased 8.5% organically in Q1.
North America made up more than half (54.7%) of Omnicom’s revenue for the first quarter, according to the report, followed by European markets at 19.6%, Asia-Pacific at 10.8% and the U.K. at 9.9%.
Net income for the first quarter increased 9.2% 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%, CRM consumer experience was up 6.9%, CRM execution and support increased 1.2%, PR was up slightly at 0.7% and healthcare grew 2.7%. The majority of Omnicom’s revenue (52.4%) 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.