Omnicom Group's revenue up
Omnicom Group's full-year revenue for 2011 was up 10.6% to $13.87 billion when compared with the prior year, and fourth-quarter revenue increased 7.4% to $3.85 billion, the company said in a Feb. 14 earnings statement.
Full-year advertising revenue jumped by 12.7% to $6.4 billion compared with 2010, while the company's fourth-quarter advertising revenue grew by 9.7% to $1.83 billion year-over-year. The company's Q4 revenue from CRM grew 8.2% to $1.39 billion, compared with Q4 of the previous year. For the full year, CRM revenue increased 11.4%, to $5.07 billion.
The company saw a decline in specialty marketing services revenue of 3.8% in Q4 compared with the same period in 2010, to $318.8 million. For the full year of 2011, the holding company generated $1.19 billion in revenue from specialty marketing, a 1.6% increase compared with the year before.
Omnicom's Q4 net income grew 10.3% to $271.9 million compared with the fourth quarter of 2010, and for the full year, net income was up 15.1% to $952.6 million. Operating income for Q4 grew 10.9% to $487.4 million year-over-year. Full-year operating income was up 14.4%, to $1.67 billion.
"We have generated very strong results throughout 2011 and we end the year extremely well-positioned for future growth," said John Wren, CEO of Omnicom, during an earnings call. He emphasized that the company will continue to invest in new talent at its agencies and that “all of our agencies must have strong digital capabilities to compete in the future.”
Wren emphasized that Omnicom would deepen its social and mobile investments.
"We are focused on taking advantage of the continued shift to more interconnected activities by consumers and businesses as they extend further into social and mobile platforms," Wren said. "We believe the world will become increasingly more complex and our partnership approach versus making bets on specific digital platforms will allow us to adapt our services to new technologies and will help us seamlessly integrate digital within our clients' overall marketing strategies."
The New York-based holding company owns and operates agency networks in the CRM, PR, advertising, and specialty communications industries, including DDB Worldwide, TBWA Worldwide, and BBDO.
The food and beverage sector remained Omnicom's largest vertical in Q4 of 2011, generating 13% of the holding company's revenue. But financial services saw a 34.9% growth year-over-year, making it Omnicom's second-largest sector, responsible for 12% of the company's revenue. The pharmaceutical and healthcare sector dropped 4.8% compared to last year, moving from the company's second-largest sector to its fourth-largest sector.