Media lifts Omnicom’s earnings as PR, experiential slump

Omnicom Group has reported revenue of $4.0 billion for the third quarter of 2025, reflecting organic growth of 2.6 percent compared to the same period in 2024.

Net income reached 341.3 million dollars, while adjusted non-GAAP net income totaled 436.4 million dollars. Diluted earnings per share were 1.75 dollars, or 2.24 dollars on an adjusted basis.

John Wren, Chairman and Chief Executive Officer, Omnicom: "We expect to close the Interpublic acquisition next month, creating the world’s leading marketing and sales company. Together, we will emerge with the industry’s most talented team and a powerful platform designed to accelerate growth through strategic advantages in data, media, creativity, production, and technology. We’re already seeing strong momentum with significant new business wins across both companies, underscoring the compelling opportunities this acquisition creates. Our enhanced ability to deliver revenue growth, operate with greater efficiency, and generate healthy free cash flow only strengthens our confidence in the future – for our clients, our people and for long-term shareholder value."

Revenue Performance

Revenue increased by 154.5 million dollars, or 4.0 percent, compared with the third quarter of 2024. Organic revenue grew 102.4 million dollars, or 2.6 percent, while foreign currency translation added 52.4 million dollars, or 1.4 percent.

By discipline, Media and Advertising rose 9.1 percent and Execution and Support grew 2.0 percent. Precision Marketing increased 0.8 percent, while Healthcare fell 1.9 percent, Public Relations dropped 7.5 percent, Experiential declined 17.7 percent, and Branding and Retail Commerce decreased 16.9 percent.

Regional Breakdown

Organic growth by region showed a 4.6 percent rise in the United States, 27.3 percent in Latin America, 3.7 percent in the United Kingdom, and 5.9 percent in the Middle East and Africa. These were offset by declines of 0.2 percent in Other North America, 3.7 percent in Asia Pacific, and 3.1 percent in Euro Markets and Other Europe.

Operating Costs and Income

Operating expenses rose 6.8 percent to 3.5 billion dollars, including 60.8 million dollars in acquisition-related costs for the pending Interpublic acquisition and 38.6 million dollars in repositioning costs, mainly related to severance.

Operating income decreased 11.7 percent to 530.1 million dollars, with the operating margin narrowing to 13.1 percent from 15.5 percent. Acquisition and repositioning costs reduced the margin by 2.4 percentage points. Adjusted EBITA rose 4.6 percent to 651.0 million dollars, representing a margin of 16.1 percent.

Earnings and Taxes

The company’s effective tax rate increased slightly to 27.2 percent, primarily due to non-deductible acquisition-related expenses. Net income declined 11.6 percent to 341.3 million dollars, while adjusted earnings per diluted share rose 10.3 percent to 2.24 dollars.

Omnicom continues to monitor global economic uncertainties, including geopolitical tensions, inflation, and supply chain disruptions. The company said it remains confident in its ability to align costs with client demand and maintain strong cash flow as it prepares to integrate Interpublic following the acquisition.

www.omnicomgroup.com

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