This marks the fifth consecutive quarter of organic growth for the company.
Omnicom reported that Q2 Organic growth grew by 11.3%, or $403.8 million year over year, which was down slightly from the 11.9% organic growth in Q1 of this year.
Q2 revenue was flat year over year at $3.5 billion, while the company’s operating margins were down slightly, decreasing to 15.2% from 15.9% the previous year.
“Overall, we are very pleased with our progress on our key strategic initiatives and our first half financial results,” CEO John Wren said in a call with investors.
“Our notable new partnerships and continued investments in high-growth areas position us extremely well to service our clients now and in the future.”
In the U.S. market, which accounts for more than half of Omnicom’s business, the holding company grew 10.7%. Europe grew 15.1%, the U.K. grew 12% while the Asia Pacific grew 4.7%, reflecting the impact of COVID-19 lockdowns in China.
“I think China is the exception, and we felt that probably most dearly in our executional businesses, where the shutdowns prevented us and prevented clients from having trade shows and other type of affairs, which are generally a part of our revenue,” said Wren.
“So shutdowns do affect those executional areas more than almost any other area.
Phil Angelastro, Chief Financial Officer, added: “Despite the headwinds in Experiential in Asia, the region saw strong results in Advertising & Media, brand consulting, and Healthcare.”
Looking ahead the company raised its organic growth forecast for 2022 to between 6.5% to 7%—that’s up from a projection of 6% to 6.5% issued in the previous quarter.
“We increased the guidance from — in each of the past two quarters,” said Wren. “Modestly, you could argue, given where we are for six months. And it is us just simply being cautious. We’re not ones to overextend ourselves.”
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