Feb 7 Omnicom Group Inc, the No. 1 U.S.
advertising company, reported lower-than-expected quarterly
revenue due to a strong dollar, following prominent political
events such as Brexit and the U.S. presidential election.
Revenue, for the company which is one of the "big four" ad
agencies, rose 2.1 percent to $4.24 billion, but missed
analysts' average estimate of $4.26 billion, according to
Thomson Reuters I/B/E/S.
New York-based Omnicom, whose clients include Apple Inc
, Procter & Gamble, McDonald's Corp and
Adidas, said negative impact of foreign exchange
rates reduced revenue in the fourth quarter by 1.8 percent.
The dollar had risen 6.8 percent against a basket of major
currencies in the quarter ended Dec. 31.
The company did not break up revenue by geography in its
quarterly report. However, according to Thomson Reuters data,
about 38 percent of Omnicom's total revenue in 2015 came from
outside the Americas region.
Omnicom said organic revenue in North America rose 0.6
percent in the latest quarter.
Subsidiaries of Omnicom and fellow competitor Publicis
Groupe SA were subpoenaed by the U.S. Department of
Justice in December, as part of an investigation whether ad
agencies had rigged bids to favor in-house production units.
Rival Interpublic Group of Cos Inc earlier in
December said that one of its domestic agencies had been
contacted by the DoJ as part of the investigation.
Advertising companies have been exploring new revenue
streams and are trying to keep up with clients' increasing
demand for video content.
The company's net income rose to $348.7 million, or $1.47 per
share, in the latest quarter, from $328.3 million, or $1.35 per
share, a year earlier.
Analysts' on average were expecting earnings of $1.44 per
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by
Shounak Dasgupta and Martina D'Couto)