Omnicom delivers on Q2 2025
Omnicom announced its results for the quarter ended 30 June 2025, on Wednesday, 16 July, delivering a revenue of $4.0bn with organic growth of 3.0% and net income of $257.6m and operating income of $439.2m.
Source: © Omnicom Group Omnicom Group The Omnicom Group announced its results for the quarter ended June 30 this week
John Wren, chairman and chief executive officer of Omnicom, says, “We delivered solid 3.0% organic revenue growth this quarter even in the face of ongoing macroeconomic and geopolitical uncertainty – underscoring once again the resilience and agility of our business.”
Wren adds that their continued investment in their innovative operating platform, Omni, is driving superior business outcomes for their clients while enhancing operational efficiency across the organisation.
“We also achieved a key milestone in our transformational acquisition of Interpublic, successfully clearing US antitrust review and moving closer to an expected close later this year. Wren expressed its optimism about the future.
“As we look ahead, I am more optimistic than ever about the significant growth opportunities this strategic transaction will create for our people, clients, and shareholders.”
Revenue increased
Revenue in the second quarter of 2025 increased $161.8mm, or 4.2%, to $4,015.6m.
Worldwide revenue growth in the second quarter of 2025 compared to the second quarter of 2024 was led by an increase in organic revenue of $116.8m or 3.0%.
Acquisition revenue, net of disposition revenue, increased revenue by $2.6m, or 0.1%. The impact of foreign currency translation increased revenue by $42.4m, or 1.1%.
Organic growth by discipline in the second quarter of 2025 compared to the second quarter of 2024 was as follows:
- 8.2% for Media & Advertising
- 5.0% for Precision Marketing
- 2.9% for Experiential
- 1.5% for Execution & Support.
This was partially offset by declines of 9.3% for Public Relations, 4.9% for Healthcare, and 16.9% for Branding & Retail Commerce.
Organic growth by region in the second quarter of 2025 compared to the second quarter of 2024 was as follows:
- 3.0% for the US
- 2.5% for Euro Markets & Other Europe
- 6.5% for Asia Pacific
- 18.0% for Latin America
- 2.4% for Other North America
- 0.9% for the Middle East & Africa
This was partially offset by a decline of 2.5% for the United Kingdom.
Expenses
Operating expenses increased $232.9m, or 7.0%, to $3,576.4m in the second quarter of 2025 compared to the second quarter of 2024.
Included in operating expenses in the second quarter of 2025 are $66m of costs related to the pending acquisition of The Interpublic Group of Companies, Inc. (IPG) and $88.8m of repositioning costs, primarily related to severance actions related to efficiency initiatives, primarily within the Omnicom Advertising Group and the Omnicom Production Group.
Operating expenses in the second quarter of 2024 included $57.8m of repositioning costs, primarily related to severance.
Salary and service costs increased $132.5m, or 4.7%, to $2,932.6m.
These costs tend to fluctuate with changes in revenue and are comprised of salary and related costs, which include employee compensation and benefits costs and freelance labour, third-party service costs, and third-party incidental costs.
Operating income
Operating income decreased $71.1m, or 13.9%, to $439.2m in the second quarter of 2025 compared to the second quarter of 2024, and the related margin decreased to 10.9% from 13.2%.
Acquisition-related costs and repositioning costs decreased operating margin by 3.9 percentage points in the second quarter of 2025 and repositioning costs decreased operating margin by 1.5 percentage points in the second quarter of 2024.
Interest expense, net
Net interest expense in the second quarter of 2025 decreased $1m to $40.7m compared to the second quarter of 2024. Interest expense decreased $0.1m to $62.6m.
Interest income increased $0.9m to $21.9m, primarily due to higher average cash balances.
Income taxes
Our effective tax rate for the second quarter of 2025 increased to 30.2% compared to 26.4% for the second quarter of 2024.
The effective tax rate for 2025 increased primarily due to the non-deductibility of certain acquisition-related costs in 2025.
Net income – Omnicom Group Inc. and diluted net income per share
Net income – Omnicom Group Inc. for the second quarter of 2025 decreased $70.5m, or 21.5%, to $257.6m compared to the second quarter of 2024.
Diluted shares outstanding for the second quarter of 2025 decreased 1.3% to 196.0m from 198.5m as a result of net share repurchases. Diluted net income per share of $1.31 decreased $0.34, or 20.6%, from $1.65.
EBITA
EBITA decreased $72.8m, or 13.7%, to $459.0m in the second quarter of 2025 compared to the second quarter of 2024, and the related margin decreased to 11.4% from 13.8%.
Risks and uncertainties
Global economic conditions and disruptions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, and central bank interest rate policies in countries that comprise its major markets.
Labour and supply chain issues affecting the distribution of its clients’ products, or a disruption in the credit markets could cause economic uncertainty and volatility.
The impact of these issues on its business will vary by geographic market and discipline.