Omnicom reports 15 per cent drop in Q4 income

The group today reported a 15.3 per cent drop in its fourth-quarter net income, down from US$271 million in 2008 to $229.6 million last year. The group’s global revenue slid to $3.27 billion, a three per cent drop from the $3.34 billion it posted a year ago.

Omnicom’s fourth-quarter performance outside the US was more positive, with a 1.5 per cent increase in international revenue to $1.63 billion. Growth in China and India was cited as a factor in this result. But non-US revenue was worst hit in 2009 as a whole, down 14.3 per cent across the year compared with 10.3 per cent domestically.

Omnicom, which is home to agencies including BBDO and DDB, claimed a fall in automotive adspend was the greatest factor in its 2009 decline.

However, group chief executive, Randall Weisenburger, remained upbeat in a live conference call with international journalists. "While the economic challenges are not behind us and the results of businesses vary by business type and geography, we have begun to see optimistic signs of recovery and more widespread areas of stability," he said.

The figures were released on the day that French rival Havas reported slight fourth quarter recovery after a year that saw revenue in Asia-Pacific alone drop by 25 per cent.

Omnicom’s high-profile clients include Budweiser manufacturer Anheuser-Busch and McDonald’s.