Skip to main content
An evolving AI project from Mi3 | Automation with Editor curation. And oversight. Always.
In partnership with
MiQ Sigma
Posted 16/07/2025 10:57am

Image by DALL·E Pic: Midjourney

Editors' Note: Many Fast News images are stylised illustrations generated by Dall-E. Photorealism is not intended. View as early and evolving AI art!

hAIku

Revenue grows strong,
Costs rise with strategic moves,
Omnicom adapts.

In partnership with
MiQ Sigma

Omnicom reports 3% organic revenue growth, US$66m costs from pending IPG acquisition

Omnicom has reported 3 per cent organic growth in its second quarter results ending June 30, 2025 to hit US$4.015 billion in global revenue. Yet operating expenses took a hit, including $66m in cost relating to its pending acquisition of IPG, plus $88.8m in repositioning and efficiency initiatives.

According to the latest financials, revenue in the second quarter of 2025 increased US$161.8 million, or 4.2%, to $4.015bn. Worldwide revenue growth in the second quarter of 2025 compared to the second quarter of 2024 was led by the 3% increase in organic revenue to $116.8 million, while acquisition revenue, net of disposition revenue, increased revenue by $2.6 million, or 0.1%.

Organic growth in the second quarter of 2025 compared to the second quarter of 2024 was led by Media & Advertising (8.2%), followed by the smaller division of Precision Marketing (5.0%), Experiential (2.9%), and Execution & Support (1.5%). By contrast, declines were reported in Public Relations (9.3%), Healthcare (4.9%), and Branding & Retail Commerce (16.9%).

Omnicom's operating expenses increased $232.9 million, or 7%, to $3,576.4 million in the second quarter of 2025 compared to the second quarter of 2024. The big hits were $66 million in costs related to the pending acquisition of The Interpublic Group of Companies, plus $88.8 million of repositioning costs, primarily related to severance actions and efficiency initiatives within the Omnicom Advertising Group and the Omnicom Production Group. Operating expenses in the second quarter of 2024 included $57.8 million of repositioning costs, primarily related to severance.

Omnicom also reported third-party service costs increased $107.3 million, or 13.2%, to $918.4 million, primarily as a result of organic growth in its Media & Advertising and Precision Marketing disciplines. Third-party incidental costs increased $34.3 million, or 22.6%, to $186.4 million, primarily as a result of organic growth.

According to Madison and Wall, the double-digit increase in third-party service costs was likely aided by incremental growth from the 2023 acquisition of Flywheel but also driven much more by gains in principal-based trading operation. "The 13% increase in third-party service costs – a good proxy for the principal-based trading associated with Omnet that helps Omnicom’s media agency in particular – equated to 2.8% of the company’s revenue. In lieu of these activities, organic growth would have been approximately flat," Madison and Wall commentators noted.

The company's full year guidance for organic growth in a range of 2.5% to 4.5% was maintained.

Operating income decreased $71.1 million, or 13.9%, to $439.2 million in the second quarter of 2025 compared to the second quarter of 2024, and the related margin decreased to 10.9% from 13.2%.

John Wren, Chairman and Chief Executive Officer of Omnicom, commented on the results, stating, "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."

"Our continued investment in our innovative operating platform, Omni, is driving superior business outcomes for our clients while enhancing operational efficiency across our organisation. We also achieved a key milestone in our transformational acquisition of Interpublic, successfully clearing U.S. antitrust review and moving closer to an expected close later this year. 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."

Partner Content From MiQ

Want to know more about MiQ Sigma?

Search Mi3 Articles