Omnicom Group has reported its financial results for the first quarter of 2025, posting a revenue of US$3.7 billion (A$5.8 million) and an organic growth rate of 3.4%, as the advertising group nears the expected closure of the IPG merger in the second half of 2025.

The positive topline figure was countered by a near 10% fall in net income to $287.7 million, with diluted net income per share down by $0.14, or 8.8%, to $1.45. However, the non-GAAP adjusted net income per share - diluted increased by $0.03, or 1.8%, to $1.70.

EBITA, meanwhile, decreased by $26.0 million, or 5.2%, to $474.4 million, with the margin decreasing to 12.9% from 13.8%. Adjusted EBITA increased by $7.8 million, or 1.6%, to $508.2 million, with the margin remaining at 13.8%.

Chairman and CEO John Wren said the company was currently "assessing the implications of economic and market events to determine how they will affect our clients and business for the remainder of 2025".

"While uncertainty has increased, one thing hasn’t changed and will always be true – Omnicom is a trusted partner for our clients, offering strategic advice to grow their sales while delivering flexibility, value and performance," he said.

The company’s net income for the quarter was $287.7 million, with diluted earnings per share at $1.45. The non-GAAP adjusted figure for earnings per share was reported at $1.70.

Operating income for the quarter stood at $452.6 million, with a non-GAAP adjusted EBITA of $508.2 million and a margin of 13.8%. Revenue increased by $59.9 million, or 1.6%, compared to the first quarter of 2024. Organic revenue growth contributed $121.9 million, or 3.4%, while acquisition revenue, net of disposition revenue, reduced revenue by $2.8 million, or 0.1%. Foreign currency translation had a negative impact, reducing revenue by $59.2 million, or 1.6%.

Media & Advertising was the company's strongest segment, lifting 7.2%, with Precision Marketing business also up by 5.8%, and Execution & Support growing 1.9%. However, there were declines in Public Relations (-4.5%), Healthcare (-3.2%), Experiential (-1.5%), and Branding & Retail Commerce (-10.0%).

Regionally, organic growth was led by Latin America at 14.8%, followed by Asia Pacific at 6.0% and the United States at 4.6%. Euro Markets & Other Europe saw a modest increase of 1.7%. Declines were noted in Other North America (-3.6%), the United Kingdom (-0.7%), and the Middle East & Africa (-9.3%).

Operating expenses rose by $86.2 million, or 2.7%, reaching $3,237.8 million. Included in these expenses were $33.8 million of costs related to the pending acquisition IPG. Salary and service costs increased by $53.7 million, or 2.0%, to $2,746.3 million. Third-party service costs rose by $98.6 million, or 14.1%, to $796.8 million, and third-party incidental costs increased by $21.9 million, or 14.9%, to $169.0 million. SG&A expenses increased by $32.6 million, or 38.2%, to $117.9 million, including acquisition-related costs.

Operating income decreased by $26.3 million, or 5.5%, to $452.6 million, with the margin decreasing to 12.3% from 13.2%. Net interest expense increased by $2.6 million to $29.4 million, and the effective tax rate rose to 28.5% from 25.7% in the first quarter of 2024.

Omnicom is anticipating the closing of the Interpublic acquisition in the second half of 2025, which is expected to provide "substantial opportunities for revenue growth and cost synergy potential" per Wren.

"I am confident that our diversified portfolio and strong balance sheet, together with our experienced leadership teams, will allow us to navigate this challenging economic environment. We are also very excited about the expected closing of the Interpublic acquisition in the second half of this year. It will give the combined company substantial opportunities for revenue growth and distinctive cost synergy potential to drive increased profitability, EPS growth, and free cash flow," he said.