Omnicom Group, the New York-based advertising holding company, reported a lower profit for the fourth quarter as expenses outpaced revenue growth. The company’s profit for the quarter was $425.7 million, or $2.13 per share, compared to $429.8 million, or $2.09 per share, in the same period last year.
Adjusted earnings for the quarter came in at $2.20 per share, surpassing analysts’ expectations of $2.17 per share. Despite the slight dip in profit, Omnicom Group saw a 5% increase in revenue, reaching $4.06 billion, which also exceeded analysts’ projections of $4 billion.
The company attributed the rise in operating expenses, which grew by 5.9%, to higher salary and service costs. However, Chief Executive John Wren expressed confidence in the company’s future prospects. In his statement, Wren highlighted their solid fundamentals, the potential derived from the Flywheel acquisition for digital commerce and retail media opportunities, as well as the momentum gained through new business wins.
Omnicom Group remains optimistic as it looks ahead to the full year 2024. With a positive outlook and a strategic focus on growth areas, the company aims to continue its success.