Advert agency Omnicom misses income estimates as financial uncertainty weighs

(Reuters) – Promoting agency Omnicom Group missed Wall Road estimates for first-quarter income on Tuesday, as an unsure financial setting weighed on a number of of its segments, sending its shares down 3.6% in buying and selling after the bell.

Omnicom witnessed declines in income progress throughout segments together with healthcare, public relations, branding and retail, within the quarter, countering a 7.2% rise within the media and promoting enterprise, the corporate’s largest.

The New York-based firm, which competes with UK’s WPP, is likely one of the world’s largest built-in promoting and communications corporations.

As companies rein in advert budgets amid geopolitical tensions and cussed inflation, the slowdown in consumer spending is weighing on income progress for main promoting corporations like Omnicom.

Omnicom’s income stood at $3.69 billion within the quarter ended March 31, in contrast with analysts’ common estimate of $3.72 billion, in response to information compiled by LSEG.

“We’re assessing the implications of financial and market occasions to find out how they’ll have an effect on our purchasers and enterprise for the rest of 2025,” CEO John Wren mentioned in a press release.

The corporate expects to shut its acquisition of Interpublic Group of Corporations within the second half of the 12 months, and sees the deal driving income progress and value synergies.

On an adjusted foundation, it earned $1.7 per share, in contrast with expectations of $1.62.

(Reporting by Priyanka.G in Bengaluru; Modifying by Maju Samuel)