Connect with us

Brexit

Omnicom says less clarity on fourth quarter due to #Brexit, US election

SHARE:

Published

10 years ago

on

We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. You can unsubscribe at any time.

5587-european-progress-microfinance-facility-strumento-ue-agevola-microcredito-350Omnicom Group Inc (OMC.N) on Tuesday (18 October) reported third-quarter earnings that narrowly beat estimates and said that it lacked clarity on its outlook for this quarter due to foreign currency pressures following Brexit and the U.S. presidential election, writes Malathi Nayak.

The New York City-based marketing and communications company has 'less visibility' heading into the fourth quarter, chief executive officer John Wren said on a call with analysts on Tuesday.

"This year is further complicated by the upcoming U.S. presidential election, the increasing likelihood that the Fed will raise rates before year-end, and the potential effects of Brexit," Wren said.

Shares in Omnicom, which have risen over 7% year-to-date, fell t2% to $81.34 after it announced results on Tuesday morning.

For the quarter ended 30 September, Omnicom reported a profit of $254 million or $1.06 per share, up from $239 mil, or 97 cents a year ago. Analysts polled by Thomson Reuters I/B/E/S were expecting earnings of $1.04 per share.

Revenue rose 2.3 % to $3.8 billion, in line with analysts' estimates. The negative impact of foreign exchange rates, especially the falling value of the British pound after Brexit, skimmed 1.3%of its revenue in the quarter, it said.

Wireless carrier AT&T Inc (T.N) said in August it had struck an advertising deal with Omnicom to let the firm handle its creative and media business.

Advertisement
Omnicom's other recent deals with clients such as Volkswagen Media and McDonald's "will not contribute to incremental revenue until January 2017", Chief Executive Officer Wren said.

Share this article:

Share this:
Related Topics:
Guest Contributor - Opinion

Opinions expressed are purely those of the author and not endorsed by EU Reporter. The article was unsolicited by EU Reporter, and the author guarantees the truthfulness of the contents of the article. No payment was made by EU Reporter to the author

EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter. Please see EU Reporter’s full Terms and Conditions of publication for more information EU Reporter embraces artificial intelligence as a tool to enhance journalistic quality, efficiency, and accessibility, while maintaining strict human editorial oversight, ethical standards, and transparency in all AI-assisted content. Please see EU Reporter’s full A.I. Policy for more information.
Advertisement

Trending