The bottom did not fall out of U.S. ad spending in Q1, but overseas spending is still the prime driver behind Omnicom Group’s (OMC) Q1 results, which beat Wall Street estimates on revenue and earnings. Global revenue was up 12.5% to $3.2 billion, but that was driven by international, which rose 18.3% compared to domestic U.S. revenue, up 7.6%. Organic revenue, excluding currency fluctuations and acquisitions, was up 6.4%.
Notes from the Q1 conference call:
“Like most of our clients we remain cautious about the economy, but to date we have not seen any significant reduction in client spending, and non-U.S. growth remains strong,” said CEO John D. Wren, during his preamble.
Wren responding to a question on U.S. spending: “Car sales in North America not strong, but car sales around the world are strong. We have never been overexposed to financial services or the housing markets, so we have not participated in that decline. We are not suggesting we are immune. We’re just saying we haven’t seen the shift yet.”
Troubling news for NBC U, which is broadcasting the Olympics. Asked if clients were nervous about protests around the 2008 Summer Games, Wren admitted it has become an issue: “All clients we service have plans and concerns aboutt current activity. Everybody is a bit concerned and we will see what happens.”
Earlier: Omnicom Q1: No Ad Recession Yet
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