(Reuters) – U.S. advertising company Omnicom Group Inc beat Wall Street estimates for fourth-quarter profit on Tuesday as higher advertisement spending by businesses in Europe offset the impact of a strong dollar.
Omnicom also posted a 3.2 percent rise in organic revenue – a keenly watched measure that excludes fluctuation in foreign exchange rates and mergers. Analysts on average had expected a 3.3 percent rise in organic revenue, according to research firm FactSet.
Counted among the world’s “Big Four” traditional ad companies, Omnicom faces competition from consulting firms such as Accenture Plc, IBM Corp and Deloitte, as well as internet giants like Alphabet Inc’s Google and Facebook Inc.
Organic revenue grew 5.7 percent in Europe, while the same growth was at 2.6 percent in the United States.
Net income available for common shares rose to $399.2 million, or $1.77 per share, in the quarter ended Dec. 31, from $254.1 million, or $1.09 per share, a year earlier.
Analysts on average had expected earnings of $1.66 per share, according to IBES data from Refinitiv.
Revenue fell 2.2 percent to $4.09 billion, marginally below analysts’ expectations of $4.1 billion.
Reporting by Munsif Vengattil in Bengaluru; Editing by James Emmanuel