Mumbai: Omnicom Group reported a strong start to the year, with first-quarter revenue rising sharply following the inclusion of Interpublic Group (IPG), even as integration-related costs placed pressure on margins.
For the quarter ended March 31, the New York-headquartered advertising major posted revenue of $6.2 billion, a significant jump from $3.6 billion in the corresponding period last year. The increase was largely driven by the consolidation of IPG’s business after the deal closed in November 2025, alongside gains from constant currency growth.
Core operations also delivered steady momentum, with revenue climbing 6.7 per cent to $5.6 billion. This was supported by organic growth of 3.9 per cent and a 2.7 per cent benefit from foreign exchange movements. Integrated media remained the company’s largest business line, contributing $2.9 billion and accounting for more than half of core revenue. Advertising services generated $943.4 million, while public relations, experiential, health and other segments contributed smaller shares.
Regionally, the United States continued to dominate performance, accounting for around 61 per cent of core revenue at $3.4 billion. Europe and the United Kingdom together made up over a fifth of revenues, while Asia Pacific contributed close to 9 per cent.
The expanded scale of operations, however, brought a corresponding rise in costs. Total operating expenses increased to $5.6 billion from $3.2 billion a year earlier, reflecting the addition of IPG’s cost base. Salary and service-related expenses rose to $4.6 billion, compared to $2.7 billion in the same quarter last year.
Despite the higher cost structure, operating income improved to $646.2 million, up by $193.6 million year-on-year. Ebita rose to $763.6 million from $474.4 million, while adjusted Ebita grew 69.5 per cent to $861.4 million. Margins, however, remained unchanged at 13.8 per cent, indicating the impact of integration expenses linked to the acquisition.
Revenue from dispositions and assets held for sale stood at $627.2 million during the quarter, adding to the overall topline.
“Our strong first quarter performance as the new Omnicom reflects our new integrated capabilities, core portfolio operations, and successful integration activities. With the largest global media platform, proprietary data and identity capabilities, and our AI-powered Omni platform in full operation, we are uniquely equipped to help clients address an increasingly fragmented and complex marketing environment,” said John Wren, Chairman and Chief Executive Officer, Omnicom.
“We are also on track to achieve substantial cost reduction synergies and $3.5 billion in share repurchases this year under our $5.0 billion authorisation,” he added.
