Post by account_disabled on Jan 9, 2024 7:08:49 GMT
The COVID-19 pandemic has had a significant impact on the global economy, the marketing and advertising sector and the results of operations, in this case those of Omnicom Group . The company just announced its results for the third quarter of 2020 and, unfortunately, they are not as expected . The efforts of public and health administrations to mitigate the impact of the pandemic include actions such as travel restrictions, limitations on public gatherings, confinements and mandatory closures. All of them have had a negative impact on many of the businesses, not only of Omnicom Group clients, but of companies throughout the world. Clients have reduced or plan to reduce their demand for the company's services and, as a result, have experienced a reduction in their income since the end of the first quarter of 2020, compared to the results of the same year in 2019. The reduction in its revenue continued during the second and third quarters of 2020 and is expected to continue for the rest of the year. The drop in revenue has been 11.5% reaching $3,206.5 million , compared to revenue of $3,623.8 million in the third quarter of 2019.
Components of the change in revenue included an increase in revenue due to the positive impact of foreign currency translation of 0.5%, a decrease in acquisition income, net of disposal income of 0.3% and a decrease Email Data in income from negative organic growth of 11.7% compared. to the third quarter of 2019. "While we expect the pandemic to substantially impact all of our customers, certain industry sectors have been affected more immediately and significantly than others, including travel, lodging and entertainment, energy and oil and gas. gas, non-essential retail and automobiles,” the company says. « Customers in these industries have already acted to reduce costs , including postponing or reducing marketing communications expenditures. While certain industries such as healthcare and pharmaceuticals, technology and telecommunications, financial services and consumer products have done relatively well to date, conditions are volatile and economic uncertainty affects all customers, industries and geographies," they add.
All of this means that the company expects demand for its services to decline as marketers reduce spending in the near term due to the pandemic's uncertain impact on the global economy. During the second quarter of 2020, they aligned their agency cost structures, which included severance and furlough actions to reduce workforce, right-of-use asset impairments and other real estate costs, a net loss on the disposition of certain subsidiaries and other charges. Organic growth in Q3 2020 compared to Q3 2019 across its five core disciplines was as follows: Advertising decreased 11.7% , CRM consumer experience decreased 19.3%, Execution and CRM support decreased 19.4%, public relations decreased 3.4% and Health increased 3.8%. Across all of its regional markets, organic growth in Q3 2020 compared to Q3 2019 was as follows: The United States decreased 11.4% , the rest of North America decreased 7.6% , the United Kingdom decreased by 12.5%, the rest of Europe decreased by 9.6%, Asia Pacific decreased by 12.8%, Latin America decreased by 22.3% and the Middle East and Africa decreased by 21.4% .
Components of the change in revenue included an increase in revenue due to the positive impact of foreign currency translation of 0.5%, a decrease in acquisition income, net of disposal income of 0.3% and a decrease Email Data in income from negative organic growth of 11.7% compared. to the third quarter of 2019. "While we expect the pandemic to substantially impact all of our customers, certain industry sectors have been affected more immediately and significantly than others, including travel, lodging and entertainment, energy and oil and gas. gas, non-essential retail and automobiles,” the company says. « Customers in these industries have already acted to reduce costs , including postponing or reducing marketing communications expenditures. While certain industries such as healthcare and pharmaceuticals, technology and telecommunications, financial services and consumer products have done relatively well to date, conditions are volatile and economic uncertainty affects all customers, industries and geographies," they add.
All of this means that the company expects demand for its services to decline as marketers reduce spending in the near term due to the pandemic's uncertain impact on the global economy. During the second quarter of 2020, they aligned their agency cost structures, which included severance and furlough actions to reduce workforce, right-of-use asset impairments and other real estate costs, a net loss on the disposition of certain subsidiaries and other charges. Organic growth in Q3 2020 compared to Q3 2019 across its five core disciplines was as follows: Advertising decreased 11.7% , CRM consumer experience decreased 19.3%, Execution and CRM support decreased 19.4%, public relations decreased 3.4% and Health increased 3.8%. Across all of its regional markets, organic growth in Q3 2020 compared to Q3 2019 was as follows: The United States decreased 11.4% , the rest of North America decreased 7.6% , the United Kingdom decreased by 12.5%, the rest of Europe decreased by 9.6%, Asia Pacific decreased by 12.8%, Latin America decreased by 22.3% and the Middle East and Africa decreased by 21.4% .