(Reuters) - U.S. advertising company Omnicom Group Inc beat Wall Street estimates for quarterly profit on Tuesday, as it benefited from higher client spending worldwide.
Omnicom posted a 2.5 percent rise in first-quarter organic revenue - a widely watched measure that excludes fluctuation in foreign exchange rates and mergers. Analysts on average had expected a 2.3 percent rise, according to research firm FactSet.
Traditional advertising companies such as Omnicom have been shifting focus to high-growth digital marketing through a host of acquisitions to compete better with the targeted advertising models of Facebook and Alphabet Inc’s Google.
Net income attributable to the company fell to $263.2 million in the quarter ended March 31, from $264.1 million a year earlier.
On a per share basis, the company earned $1.17 in the first quarter, compared with $1.14 a year earlier due to a lower share count.
Analysts on average had expected a profit of $1.09 per share, according to IBES data from Refinitiv.
Revenue fell 4.4 percent to $3.47 billion, slightly below analysts’ expectations of $3.5 billion.
Reporting by Akanksha Rana in Bengaluru; Editing by Maju Samuel