(Reuters) - Omnicom Group Inc (N:OMC), the world's second-largest advertising company, reported better-than-expected quarterly revenue, helped by improved growth in the United Kingdom and Europe.
New York-based Omnicom said organic revenue grew 8.1 percent in the UK and 8.2 percent in Europe, for the first quarter ended March 31.
Results of the company, whose international sales made up about 44 percent of the total revenue in 2016, allayed concerns about its growth abroad following UK's decision to leave the European Union.
However, Omnicom, owner of agencies such as BBDO Worldwide, TBWA Worldwide and Goodby Silverstein & Partners, said negative impact of foreign exchange rates reduced revenue in the quarter by 1.2 percent.
Omnicom, one of the 'big four' ad agencies, is being investigated by the U.S. Department of Justice along with fellow rivals such as Interpublic Group of Companies Inc (N:IPG) and Publicis Groupe SA (PA:PUBP) over rigged bids to favour in-house production units.
"A dominating element...is a macro environment that remains very uncertain in terms of geopolitical issues and fiscal policies in the United States," Pivotal research analyst Brian Wieser wrote in a pre-earnings note.
Top advertising companies worldwide are increasingly looking to boost presence in digital media, with print ads drying up.
Omnicom — which serves over 5,000 clients worldwide, including Procter & Gamble (N:PG), Cisco Systems Inc (O:CSCO) and McDonald's Corp (N:MCD) — said net income rose to $241.8 million (193.55 million pounds), or $1.02 per share, in the quarter, from $218.4 million, or 90 cents per share, a year earlier.
Excluding items, Omnicom earned 97 cents per share, beating the average analysts' estimate of 96 cents, according to Thomson Reuters I/B/E/S.
Revenue, for the company which is one of the "big four" ad agencies, rose 2.5 percent to $3.59 billion, beating estimates of $3.55 billion.