AD Agencies
Omnicom posts $6.2 bn Q1 revenue, EBITDA margin rises to 14.8 per cent
AI push and cost synergies lift margins in first full quarter post-merger
NEW YORK: Omnicom has reported a robust first quarter following its acquisition of Interpublic Group, signalling early gains from integration, cost efficiencies and a sharper focus on AI-led services.
The results mark the first full quarter with Interpublic’s operations included, offering a clearer view of how the combined entity is shaping up. Revenue from core operations stood at $5.6 billion, up $345 million year on year on a combined basis, while organic growth came in at 3.9 per cent. Adjusted EBITDA margin rose sharply by 240 basis points to 14.8 per cent, reflecting early synergy benefits.
“We’ve seen momentum and cohesive growth across the organisation,” said Omnicom chief executive officer John Wren. “Our results demonstrate the benefits of realigning our portfolio and moving decisively on integration.”
A key part of that realignment involves shedding underperforming assets. Omnicom has identified businesses worth roughly $3.2 billion in annual revenue for disposal, with about $1 billion already exited in the first quarter. The company expects to complete most of the remaining divestments over the coming quarters, sharpening its focus on higher-growth, higher-margin operations.
On the bottom line, adjusted earnings per share rose 11.8 per cent to $1.90, underlining the financial impact of cost discipline and integration. The company is targeting $900 million in cost synergies by 2026, rising to $1.5 billion by mid-2028.
“We are realising significant cost reduction synergies while continuing to invest for growth,” said Omnicom chief financial officer Philip Angelastro.
Beyond the numbers, the strategic pivot is becoming clearer. Omnicom has restructured its business around “core operations”, stripping out assets earmarked for sale to highlight the segments driving future growth. More than half of its revenue now comes from integrated media, which includes data, commerce, CRM and content automation, areas that are growing faster than traditional advertising.
Indeed, integrated media led growth in the quarter with high single-digit gains, while PR and experiential businesses delivered mid-single-digit growth. Healthcare posted modest gains, while traditional advertising lagged, reflecting a broader industry shift towards performance-driven and tech-enabled marketing.
Central to this transformation is Omni, the company’s AI-powered marketing and sales platform. Rolled out across the organisation during the quarter, the system connects data, talent and services while enabling AI-driven workflows.
The platform is already delivering tangible results, improving media performance, speeding up campaign execution and enhancing measurement capabilities. Integration with partners such as Adobe and Amazon is further expanding its reach.
“We’ve put the latest agentic AI tools in the hands of all our employees,” said Wren, highlighting the company’s push towards automation and data-led decision-making.
The shift is also reshaping client relationships. Omnicom reported new business wins with major brands including IBM, GSK and John Deere, while expanding engagements with existing clients such as Unilever and Exxon. Increasingly, clients are opting for consolidated partnerships, relying on a single provider for end-to-end marketing and sales services.
“There’s a clear trend of clients choosing one partner to manage most of their needs,” said John Wren. “Our integrated model makes that easier.”
Geographically, the US remains the largest market, contributing 61 per cent of revenue, followed by Europe and the UK at 21 per cent. Growth was strongest in the US, with other regions posting modest gains.
The balance sheet remains solid despite increased debt following the acquisition. Long-term debt stood at $10.2 billion at the end of the quarter, while liquidity was supported by $4.3 billion in cash and a $3.5 billion revolving credit facility. The company is also returning capital to shareholders, repurchasing $2.8 billion worth of shares in Q1 as part of a planned $5 billion buyback programme.
Looking ahead, Omnicom remains optimistic but cautious. While the company expects double-digit EPS growth for the year, it acknowledged ongoing geopolitical uncertainties, particularly in the Middle East, though the region accounts for less than 2.5 per cent of revenue.
The integration of Interpublic is still in its early stages, but the initial signs point to a business that is not just bigger, but structurally different. With AI at its core, a streamlined portfolio and a growing tilt towards integrated services, Omnicom is betting that scale, simplicity and smart technology will keep it ahead in an increasingly complex marketing landscape.
If the first quarter is anything to go by, that bet is already starting to pay off.
AD Agencies
Abhay Duggal joins JioStar as director of Hindi GEC ad sales
The streaming giant brings in a seasoned revenue hand as the battle for Hindi television advertising heats up
MUMBAI: Abhay Duggal has a new desk, and JioStar has a new weapon. The media and entertainment veteran has joined JioStar as director of entertainment ad sales for Hindi general entertainment channels, adding 17 years of hard-won revenue experience to one of India’s most powerful broadcasting operations.
Duggal is no stranger to big portfolios or bruising markets. Before joining JioStar, he spent a brief stint at Republic World as deputy general manager and north regional head for ad sales. Before that, he put in three years at Enterr10 Television, where he ran the north region for Dangal TV and Dangal 2, two of India’s leading free-to-air Hindi channels. The north alone accounted for more than 50 per cent of total channel revenue on his watch, a number that tends to get attention in any sales meeting.
His longest stint was at Zee Entertainment Enterprises, where he spent over six years rising to associate director of sales. There he commanded the Hindi movies cluster across seven channels, owned more than half of north India’s revenue across flagship properties including Zee TV and &TV, and closed marquee sponsorships across the Indian Premier League, Zee Rishtey Awards and Dance India Dance. He also handled monetisation for the English movies and entertainment cluster and the global news channel WION, a portfolio that would stretch most sales teams twice his size.
Earlier in his career Duggal closed what was then a Rs 3 crore single deal at Reliance Broadcast Network, one of the largest in Indian radio at the time, before that he helped launch and monetise JAINHITS, India’s first HITS-based cable and satellite platform.
His edge, by his own account, lies in marrying data and instinct: translating audience trends, inventory signals and client demands into long-term partnerships built on cost-per-rating-point discipline rather than short-term deal chasing. In a media landscape being reshaped by streaming, fragmented attention and AI-driven advertising, that kind of rigour is increasingly rare and increasingly valuable.
JioStar, which blends the scale of Reliance’s Jio platform with the content firepower of Star, is doubling down on its advertising business at precisely the moment the Hindi GEC market is getting more competitive. Bringing in someone who has spent nearly two decades doing exactly this, across some of India’s most watched channels, is a pointed statement of intent. Duggal has spent his career turning audiences into revenue. JioStar is clearly betting he can do it again, and bigger.
