(Reuters) - Omnicom Group (NYSE:OMC) beat Wall Street estimates for first-quarter profit and revenue on Tuesday, helped by solid demand for its advertising services amid major political and sports events.
The results come as macroeconomic conditions ease and events such as the U.S. presidential election and the summer Olympics, beginning in July, are set to dial up advertisement and marketing spending.
Omnicom, which competes with The Interpublic Group of Companies (NYSE:IPG) and UK's WPP (LON:WPP), is one of the world's biggest integrated advertising and communications firms with more than 5,000 customers.
On an adjusted basis, the company earned $1.67 per share, compared with expectations of $1.55, according to LSEG data.
Omnicom's revenue stood at $3.63 billion in the quarter ended March 31, compared with analysts' estimate of $3.61 billion.
Ad agency Magna Global expects a 9% increase in U.S. ad spending in 2024, reaching $369 billion, with a projected surge of over 13% in political ad expenditure.
Omnicom is one of the six global advertising companies taking part in an early beta test of Walt Disney (NYSE:DIS)'s new advertising tool that seeks to harness artificial intelligence.