* Fourth-quarter earnings $1.13/share vs est $1.09
* Revenue $3.94 bln vs est $3.93 bln
* Revenue in US rises 5.1 pct, intl revenue slips 0.3 pct
* Shares up 2.5 pct
By Sruthi Ramakrishnan
Feb 12 (Reuters) - Omnicom Group Inc, the largestU.S. advertising company and home to agencies such as BBDOWorldwide and DDB Worldwide, reported a better-than-expectedfourth-quarter profit on higher revenue in its domestic market.
Many of the macroeconomic problems cited by advertisingcompanies over the last few quarters, including instability inthe eurozone and a slowdown in China, have been easing.
Omnicom said it expects modest growth in 2013 but cautionedthat uncertainty in some markets would continue to put pressureon advertising spending.
"While the macroeconomic environment appears to bestabilizing and even improving in some areas, issues in severalmarkets remain unresolved," Chief Executive John Wren said on aconference call with analysts.
"We are cautiously optimistic as we look into the latterpart of 2013 and into 2014," he said.
Advertising companies had also been concerned about theimpact on advertising spending of the rancorous negotiationsover the U.S. fiscal cliff during the fourth quarter.
Omnicom, the first of the major advertising companies toreport results, said revenue in the United States rose 5 percentto $2.03 billion during the quarter, accounting for about halfof the total revenue.
"Surprisingly strong U.S. organic growth helped buoycontinued weakness in Euro markets," Jefferies analyst WillSmith wrote in a note.
Smith said Omnicom's strong U.S. revenue was a positive forWPP Plc, the world's No.1 advertising company, andInterpublic Group.
Omnicom shares, which have risen 18 percent in the lastthree months through Monday, rose as much as 2.5 percent to alife-high of $56.75.
WARY ON EUROPE
Omnicom said many markets in Europe remained weak and growthwas likely to be slow in the region for some time as governmentscontinue to operate with fiscal restraint.
"Our large European markets like Russia continued to performlargely well while the UK, France and Germany remained weak andin aggregate the euro zone markets were down 3.7 percent," ChiefFinancial Officer Randall Weisenburger said.
"Some of the revenue decline from the region could betracked to specific client reductions rather than the economicsituation," Wren said.
Total international revenue slipped 0.3 percent, weighed bythe weakness in Europe.
Net income rose to $307.1 million, or $1.13 per share, inthe quarter, from $271.9 million, or 96 cents per share, a yearearlier.
Revenue rose 2.4 percent to $3.94 billion.
Analysts had expected earnings of $1.09 per share on revenueof $3.93 billion, according to Thomson Reuters I/B/E/S.
WPP (WPP)
