Omnicom Media Group Opens Hearts & Science in MENA

Dubai second office outside North America for data-driven marketing network

Dubai, 25/10/2016Omnicom Media Group, the media services division of Omnicom Group Inc., today announced the  MENA launch of  its third agency network, Hearts & Science. The office in Dubai is the second operation outside North America for the data-driven marketing agency, which launched six months ago in New York and already counts the two largest US advertisers as clients. 

In order to respond to marketers seeking business advantage in a world of personalized digital marketing, Hearts & Science has been designed to inform brand strategies with real-time data-led insights. It combines expert media planning and buying capabilities with a full range of services that include shopper marketing, marketing innovation and content activation.  

The new office will be led by Fadi Maktabi, who has been promoted to general manager of Hearts & Science MENA. He was previously the head of strategy at OMD UAE, where he successfully drove the agency’s business and product development. Hearts & Science Global CEO Scott Hagedorn commented: “It’s terrific to see the tremendous momentum continuing unabated with the expansion in the Middle East. Fadi has an impressive track-record and expertise in insights, strategy and innovation, a strong platform on which he can build to leverage that momentum and experience the success Hearts & Science has witnessed in other markets.”

Staffing for Hearts & Science MENA is underway, with a team of 16 expected to be in place in the coming months. The new office will initially be located in the Omnicom Media Group MENA building in the Dubai Media City.

“All the signs indicate that the region is not only ready for but also aspiring to work with an agency providing the full spectrum of innovation in data-driven audience definition, media placement, content optimization and shopper activation to create more value for brands,” said Omnicom Media Group MENA CEO Elie Khouri. “Hearts & Science will transform the market by redefining the standard for precision and performance.”

-ENDS-

Editor’s notes

About Omnicom Media Group MENA:

Omnicom Media Group MENA is the holding of OMD, PHD and Resolution in the Middle East. Omnicom Media Group is the media services division of Omnicom Group, Inc. (NYSE: OMC). Omnicom is a leading global advertising, marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries. Omnicom Media Group also includes a number of specialty media communications companies, including Accuen and Annalect. Consistently named one of the UAE’s best employers since 2012, ranking third in 2014, 2015 and 2016, the Group has also been recognized by the Great Place to Work Institute as Asia’s second best multinational workplace in 2016. Omnicom Media Group MENA was ranked among the top 5 at the Arabia CSR Awards 2013 in the medium-sized businesses category, and the company reports its sustainability activities in accordance with the GRI G4 Guidelines. Its first report was awarded ‘Best First Time Sustainability Report in Asia’ at the 2015 Asia Sustainability Reporting Awards.

FOR MORE DETAILS, CONTACT:

Mr Eric Mirabel                                                        

Regional Executive Director-Marketing, Omnicom Media Group MENA

Tel: +971 4 450 0484 . E-mail: [email protected]

Omnicom Media Group Officially Launches its Third Agency Network in Puerto Rico: Hearts & Science

Puerto Rico, October, 2016. Omnicom Media Group, the media services division of Omnicom Group Inc. (NYSE: OMC) announced the launch of its third agency network in Puerto Rico: Hearts & Science (H&S). 

Hearts & Science has been inspired by marketers seeking business advantage in a world of personalized digital marketing, where CRM (Customer Relationship Management) and addressable channels converge, and decisions must be made in real time to aggregate effective reach and deliver the right message at the right time. Designed to inform brand strategies with real-time insights, Hearts & Science is a data-driven marketing agency with expert media planning and buying capabilities, among other services that include shopper marketing, marketing innovation and content activation.

“With the addition of Hearts & Science, Omnicom Media Group has three distinct agency brands all focused on driving client business results,” says Daryl Simm, CEO, Omnicom Media Group. “OMD is the world’s largest and most creatively awarded media agency; PHD is the global leader in communications planning; Hearts & Science will be highly focused on data driven marketing. All three agency networks benefit from the full scale of Omnicom Media Group’s activation and buying resources and our industry-leading Annalect data and analytics platform.”

Hearts & Science opened its North America based operation in April with Procter & Gamble as its inaugural client, and Scott Hagedorn as its CEO. Hagedorn takes the helm at Hearts & Science following five years as the founding CEO of Annalect. While leading the effort to integrate data across multiple Omnicom network agencies, Hagedorn began crafting the vision for Hearts & Science, an enterprise that he describes as “the nexus between marketing science and consumer connections”.

The new agency in Puerto Rico is Heart & Science’s first office in Latin America, and following this launch, there will be other openings in other countries in the region. In reference to the launch of the new agency, Julian Porras, the CEO of Omnicom Media Group Latin America, affirms: “With this launch, Omnicom Media Group takes an important step forward in the continuous evolution of their strategic framework for the specialized mass media agency at a worldwide level. In Puerto Rico, the agency counts on the leadership of Andres Claudio, a professional veteran of mass media, who counts on a noteworthy history in McCann-Erickson, Grey, and most recently, Nielsen.”

In speaking of his main objectives in Hearts & Science Puerto Rico, Andres Claudio confirms: “It is a great challenge to lead a new model for an agency geared in marketing with the ultimate goal of providing the perfect balance between the strategic planning of focusing on data and the emotional connections of the consumer and their behaviors. H&S sets sail in the local market with the purpose of offering services to Procter & Gamble as their inaugural client with the commitment of elevating the traditional rhetoric of post-purchase and the strategies attached to stationary plans, to a vision of real time connections in all channels of contact. All of this is without a doubt a very interesting challenge.” 

Contact:
Laura Reyes
[email protected]

Omnicom Group Reports Third Quarter and Year-to-Date 2016 Results

NEW YORK, Oct. 18, 2016 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that its diluted net income per common share for the third quarter of 2016 increased nine cents, or 9.3%, to $1.06 per share versus $0.97 per share for the third quarter of 2015.  

Omnicom’s worldwide revenue in the third quarter of 2016 increased 2.3% to $3,791.1 million from $3,706.6 million in the third quarter of 2015.  The components of the change in revenue included an increase in revenue from organic growth of 3.2%, an increase in revenue from acquisitions, net of dispositions of 0.4% and a decrease in revenue from the negative impact of foreign exchange rates of 1.3% when compared to the third quarter of 2015.  

Across our regional markets, organic revenue growth in the third quarter of 2016 was 1.7% in North America, 5.2% in the United Kingdom, 2.0% in the Euro Markets and Other Europe, 8.0% in Asia Pacific, 11.9% in Latin America and 15.6% in the Middle East and Africa when compared to the same quarter of 2015.

The change in organic revenue in the third quarter of 2016 as compared to the third quarter of 2015 in our four fundamental disciplines was as follows: advertising increased 3.6%, CRM increased 1.6%, public relations increased 4.4% and specialty communications increased 6.2%.

Operating income in the third quarter of 2016 increased $24.8 million, or 5.8%, to $453.1 million from $428.3 million in the third quarter of 2015.  Our operating margin for the third quarter of 2016 increased to 12.0% versus 11.6% for the third quarter of 2015. 

For the third quarter of 2016, earnings before interest, taxes and amortization of intangibles (“EBITA”) increased $27.4 million, or 6.0%, to $482.1 million from $454.7 million in the third quarter of 2015.  Our EBITA margin (defined as EBITA divided by revenue) increased to 12.7% for the third quarter of 2016 versus 12.3% in the third quarter of 2015.  

For the third quarter of 2016, our income tax rate was 32.7% compared to 32.8% for the same period in 2015.

Net income for the third quarter of 2016 increased $14.5 million, or 6.1%, to $253.8 million from $239.3 million in the third quarter of 2015.  

Year-to-date

Diluted net income per common share for the nine months ended September 30, 2016 increased 25 cents, or 8.2%, to $3.31 per share compared to $3.06 per share for the nine months ended September 30, 2015.    

Worldwide revenue for the nine months ended September 30, 2016 increased 1.8% to $11,175.1 million from $10,981.1 million in the same period of 2015.  The components of the change in revenue included an increase in revenue from organic growth of 3.4%, an increase in revenue from acquisitions, net of dispositions of 0.3% and a decrease in revenue from the negative impact of foreign exchange rates of 1.9% when compared to the same period of 2015.  

Across our regional markets for the nine months ended September 30, 2016, organic revenue growth was 3.1% in North America, 3.6% in the United Kingdom, 3.1% in the Euro Markets and Other Europe, 5.9% in Asia Pacific, 1.4% in Latin America and 5.1% in the Middle East and Africa when compared to the same period of 2015.

The change in organic revenue for the nine months ended September 30, 2016 compared to the same period in 2015 in our four fundamental disciplines was as follows: advertising increased 6.4%, public relations increased 1.2% and specialty communications increased 4.3%, while CRM decreased 0.6%.

Operating income for the nine months ended September 30, 2016 increased $62.4 million, or 4.6%, to $1,407.0 million compared to $1,344.6 million for the same period in 2015.  Our operating margin for the nine months ended September 30, 2016 increased to 12.6% versus 12.2% for the same period in 2015.

Omnicom’s EBITA for the nine months ended September 30, 2016 increased 4.7%, or $67.3 million, to $1,492.7 million from $1,425.4 million for the same period in 2015. Our EBITA margin for the nine months ended September 30, 2016 increased to 13.4% versus 13.0% for the same period in 2015. 

For the nine months ended September 30, 2016, our income tax rate was 32.6% compared to 32.8% for the same period in 2015. 

Net income for the nine months ended September 30, 2016 increased $36.0 million, or 4.7%, to $798.3 million from $762.3 million versus the same period in 2015.  

Non-GAAP Financial Measures

We used certain non-GAAP financial measures in describing our performance above. We use EBITA (defined as earnings before interest, taxes and amortization of intangibles) and EBITA margin (defined as EBITA divided by revenue) as additional operating performance measures, which excludes the non-cash amortization expense of intangible assets (primarily consisting of amortization arising from acquisitions), because we believe it is a useful measure for investors to evaluate the performance of our businesses. The financial tables at the end of this document reconcile EBITA to the GAAP financial measure of net income for the periods presented.  

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies.

Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company.  Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.  Follow us on Twitter for the latest news. 

For a live webcast or a replay of our third quarter earnings conference call, go to https://investor.omnicomgroup.com/investor-relations/news-events-and-filings.

 

 

Omnicom Group Inc. 

Consolidated Statements of Income 

Three Months Ended September 30 

(Unaudited) 

(Dollars in Millions, Except Per Share Data) 

 
   

2016

 

2015

 
           

Revenue

 

$     3,791.1

 

$     3,706.6

 

Operating Expenses:

         

Salary and service costs

 

2,855.3

 

2,799.8

 

Occupancy and other costs

 

305.5

 

303.0

 

  Costs of services

 

3,160.8

 

3,102.8

 

Selling, general and administrative expenses

 

104.1

 

103.7

 

Depreciation and amortization

 

73.1

 

71.8

 

Total operating expenses

 

3,338.0

 

3,278.3

 

Operating Income

 

453.1

 

428.3

 

Add back: Amortization of intangibles

 

29.0

 

26.4

 

EBITA (a)

 

482.1

 

454.7

 

Amortization of intangibles

 

29.0

 

26.4

 

Operating Income

 

453.1

 

428.3

 

Net Interest Expense

 

42.0

 

35.9

 

Income before income taxes

 

411.1

 

392.4

 

Income tax expense

 

134.3

 

128.9

 

Income from equity method investments

 

1.4

 

3.2

 

Net income

 

278.2

 

266.7

 

Less: Net income allocated to noncontrolling interests

 

24.4

 

27.4

 

Net income –  Omnicom Group Inc.

 

253.8

 

239.3

 

Less: Net income allocated to participating securities

 

1.2

 

2.5

 

Net income available for common shares

 

$        252.6

 

$        236.8

 
           

Net income per common share  –  Omnicom Group Inc.

         

Basic

 

$          1.06

 

$          0.97

 

Diluted

 

$          1.06

 

$          0.97

 
           

Weighted average shares (in millions)

         

Basic

 

237.4

 

243.2

 

Diluted

 

238.7

 

244.4

 
           

Dividend declared per common share

 

$          0.55

 

$          0.50

 
 

(a)       EBITA (defined as earnings before interest, taxes and amortization of intangibles) is a non-GAAP financial measure.  We use EBITA as an additional operating performance measure, which excludes the non-cash amortization expense of intangible assets (primarily consisting of amortization arising from acquisitions), because we believe it is a useful measure for investors to evaluate the performance of our businesses. The above table reconciles EBITA to the GAAP financial measures for the periods presented.  Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies.

 

 

Omnicom Group Inc. 

Consolidated Statements of Income 

Nine Months Ended September 30 

(Unaudited) 

(Dollars in Millions, Except Per Share Data)

 
   

2016

 

2015

         

Revenue

 

$   11,175.1

 

$   10,981.1

Operating expenses:

       

Salary and service costs

 

8,304.5

 

8,159.8

Occupancy and other costs

 

920.2

 

942.0

  Cost of services

 

9,224.7

 

9,101.8

Selling, general and administrative expenses

 

323.1

 

316.0

Depreciation and amortization

 

220.3

 

218.7

Total operating expenses

 

9,768.1

 

9,636.5

Operating Income

 

1,407.0

 

1,344.6

Add back: Amortization of intangibles

 

85.7

 

80.8

EBITA (a)

 

1,492.7

 

1,425.4

Amortization of intangibles

 

85.7

 

80.8

Operating Income

 

1,407.0

 

1,344.6

Net Interest Expense

 

127.0

 

104.7

Income before income taxes

 

1,280.0

 

1,239.9

Income tax expense

 

417.7

 

406.9

Income from equity method investments

 

4.0

 

6.2

Net income

 

866.3

 

839.2

Less: Net income allocated to noncontrolling interests

 

68.0

 

76.9

Net income –  Omnicom Group Inc.

 

798.3

 

762.3

Less: Net income allocated to participating securities

 

4.8

 

9.0

Net income available for common shares

 

$        793.5

 

$        753.3

         

Net income per common share  –  Omnicom Group Inc.

       

Basic

 

$          3.33

 

$          3.08

Diluted

 

$          3.31

 

$          3.06

         

Weighted average shares (in millions)

       

Basic

 

238.4

 

244.7

Diluted

 

239.6

 

245.8

         

Dividend declared per common share

 

$          1.60

 

$          1.50

 

(a)       EBITA (defined as earnings before interest, taxes and amortization of intangibles) is a non-GAAP financial measure.  We use EBITA as an additional operating performance measure, which excludes the non-cash amortization expense of intangible assets (primarily consisting of amortization arising from acquisitions), because we believe it is a useful measure for investors to evaluate the performance of our businesses. The above table reconciles EBITA to the GAAP financial measures for the periods presented.  Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP. Non-GAAP financial measures reported by us may not be comparable to similarly titled amounts reported by other companies.

Omnicom Group Schedules Third Quarter 2016 Earnings Release and Conference Call

Omnicom Group Schedules Third Quarter 2016 Earnings Release and Conference Call

NEW YORK, Oct. 11, 2016 /PRNewswire/ — Omnicom Group (NYSE: OMC) will publish its third quarter 2016 results on Tuesday, October 18, 2016.  The company will host a conference call to review third quarter results on Tuesday, October 18, 2016 at 8:30 AM (EDT).  The dial-in numbers for the conference call are (800) 230-1085 (domestic) and (612) 234-9960 (international).  In addition, the conference call will be simulcast and archived at https://investor.omnicomgroup.com/investor-relations/news-events-and-filings

About Omnicom Group Inc.
Omnicom Group (www.omnicomgroup.com) is a leading global marketing and corporate communications company.  Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries. Follow us on Twitter for the latest news.

CONTACT: Investor Relations: Shub Mukherjee, 212-415-3011, [email protected]; Media: Joanne Trout, 212-415-3669, [email protected]

Interbrand Releases 2016 Best Global Brands Report: Apple and Google Hold the Top Two Spots, Tesla and Dior Join the List

NEW YORK–(BUSINESS WIRE)– Leading brand consultancy, Interbrand, named Apple, Google and Coca-Cola the three most valuable brands in its 2016 Best Global Brands report, with automotive and technology brands dominating the ranking—and Tesla and Dior entering the Top 100 brands. Now in its 17th year, the report reveals the Anatomy of Growth, and features an insider’s view of how great brands grow great businesses.

“It’s clear the best global brands are not just weathering change, but driving it,” says Jez Frampton, Interbrand’s Global Chief Executive Officer. “They understand their Anatomy of Growth is complex, unique and personal; they look inward and outward, expand into new markets, and create better experiences to grow their brands and businesses.”

For the fourth year in a row, Apple and Google claimed the top positions. Apple’s brand value grew by 5 percent to USD $178,119m, while Google’s brand value rose 11 percent to USD $133,252m. Coca-Cola, Microsoft, Toyota, IBM, Samsung, Amazon, Mercedes-Benz and GE round out the Top 10. Dior and Tesla enter the Best Global Brands report for the first time, at #89 and #100 respectively.

The world’s five Top Growing Brands include Facebook (48 percent growth), Amazon (33 percent), LEGO (25 percent), Nissan (22 percent) and Adobe (21 percent).

With a combined 29 positions, automotive and technology brands dominate this year’s report. Retail is the Top Growing Sector, increasing 19 percent, followed by the sporting and luxury sectors—each experiencing a 10 percent increase.

The Top 100 brands have a combined total value of USD $1,796,384m, an increase of 4.8% from 2015. For the complete Top 100 ranking and the report with comprehensive analysis of growth, sector and industry trends, visit www.bestglobalbrands.com.

Methodology

Interbrand’s 17th annual report analyzes how brands help grow businesses—from delivering on customer expectations to driving economic value. This methodology was the first brand valuation method to become ISO certified. The ranking is based on three key components that contribute to a brand’s cumulative value: The financial performance of the branded products and services The role the brand plays in influencing customer choice The strength the brand has to command a premium price or secure earnings for the company

About Interbrand

At Interbrand, we believe that growth is achieved when an organization has a clear strategy and delivers exceptional customer experiences. We do both, through a combination of strategy, creativity, and technology that helps drive growth for our clients’ brands and businesses. With a network of 29 offices in 22 countries, Interbrand is a global brand agency, and publisher of the highly influential annual Best Global Brands and Breakthrough Brands reports, and Webby Award-winning brandchannel. Interbrand is part of the Omnicom Group Inc. (NYSE:OMC) network of agencies.

View source version on businesswire.com: https://www.businesswire.com/news/home/20161004006720/en/

Source: Interbrand

For more information: Interbrand Paola Norambuena, 1-212-798-7590 Chief Content Officer [email protected]

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