Omnicom’s TBWA Worldwide Takes Majority Stake in Lucky Generals Posted on February 22, 2017December 11, 2020 by Revanth Ravish London and New York, February 22, 2017 – TBWA Worldwide, an advertising agency collective and an Omnicom Group (NYSE: OMC) company, today announced the acquisition of a majority stake in leading independent UK creative agency Lucky Generals. Lucky Generals’ founders, Helen Calcraft, Andy Nairn and Danny Brooke-Taylor, will remain in their existing roles at Lucky Generals and will retain a significant minority share in the company. TBWA will form a new TBWA UK Group, which will consist of Lucky Generals and TBWA\London, upon the acquisition of Lucky Generals. Lucky Generals and TBWA\London will continue to operate as two separate brands within the new group. The structure exemplifies TBWA’s unique approach to developing a global advertising collective of connected, yet distinct, agencies. It has parallels with the group’s approach in Germany, where TBWA and HEIMAT successfully operate a similar two-pronged strategy. Troy Ruhanen, President and CEO of TBWA Worldwide said, “Lucky Generals’ vision, a creative company for people on a mission, is completely aligned with our own: a radically open creative collective. They are relentlessly creative and innovative, with a focus on disruptive work, platforms and businesses. What Helen, Andy, Danny and their teams have built in a short period of time is remarkable. I cannot think of a better addition to the family.” Helen Calcraft, founding partner of Lucky Generals, added “We have been fortunate enough to have had conversations with many international groups, but Omnicom and TBWA Worldwide were the only ones to understand our desire for autonomy — perhaps because entrepreneurialism, disruption and creativity are hardwired into their DNA. We already feel like we’ve established a great personal connection with the team. This deal will allow us to preserve our unique culture, build our brand and grow. Most important, with the support of Omnicom and TBWA, we will be able to better deliver on our clients’ needs in the UK and around the globe. We’re delighted to join such an entrepreneurial group and keep doing all the things we love, on a bigger scale, with some new friends.” The acquisition comes as Lucky Generals has experienced a period of substantial growth over the last two years. Founded in 2013, Lucky Generals has been shortlisted for Campaign’s Agency of the Year for the last two years. It was also named Marketing’s “New Thinking Agency of the Year” and The Drum’s “Ballsiest Agency of the Year.” Its clients include Amazon, Paddy Power Betfair, Hostelworld and Unilever. # # # About TBWA Worldwide TBWA is The Disruption® Company: the cultural engine for 21st century business. We use trademarked Disruption®methodologies to create a unique space in culture for our clients’ brands. We are a top 10 global advertising agency collective with 11,300 employees across 305 offices in 98 countries. TBWA brands include Auditoire, Digital Arts Network (DAN), eg+ worldwide, The Integer Group®, TBWA\Media Arts Lab and TBWA\WorldHealth. Global clients include adidas, Airbnb, Apple, Gatorade, Henkel, McDonald’s, Michelin, Nissan, Pernod Ricard, Merck, Standard Chartered Bank, Singapore Airlines and Vichy. About Omnicom Group Inc. 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. Contact Anaka Kobzev Global Head of Communications, TBWA Worldwide w. +1-212-804-1196 / m. +1-917-362-5845 [email protected]
Omnicom Media Group Agencies Top Gunn Report For Media Posted on February 16, 2017December 11, 2020 by Revanth Ravish OMD Worldwide Named Most Creative Media Agency Network for 11th Consecutive Ranking; PHD Jumps to Third, Scores Three Campaign Wins NEW YORK, Feb. 16, 2017 /PRNewswire/ — For the 11th consecutive time, Omnicom Media Group (OMG) agency OMD Worldwide has been named the world’s most creative media agency network by the Gunn Report for Media, maintaining the leadership position the agency has held at the top of the rankings since the report was launched in 2004. Joining the perennially first ranked network in the top five for the third consecutive year is sister OMG agency PHD Worldwide, continuing its upward momentum with a move into third place. The Gunn Report for Media is the industry standard for evaluating media creativity, ranking agencies according to their performance in the top industry awards shows around the world. Most importantly, it recognizes the vital role media agencies play in today’s highly competitive and fragmented communications landscape. The rankings reflect a point system based on awards won in more than 50 annual award competitions worldwide. With a combined 1108 points earned by its OMD (632) and PHD (476) networks, Omnicom Media Group earned the highest total points of any media holding group in the ranking. OMD’s Streak Remains Unbroken OMD’s 11th consecutive top ranking reflects the quality and consistency of work across the network combined with an exceptional Cannes Lions performance. At the 2016 festival, OMD was the most awarded agency network in the media category, earning a total of 11 media lions, including a Gold awarded to OMD Dominican Republic; two Silvers, one each awarded to OMD UK and OMD Dominican Republic; and a total of seven Bronze (two awarded to OMD UAE, two to OMD UK, and one each to OMD Italy, Sweden and US.) Additionally, OMD UK (in partnership with adam&eveDDB) was awarded the IPA Effectiveness Award Grand Prix for its work for John Lewis. “Even as media and marketing continue to evolve at the speed of digital and tech innovation, we can never forget that creativity and innovation must always remain a core part of our DNA and a given for all our 11,000 people working at OMD. This is the foundation that gives credibility to our promise to our clients and always a huge point of differentiation for OMD agencies around the world,” says Mainardo de Nardis, CEO of OMD Worldwide. “We are both proud and gratified to have that promise recognized for the 11th year in a row.” PHD Continues to Climb Returning to the top five for the third consecutive year, PHD jumped into third place this year, fueled by a strong showing at the 2016 Cannes Media Lions where the agency picked up four awards, including a Gold won by PHD New Zealand; a Silver awarded to PHD UK; and a Bronze awarded to both PHD Australia and India. Most notably, PHD agencies also accounted for three of the eight campaigns worldwide named in the Gunn Report as an Outstanding Media Campaign of 2016 (defined as a campaign that won media awards at four or more regional or global festivals.) With PHD New Zealand’s Brewtroleum campaign for DB Exports, PHD UK’s Gift of Reading Campaign for Sainsbury, and PHD Hong Kong’s Price of Living 2040 campaign for Manulife all earning Outstanding Media Campaign honors, PHD agencies delivered approximately 40 percent of the work recognized in this category. Mike Cooper, CEO of PHD WW said, “We continue to punch well above our network weight by being recognized as one of the most awarded networks in the world, in addition to six of our offices being cited as the most awarded globally and three campaigns out of eight being named ‘outstanding media campaigns’. Continuing to move up the ranks of the Gunn Report’s top five media networks is testament to PHD’s commitment to deliver ROI for clients through creativity and innovation”. Commenting on another year as the high scoring media holding group, Omnicom Media Group CEO Daryl Simm said, “There’s no better way to describe our success than this direct quote from the Gunn Report: when creative thinking combines with state-of-the-art data and analytics, the end result is award winning work that delivers results for our clients.” About Omnicom Media Group Omnicom Media Group (OMG) is the media services division of Omnicom Group Inc. (NYSE: OMC), the leading global advertising, marketing and corporate communications company, providing services to over 5,000 clients in more than 100 countries. Omnicom Media Group includes the full service networks OMD, PHD and Hearts &Science; the Annalect global data and analytics platform; the Accuen global programmatic buying platform; global performance marketing agency Resolution Media; as well as a number of specialty media communications companies.
Cone Communications Expands Global Reach and Award-Winning CSR, Consumer Practices by Becoming a Porter Novelli Company Posted on February 9, 2017December 11, 2020 by Revanth Ravish NEW YORK, Feb. 9, 2017 /PRNewswire/ — Cone Communications (Cone), a public relations and marketing agency specializing in corporate social responsibility (CSR) and consumer brand communications, is excited to announce that it will become a Porter Novelli company. This opportunity allows Cone to expand its international reach for its award-winning CSR strategy and thought leadership services by leveraging Porter Novelli’s 90 offices around the globe. It provides Cone with access to a deeper talent of agency resources within the 60 countries Porter Novelli operates. Cone will remain an independent brand within the Porter Novelli network, and continue as a specialty agency within the Omnicom Public Relations Group. Within the new framework, Bill Fleishman will continue in his current position as chief executive officer of Cone, reporting into Brad MacAfee, CEO of Porter Novelli. “We are continually creating ways to bring the strength and expertise of our agency network to bear for global clients,” said Karen van Bergen, CEO, Omnicom Public Relations Group. “A partnership between Cone Communications and Porter Novelli allows Cone to leverage its specialty capabilities in CSR, cause marketing and consumer activation across a respected global network – resulting in increased reach and value for our clients.” “For more than 35 years, Cone Communications has been devoted to Always Making a Difference for businesses, brands and society. The agency’s multi-dimensional approach to CSR has helped companies elevate responsible business practices and raise more than $1 billion for important social issues. In addition, we are recognized for exceptional brand and product campaigns for clients,” said Bill Fleishman, CEO, Cone. “We look forward to integrating our subject-matter expertise in CSR and consumer communications as a Porter Novelli company and bringing the value of bench strength around the world to our clients.” Both agencies were recently recognized as Top Places to Work in PR by PR News and the new alliance seeks to further each organization’s commitment to its talent through enhanced collaboration and further ability to build best-in-class account service teams. Cone and Porter Novelli are currently supporting several clients with integrated teams and specialists including T-Mobile USA, The Almond Board of California and Ortholite. Brad MacAfee, CEO of Porter Novelli, said, “We are thrilled to welcome the industry CSR leaders to help meet the growing demands of global clients. We are two organizations with a deep heritage in doing good for business and society. We believe that with Cone’s CSR expertise and Porter Novelli’s ability to change behavior through social impact campaigns, we can drive transformational change that brings great value and return for clients.” About Cone Communications Cone Communications (www.conecomm.com) is a public relations and marketing agency that is Always Making a Difference℠ for business, brands and society. With a unique combination of corporate responsibility, consumer brand and integrated marketing expertise, our people deliver emotional storytelling and business value for every client. Cone is part of the Omnicom Public Relations Group. About Porter Novelli Porter Novelli is a global public relations agency built on a rich heritage of marketing for social good. We’ve been motivating people to change deeply ingrained behaviors rooted in cultural and social norms for more than 40 years. Porter Novelli is a different kind of agency—and we recognize, respect and champion companies with the spirit, drive and tenacity to do things differently. We like taking on big challenges, and even bigger challengers, and we seek out clients who feel the same way—clients who have the conviction to tell their own story, and the courage to innovate from who they have been into who they know they can be. For additional information, please visit www.porternovelli.com. Porter Novelli is part of the Omnicom Public Relations Group. About Omnicom Public Relations Group Omnicom Public Relations Group is a global collective of three of the top global public relations agencies worldwide and specialist agencies in areas including public affairs, marketing to women, fashion, global health strategy and corporate social responsibility. It encompasses more than 6,000 public relations professionals in more than 330 offices worldwide who provide their expertise to companies, government agencies, NGOs and nonprofits across a wide range of industries. Omnicom Public Relations Group is part of the DAS Group of Companies, a division of Omnicom Group Inc. that includes more than 200 companies in a wide range of marketing disciplines including advertising, public relations, healthcare, customer relationship management, events, promotional marketing, branding and research.
Omnicom Group Reports Fourth Quarter and Full Year 2016 Results Posted on February 7, 2017December 11, 2020 by Revanth Ravish NEW YORK, Feb. 7, 2017 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that its diluted net income per common share for the fourth quarter of 2016 increased twelve cents, or 8.9%, to $1.47 per share versus $1.35 per share for the fourth quarter of 2015. Omnicom’s worldwide revenue in the fourth quarter of 2016 increased 2.1% to $4,241.8 million from $4,153.3 million in the fourth quarter of 2015. The components of the change in revenue included an increase in revenue from organic growth of 3.6%, 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 1.8% when compared to the fourth quarter of 2015. Across our regional markets, organic revenue growth in the fourth quarter of 2016 was 0.6% in North America, 8.5% in the United Kingdom, 6.2% in the Euro Markets and Other Europe, 9.5% in Asia Pacific and 29.0% in the Middle East and Africa, while organic revenue declined by 6.2% in Latin America when compared to the same quarter of 2015. The change in organic revenue in the fourth quarter of 2016 as compared to the fourth quarter of 2015 in our four fundamental disciplines was as follows: advertising increased 4.6%, CRM increased 0.4%, public relations increased 7.7% and specialty communications increased 5.7%. Operating profit in the fourth quarter of 2016 increased $26.4 million, or 4.6%, to $601.9 million from $575.5 million in the fourth quarter of 2015. Our operating margin for the fourth quarter of 2016 increased to 14.2% versus 13.9% for the fourth quarter of 2015. For the fourth quarter of 2016, earnings before interest, taxes and amortization of intangibles (“EBITA”) increased $27.4 million, or 4.5%, to $631.4 million from $604.0 million in the fourth quarter of 2015. Our EBITA margin (defined as EBITA divided by revenue) increased to 14.9% for the fourth quarter of 2016 versus 14.5% in the fourth quarter of 2015. For the fourth quarter of 2016, our income tax rate was 32.5% compared to 32.8% for the same period in 2015. Net income for the fourth quarter of 2016 increased $18.7 million, or 5.6%, to $350.3 million from $331.6 million in the fourth quarter of 2015. Year-to-date Diluted net income per common share for the twelve months ended December 31, 2016 increased 37 cents, or 8.4%, to $4.78 per share compared to $4.41 per share for the twelve months ended December 31, 2015. Worldwide revenue for the twelve months ended December 31, 2016 increased 1.9% to $15,416.9 million from $15,134.4 million in the same period of 2015. The components of the change in revenue included an increase in revenue from organic growth of 3.5%, 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 twelve months ended December 31, 2016, organic revenue growth was 2.4% in North America, 4.9% in the United Kingdom, 4.0% in the Euro Markets and Other Europe, 6.9% in Asia Pacific and 11.7% in the Middle East and Africa, while organic revenue declined by 0.8% in Latin America when compared to the same period of 2015. The change in organic revenue for the twelve months ended December 31, 2016 compared to the same period in 2015 in our four fundamental disciplines was as follows: advertising increased 5.9%, public relations increased 2.8% and specialty communications increased 4.6%, while CRM decreased 0.3%. Operating profit for the twelve months ended December 31, 2016 increased $88.8 million, or 4.6%, to $2,008.9 million compared to $1,920.1 million for the same period in 2015. Our operating margin for the twelve months ended December 31, 2016 increased to 13.0% versus 12.7% for the same period in 2015. Omnicom’s EBITA for the twelve months ended December 31, 2016 increased 4.7%, or $94.7 million, to $2,124.1 million from $2,029.4 million for the same period in 2015. Our EBITA margin for the twelve months ended December 31, 2016 increased to 13.8% versus 13.4% for the same period in 2015. For the twelve months ended December 31, 2016, our income tax rate was 32.6% compared to 32.8% for the same period in 2015. Net income for the twelve months ended December 31, 2016 increased $54.7 million, or 5.0%, to $1,148.6 million from $1,093.9 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 fourth 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 December 31 (Unaudited) (Dollars in Millions, Except Per Share Data) 2016 2015 Revenue $ 4,241.8 $ 4,153.3 Operating Expenses: Salary and service costs 3,148.7 3,089.0 Occupancy and other costs 297.8 300.7 Costs of services 3,446.5 3,389.7 Selling, general and administrative expenses 120.8 115.7 Depreciation and amortization 72.6 72.4 3,639.9 3,577.8 Operating Profit 601.9 575.5 Add back: Amortization of intangibles 29.5 28.5 EBITA (a) 631.4 604.0 Amortization of intangibles 29.5 28.5 Operating Profit 601.9 575.5 Net Interest Expense 40.2 36.8 Income before income taxes 561.7 538.7 Income tax expense 182.7 176.7 Income from equity method investments 1.4 2.2 Net income 380.4 364.2 Less: Net income allocated to noncontrolling interests 30.1 32.6 Net income – Omnicom Group Inc. 350.3 331.6 Less: Net income allocated to participating securities 1.6 3.3 Net income available for common shares $ 348.7 $ 328.3 Net income per common share – Omnicom Group Inc. Basic $ 1.47 $ 1.35 Diluted $ 1.47 $ 1.35 Weighted average shares (in millions) Basic 236.5 242.6 Diluted 237.8 243.8 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 Twelve Months Ended December 31 (Unaudited) (Dollars in Millions, Except Per Share Data) 2016 2015 Revenue $ 15,416.9 $ 15,134.4 Operating expenses: Salary and service costs 11,453.2 11,248.7 Occupancy and other costs 1,218.0 1,242.7 Cost of services 12,671.2 12,491.4 Selling, general and administrative expenses 443.9 431.8 Depreciation and amortization 292.9 291.1 13,408.0 13,214.3 Operating Profit 2,008.9 1,920.1 Add back: Amortization of intangibles 115.2 109.3 EBITA (a) 2,124.1 2,029.4 Amortization of intangibles 115.2 109.3 Operating Profit 2,008.9 1,920.1 Net Interest Expense 167.1 141.5 Income before income taxes 1,841.8 1,778.6 Income tax expense 600.5 583.6 Income from equity method investments 5.4 8.4 Net income 1,246.7 1,203.4 Less: Net income allocated to noncontrolling interests 98.1 109.5 Net income – Omnicom Group Inc. 1,148.6 1,093.9 Less: Net income allocated to participating securities 6.5 12.4 Net income available for common shares $ 1,142.1 $ 1,081.5 Net income per common share – Omnicom Group Inc. Basic $ 4.80 $ 4.43 Diluted $ 4.78 $ 4.41 Weighted average shares (in millions) Basic 237.9 244.2 Diluted 239.2 245.2 Dividend declared per common share $ 2.15 $ 2.00 (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. Contacts Investor Relations: Media: Shub Mukherjee, 212-415-3011 Joanne Trout, 212-415-3669 [email protected] [email protected]