Code Worldwide Announces Appointment of Managing Partner Posted on October 23, 2017December 11, 2020 by Revanth Ravish LONDON, 23 October 2017: Code Worldwide announces the appointment of Ketan Patel as Managing Partner working across all clients. Code operates as the data and technology division of the RAPP Group. Reporting to Carolyn Stebbings, SVP, Data and Technology Solutions RAPP and Managing Director, Code UK, Patel will lead the client services team of seven across accounts including Castrol, Domino’s, Jaguar Land Rover, Mercedes-Benz, OMD, PHD and Telstra. Prior to joining Code, Patel has gathered 20 years of experience in delivery of large-scale projects for clients such as Audi, MINI, Rolls-Royce and Unilever while working for agencies including AKQA, Cognifide, Organic and Razorfish. Code is part of the recently launched Precision Marketing Group within Omnicom, a division which aligns data, analytics, CRM and technology competencies to specialise in the delivery of precisely targeted and meaningful customer experiences. Code supports its clients by leveraging strengths in marketing sciences, martech strategy, data engineering & digital identity, and customer experience management (CXM), to positively drive business impact. Carolyn Stebbings, SVP, Data and Technology Solutions RAPP and Managing Director, Code UK, commented on the appointment, “Ketan’s unique ability to unify and motivate teams coupled with his consultative approach to client relationship management meant he was the perfect candidate for this newly created role. With Code delivering the technology layer within Omnicom’s Precision Marketing Group it is key that we bolster our existing team with such a caliber of talent. I am confident that Ketan will act as a key player in our ongoing growth.” Ketan Patel, Managing Partner Code added, “I’m delighted to join Code at a time when data and technology play an increasingly important role in marketing. I’m also excited about the establishment of Omnicom’s Precision Marketing Group. I am inspired to start this latest chapter of my career with the Code team and have high ambitions for the impact we can achieve with existing and new clients.”
Omnicom Group Reports Third Quarter and Year-to-Date 2017 Results Posted on October 17, 2017December 11, 2020 by Revanth Ravish NEW YORK, October 17, 2017 – Omnicom Group Inc. (NYSE: OMC) today announced that its diluted net income per common share for the third quarter of 2017 increased seven cents, or 6.6%, to $1.13 per share versus $1.06 per share for the third quarter of 2016. Omnicom’s worldwide revenue in the third quarter of 2017 decreased 1.9% to $3,719.5 million from $3,791.1 million in the third quarter of 2016. The components of the change in revenue included an increase in revenue from the positive foreign exchange rate impact of 1.0%, a decrease in acquisition revenue, net of disposition revenue of 5.7% and an increase in revenue from organic growth of 2.8% when compared to the third quarter of 2016. Across our regional markets, organic growth in the third quarter of 2017 as compared to the third quarter of 2016 was 2.1% in North America, 3.8% in the United Kingdom, 7.8% in the Euro Markets and Other Europe, 1.4% in Asia Pacific, while Latin America decreased 5.4% and Middle East and Africa decreased 1.6%. Organic growth in the third quarter of 2017 as compared to the third quarter of 2016 in our four fundamental disciplines was as follows: advertising increased 4.7%, CRM increased 0.1%, public relations decreased 0.4% and specialty communications increased 5.1%. Operating profit in the third quarter of 2017 increased $11.1 million, or 2.4%, to $464.2 million from $453.1 million in the third quarter of 2016. Our operating margin for the third quarter of 2017 increased to 12.5% versus 12.0% for the third quarter of 2016. For the third quarter of 2017, our income tax rate was 31.6% compared to 32.7% for the same period in 2016. The year over year difference resulted from the adoption of FASB Accounting Standards Update 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”) on January 1, 2017. Income tax expense for the third quarter of 2017 included a benefit of $4.8 million arising from a cash tax deduction on restricted stock awards that vested and stock option awards that were exercised in the third quarter of 2017 in excess of the book tax deduction on the amortization of these awards over the vesting period. In prior periods only the book tax deduction was reflected in income tax expense. ASU 2016-09 is required to be adopted prospectively, and prior periods have not been restated. Net income – Omnicom Group Inc. for the third quarter of 2017 increased $9.8 million, or 3.9%, to $263.6 million from $253.8 million in the third quarter of 2016, including the effects of the adoption of ASU 2016-09. Year-to-date Diluted net income per common share for the nine months ended September 30, 2017 increased twenty-four cents, or 7.3%, to $3.55 per share compared to $3.31 per share for the nine months ended September 30, 2016. Worldwide revenue for the nine months ended September 30, 2017 decreased 0.7% to $11,097.1 million from $11,175.1 million in the same period of 2016. The components of the change in revenue included a decrease in revenue from the negative foreign exchange rate impact of 0.5%, a decrease in acquisition revenue, net of disposition revenue of 3.7% and an increase in revenue from organic growth of 3.5% when compared to the same period of 2016. Across our regional markets, organic growth for the nine months ended September 30, 2017 as compared to the same period of 2016 was 1.1% in North America, 7.1% in the United Kingdom, 7.9% in the Euro Markets and Other Europe, 5.7% in Asia Pacific, 1.0% in Latin America and 17.8% in the Middle East and Africa. Organic growth for the nine months ended September 30, 2017 compared to the same period in 2016 in our four fundamental disciplines was as follows: advertising increased 5.0%, CRM increased 1.9%, public relations increased 0.3% and specialty communications increased 3.5%. Operating profit for the nine months ended September 30, 2017 increased $32.6 million, or 2.3%, to $1,439.6 million compared to $1,407.0 million for the same period in 2016. Our operating margin for the nine months ended September 30, 2017 increased to 13.0% versus 12.6% for the same period in 2016. For the nine months ended September 30, 2017, our income tax rate was 31.1% compared to 32.6% for the same period in 2016. The year over year difference resulted from the adoption of ASU 2016-09 on January 1, 2017. Income tax expense for the nine months ended September 30, 2017 included a benefit of $19.5 million arising from a cash tax deduction on restricted stock awards that vested and stock option awards that were exercised in the first nine months of 2017 in excess of the book tax deduction on the amortization of these awards over the vesting period. In prior periods only the book tax deduction was reflected in income tax expense. ASU 2016-09 is required to be adopted prospectively, and prior periods have not been restated. Net income – Omnicom Group Inc. for the nine months ended September 30, 2017 increased $35.7 million, or 4.5%, to $834.0 million from $798.3 million in the same period in 2016. Non-GAAP Financial Measures We use certain non-GAAP financial measures in describing our performance. 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 exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization arising from acquisitions). Accordingly, we believe they are useful measures for investors to evaluate the performance of our businesses. The financial tables at the end of this document reconcile the GAAP financial measure of net income to EBITA for the periods presented. For the third quarter of 2017, EBITA increased $10.0 million, or 2.1%, to $492.1 million from $482.1 million in the third quarter of 2016. Our EBITA margin increased to 13.2% for the third quarter of 2017 versus 12.7% in the third quarter of 2016. For the nine months ended September 30, 2017, EBITA increased 2.3%, or $33.7 million, to $1,526.4 million from $1,492.7 million for the same period in 2016. Our EBITA margin for the nine months ended September 30, 2017 increased to 13.8% versus 13.4% for the same period in 2016. 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. Definitions – Components of Revenue Change We use certain terms in describing the components of the change in revenue above. Foreign exchange rate impact: calculated by translating the current period’s local currency revenue using the prior period average exchange rates to derive current period constant currency revenue. The foreign exchange rate impact is the difference between the current period revenue in U.S. Dollars and the current period constant currency revenue. Acquisition revenue, net of disposition revenue: Acquisition revenue is calculated as if the acquisition occurred twelve months prior to the acquisition date by aggregating the comparable prior period revenue of acquisitions through the acquisition date. As a result, acquisition revenue excludes the positive or negative difference between our current period revenue subsequent to the acquisition date and the comparable prior period revenue and the positive or negative growth after the acquisition date is attributed to organic growth. Disposition revenue is calculated as if the disposition occurred twelve months prior to the disposition date by aggregating the comparable prior period revenue of disposals through the disposition date. The acquisition revenue and disposition revenue amounts are netted in the presentation above. Organic growth: calculated by subtracting the foreign exchange rate impact component and the acquisition revenue, net of disposition revenue component from total revenue growth. 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. 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. Contacts Investor Relations: Media: Shub Mukherjee, 212-415-3011 Joanne Trout, 212-415-3669 [email protected] [email protected] Omnicom Group Inc. Consolidated Statements of Income Three Months Ended September 30 (Unaudited) (Dollars in Millions, Except Per Share Data) 2017 2016 Revenue $ 3,719.5 $ 3,791.1 Operating Expenses: Salary and service costs 2,770.5 2,851.6 Occupancy and other costs 316.7 309.2 Costs of services 3,087.2 3,160.8 Selling, general and administrative expenses 99.5 104.1 Depreciation and amortization 68.6 73.1 3,255.3 3,338.0 Operating Profit 464.2 453.1 Interest Expense 59.0 52.9 Interest Income 12.6 10.9 Income Before Income Taxes 417.8 411.1 Income Tax Expense (a) 132.0 134.3 Income From Equity Method Investments 1.1 1.4 Net Income 286.9 278.2 Net Income Attributed To Noncontrolling Interests 23.3 24.4 Net Income – Omnicom Group Inc. 263.6 253.8 Less: Net income allocated to participating securities 0.3 1.2 Net income available for common shares $ 263.3 $ 252.6 Net income per common share – Omnicom Group Inc. Basic $ 1.14 $ 1.06 Diluted $ 1.13 $ 1.06 Weighted average shares (in millions) Basic 231.2 237.4 Diluted 232.7 238.7 Dividend declared per common share $ 0.55 $ 0.55 (a) On January 1, 2017, we adopted FASB ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” (ASU 2016-09), which requires all additional tax benefits or deficiencies related to share-based compensation to be recognized in the results of operations on the restricted stock vesting date or on the exercise date for stock options. ASU 2016-09 is required to be adopted on a prospective basis and retroactive restatement is not permitted. As a result, income tax expense for the three months ended September 30, 2017 reflects a reduction of $4.8 million arising from a larger cash tax deduction as compared to the book tax deduction resulting from the vesting of restricted stock and stock options that were exercised in the third quarter of 2017. The larger tax deduction is primarily due to the increase in the intrinsic value of these awards that resulted from an increase in the price of our common stock since the grant date of the awards. Omnicom Group Inc. Consolidated Statements of Income Nine Months Ended September 30 (Unaudited) (Dollars in Millions, Except Per Share Data) 2017 2016 Revenue $ 11,097.1 $ 11,175.1 Operating Expenses: Salary and service costs 8,200.8 8,298.9 Occupancy and other costs 915.7 925.8 Costs of services 9,116.5 9,224.7 Selling, general and administrative expenses 328.6 323.1 Depreciation and amortization 212.4 220.3 9,657.5 9,768.1 Operating Profit 1,439.6 1,407.0 Interest Expense 169.2 157.6 Interest Income 38.0 30.6 Income Before Income Taxes 1,308.4 1,280.0 Income Tax Expense (a) 406.7 417.7 Income From Equity Method Investments 2.7 4.0 Net Income 904.4 866.3 Net Income Attributed To Noncontrolling Interests 70.4 68.0 Net Income – Omnicom Group Inc. 834.0 798.3 Less: Net income allocated to participating securities 1.4 4.8 Net income available for common shares $ 832.6 $ 793.5 Net income per common share – Omnicom Group Inc. Basic $ 3.58 $ 3.33 Diluted $ 3.55 $ 3.31 Weighted average shares (in millions) Basic 232.6 238.4 Diluted 234.4 239.6 Dividend declared per common share $ 1.65 $ 1.60 (a) On January 1, 2017, we adopted FASB ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” (ASU 2016-09), which requires all additional tax benefits or deficiencies related to share-based compensation to be recognized in the results of operations on the restricted stock vesting date or on the exercise date for stock options. ASU 2016-09 is required to be adopted on a prospective basis and retroactive restatement is not permitted. As a result, income tax expense for the nine months ended September 30, 2017 reflects a reduction of $19.5 million arising from a larger cash tax deduction as compared to the book tax deduction resulting from the vesting of restricted stock and stock options that were exercised in the first nine months of 2017. The larger tax deduction is primarily due to the increase in the intrinsic value of these awards that resulted from an increase in the price of our common stock since the grant date of the awards. Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended September 30 (Unaudited) (Dollars in Millions) 2017 2016 Net Income – Omnicom Group Inc. $ 263.6 $ 253.8 Net Income Attributed To Noncontrolling Interests 23.3 24.4 Net Income 286.9 278.2 Income From Equity Method Investments 1.1 1.4 Income Tax Expense 132.0 134.3 Income Before Income Taxes 417.8 411.1 Interest Income 12.6 10.9 Interest Expense 59.0 52.9 Operating Profit 464.2 453.1 Add back: Amortization of intangible assets 27.9 29.0 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $ 492.1 $ 482.1 Revenue $ 3,719.5 $ 3,791.1 EBITA $ 492.1 $ 482.1 EBITA Margin – % 13.2 % 12.7 % The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to EBITA (defined as earnings before interest, taxes and amortization of intangibles) and EBITA Margin (defined as EBITA divided by revenue) for the periods presented. We use EBITA and EBITA margin as additional operating performance measures, which exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization arising from acquisitions). Accordingly, we believe they are useful measures for investors to evaluate the performance of our businesses. 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. Reconciliation of Non-GAAP Financial Measures Nine Months Ended September 30 (Unaudited) (Dollars in Millions) 2017 2016 Net Income – Omnicom Group Inc. $ 834.0 $ 798.3 Net Income Attributed To Noncontrolling Interests 70.4 68.0 Net Income 904.4 866.3 Income From Equity Method Investments 2.7 4.0 Income Tax Expense 406.7 417.7 Income Before Income Taxes 1,308.4 1,280.0 Interest Income 38.0 30.6 Interest Expense 169.2 157.6 Operating Profit 1,439.6 1,407.0 Add back: Amortization of intangible assets 86.8 85.7 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $ 1,526.4 $ 1,492.7 Revenue $ 11,097.1 $ 11,175.1 EBITA $ 1,526.4 $ 1,492.7 EBITA Margin – % 13.8 % 13.4 % The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to EBITA (defined as earnings before interest, taxes and amortization of intangibles) and EBITA Margin (defined as EBITA divided by revenue) for the periods presented. We use EBITA and EBITA margin as additional operating performance measures, which exclude the non-cash amortization expense of intangible assets (primarily consisting of amortization arising from acquisitions). Accordingly, we believe they are useful measures for investors to evaluate the performance of our businesses. 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.
C Space’s Charles Trevail Named Global CEO of Interbrand Group of Companies Posted on October 10, 2017December 11, 2020 by Revanth Ravish NEW YORK, October 9, 2017– The Interbrand Group of Companies today announced that Charles Trevail, will become its new Chief Executive Officer, effective January 1st, 2018. Currently the CEO of Omnicom (NYSE: OMC) agency, C Space, Trevail succeeds Jez Frampton, who is retiring at the end of 2017. In addition, C Space will become part of the Interbrand Group. Trevail has been CEO of C Space for close to four years. Prior to that he spent 9 years as CEO of Promise Corporation, a company he founded. Promise Corporation was acquired by Omnicom and merged into what became C Space in 2012. “It’s a great honor to lead Interbrand” said Trevail. “It is a high-profile business with incredible people and clients. It is also a brand that is one of the most admired and influential in the marketing community. The world of brands and customer experience is the growth engine for the future. I look forward to getting started and working with the team to deliver for clients.” Having built up two very high-profile consultancies, Trevail is passionate about reinventing brands through collaborating with customers. Before Promise Corporation, he was CEO of FutureBrand – EMEA, and Managing Director of Brand Union. He has advised companies and governments internationally, including British Airways, BMW, McDonald’s, Telefonica and L’Oreal. Jez Frampton added, “I have greatly enjoyed the last 12 years as CEO and Charles is the perfect person to take Interbrand to the next level. He is a passionate and proven leader who knows how to build relationships – with clients, with agency partners, and with talent – that build brands. I feel fortunate to be leaving Interbrand in such capable hands.”
Omnicom Takes Top Honors at 2017 Spikes Asia Festival Posted on October 2, 2017December 11, 2020 by Revanth Ravish BBDO Won Creative Network of the Year and PHD Takes Top Media Agency NEW YORK AND SINGAPORE, October 2, 2017 – At the 2017 Spikes Asia Festival of Creativity, Omnicom agencies continued to be the most creatively awarded in the industry. BBDO received the night’s top honor by winning Network of the Year with Clemenger BBDO and Colenso BBDO placing second and third in the Agency of the Year category. Media Agency of the Year was awarded to PHD, Auckland, New Zealand with OMD Singapore placing second. In total, over 20 Omnicom agencies in 15 countries contributed to more than 130 Spike Awards with work from 50 different clients. More than any other holding company, Omnicom won seven Grand Prix Awards in Digital, Direct, Film, Healthcare, PR and Entertainment as well as the only Creative Effectiveness award. The Creative Effectiveness Grand Prix went to Colenso BBDO and PHD, Auckland, New Zealand for their campaign ‘Brewtroleum’ for DB Breweries/Heineken. Colenso BBDO also picked up a Grand Prix in Film for Pedigree’s Dog Adoption. Clemenger BBDO Melbourne continued their winning streak from Cannes Lions by winning four Grand Prix awards for ‘Meet Graham’ for the Transport Accident Commission Victoria. Hakuhodo Tokyo took a Grand Prix in Entertainment for ‘Gravity Cat’ for Sony Interactive Entertainment. “The outstanding results at Spikes reflect we have the best people in the business producing award winning work for our clients that goes beyond advertising.” said John Wren, President and CEO, Omnicom Group. “I am proud of the talent behind this well-deserved recognition.” For further information and the full list of winning work, please visit https://www.spikes.asia/winners/2017.