Omnicom Forms Brand Consulting Group Posted on April 18, 2018December 11, 2020 by Revanth Ravish NEW YORK, April 18, 2018 /PRNewswire/ — Omnicom Group (NYSE: OMC) today announced the strengthening of its branding and research offering through its Brand Consulting Group, addressing the growing demand for seamlessly integrated teams across disciplines, best in class talent around the globe, and cutting-edge offerings that reinvent brands across all consumer touch points. Building upon Omnicom’s core growth strategies, the Brand Consulting Group is focused on: strengthening new business development; creating customized teams for clients; better targeting of internal investments; improving expertise and knowledge across management teams, and creating more opportunities for our employees. Omnicom executive Chuck Brymer will lead the new group as Chairman. Mark O’Brien, currently CFO of Interbrand, will assume the role of COO. The Brand Consulting Group will combine the global expertise of the following agencies: Hall & Partners, Interbrand, C Space, OurCreative, Siegel + Gale, Sterling Brands and Wolff Olins. “We have simplified our organization structure and service offerings to ensure that our client teams consist of the best talent no matter what agency they sit in or where they are located,” said John Wren, President and CEO, Omnicom Group. “Together and as strong independent brands, the Brand Consulting Group provides the best of the best in the branding business – from talent and ideas to innovation and creativity.” Brymer added, “By leveraging the tools and resources of this group of agencies, we can help brands forge deeper, more meaningful connections at speed and scale. I look forward to charting a successful path forward for the benefit of our clients and employees.” Agencies within the Practice Area will continue to retain their strong brands and cultures while continuing to operate as independent businesses. Coordination across management teams and top client leaders will also optimize the performance of our agencies and help drive growth for our clients. 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. View original content:https://www.prnewswire.com/news-releases/omnicom-forms-brand-consulting-group-300628878.html SOURCE Omnicom GroupJoanne Trout, 212-415-3669, [email protected]
Omnicom Group Reports First Quarter 2018 Results Posted on April 17, 2018December 11, 2020 by Revanth Ravish NEW YORK, April 17, 2018 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that its net income for the first quarter of 2018 increased $22.3 million, or 9.2%, to $264.1 million from $241.8 million in the first quarter of 2017. Diluted net income per common share for the first quarter of 2018 increased twelve cents, or 11.8%, to $1.14 per share versus $1.02 per share for the first quarter of 2017. Omnicom’s worldwide revenue in the first quarter of 2018 increased 1.2% to $3,629.6 million from $3,587.4 million in the first quarter of 2017. The components of the change in revenue included an increase in revenue from the positive foreign exchange rate impact of 4.2%, a decrease in acquisition revenue, net of disposition revenue of 4.2% and an increase in revenue from organic growth of 2.4% when compared to the first quarter of 2017. In addition, on January 1, 2018 we adopted FASB Accounting Standards Codification Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). We elected to adopt ASC 606 applying the modified retrospective method. The effect on revenue in the first quarter of 2018 from adopting ASC 606 when compared to the first quarter of 2017 was a decrease in revenue of $42.5 million, or 1.2%. Across our regional markets, organic growth in the first quarter of 2018 as compared to the first quarter of 2017 was 3.1% for the United Kingdom, 9.7% in the Euro Markets and Other Europe, 7.3% in Asia Pacific and 3.1% in Latin America, while North America decreased 0.1% and the Middle East and Africa decreased 8.5%. Organic growth in the first quarter of 2018 as compared to the first quarter of 2017 in our fundamental disciplines was as follows: Advertising increased 1.6%, CRM Consumer Experience increased 6.9%, CRM Execution & Support increased 1.2%, Public Relations increased 0.7% and Healthcare increased 2.7%. Operating profit in the first quarter of 2018 increased $6.0 million, or 1.4%, to $421.7 million from $415.7 million in the first quarter of 2017. Our operating margin for the first quarter of 2018 of 11.6% was unchanged when compared to the first quarter of 2017. The effect on operating profit in the first quarter of 2018 from adopting ASC 606 when compared to the first quarter of 2017 was a decrease of $6.5 million. For the first quarter of 2018, our income tax rate was 24.3% compared to 29.2% for the same period in 2017. The year over year difference in our effective tax rate primarily resulted from the enactment of the Tax Cuts and Jobs Act, which reduced the U.S. Federal statutory tax rate from 35% to 21%. In addition, income tax expense in the first quarter of 2018 was reduced by approximately $13 million, primarily as a result of the successful resolution of foreign tax claims during the quarter. 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 intangible assets) 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 of intangible assets 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 first quarter of 2018, EBITA increased $3.1 million, or 0.7%, to $449.2 million from $446.1 million in the first quarter of 2017. Our EBITA margin of 12.4% was unchanged when compared to the first quarter of 2017. 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, excluding the impact of the adoption of ASC 606. 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 first 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 March 31 (Unaudited) (Dollars in Millions, Except Per Share Data) 2018 (a) 2017 Revenue $ 3,629.6 $ 3,587.4 Operating Expenses: Salary and service costs 2,712.8 2,688.4 Occupancy and other costs 320.3 302.0 Costs of services 3,033.1 2,990.4 Selling, general and administrative expenses 105.4 108.6 Depreciation and amortization 69.4 72.7 3,207.9 3,171.7 Operating Profit 421.7 415.7 Interest Expense 62.3 59.3 Interest Income 15.4 13.9 Income Before Income Taxes 374.8 370.3 Income Tax Expense 90.9 108.0 Income From Equity Method Investments 0.8 0.1 Net Income 284.7 262.4 Net Income Attributed To Noncontrolling Interests 20.6 20.6 Net Income – Omnicom Group Inc. 264.1 241.8 Net income allocated to participating securities — (0.5) Net income available for common shares $ 264.1 $ 241.3 Net income per common share – Omnicom Group Inc. Basic $ 1.15 $ 1.03 Diluted $ 1.14 $ 1.02 Weighted average shares (in millions) Basic 230.2 234.6 Diluted 231.5 236.5 Dividend declared per common share $ 0.60 $ 0.55 (a) On January 1, 2018 we adopted FASB ASC Topic 606 “Revenue from Contracts with Customers” (“ASC 606”), using the cumulative effect method by recognizing the cumulative effect of initially applying ASC 606 as an adjustment to opening retained earnings at January 1, 2018, also referred to as the “modified retrospective method” of adoption. Under the modified retrospective method, we are not required to restate comparative financial information prior to the adoption of ASC 606 and, therefore, such information for the three months ended March 31, 2017 continues to be reported under ASC 605 “Revenue Recognition” (“ASC 605”). The adoption of ASC 606 did not materially impact our financial position. For the three months ended March 31, 2018, the adoption of ASC 606 reduced revenue by $42.5 million and operating profit by $6.5 million. The adoption of ASC 606 did not have a material impact on Net Income – Omnicom Group Inc. or Diluted net income per common share – Omnicom Group Inc. for the three months ended March 31, 2018. As required, a comparison of the current presentation under ASC 606 to the prior presentation under ASC 605 is provided below. Omnicom Group Inc. Impact of the Adoption of ASC 606 Three Months Ended March 31 (Unaudited)(Dollars in Millions, Except Per Share Data) 2018 Reported under ASC 606 2018 Adjustments 2018 Excluding Impact of Adoption of ASC 606 Revenue $ 3,629.6 $ 42.5 $ 3,672.1 Operating Expenses 3,207.9 36.0 3,243.9 Operating Profit $ 421.7 $ 6.5 $ 428.2 The above table presents the U.S. GAAP financial measures of Revenue, Operating Expense and Operating Profit as reported, as well as the impact of the adoption of ASC 606 on these measures for the period presented. The impact of the adoption of ASC 606 on net income – Omnicom Group Inc. and diluted net income per share – Omnicom Group Inc. was not material. Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31 (Unaudited) (Dollars in Millions) 2018 2017 Net Income – Omnicom Group Inc. $ 264.1 $ 241.8 Net Income Attributed To Noncontrolling Interests 20.6 20.6 Net Income 284.7 262.4 Income From Equity Method Investments 0.8 0.1 Income Tax Expense 90.9 108.0 Income Before Income Taxes 374.8 370.3 Interest Income 15.4 13.9 Interest Expense 62.3 59.3 Operating Profit 421.7 415.7 Add back: Amortization of intangible assets 27.5 30.4 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $ 449.2 $ 446.1 Revenue $ 3,629.6 $ 3,587.4 EBITA $ 449.2 $ 446.1 EBITA Margin – % 12.4 % 12.4 % 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 of intangible assets 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. Investor Relations: Shub Mukherjee, 212-415-3011, [email protected]; Media: Joanne Trout, 212-415-3669, [email protected]
Omnicom Group Schedules First Quarter 2018 Earnings Release and Conference Call Posted on April 12, 2018December 11, 2020 by Revanth Ravish 04/11/2018 NEW YORK, April 11, 2018 /PRNewswire/ — Omnicom Group (NYSE: OMC) will publish its first quarter 2018 results on Tuesday, April 17, 2018. The company will host a conference call to review first quarter results on Tuesday, April 17, 2018 at 8:30 AM (ET). The dial-in numbers for the conference call are (800) 230-1093 (domestic) and (612) 288-0340 (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. View original content:https://www.prnewswire.com/news-releases/omnicom-group-schedules-first-quarter-2018-earnings-release-and-conference-call-300628536.html SOURCE Omnicom GroupInvestor Relations: Shub Mukherjee, (212) 415-3011, [email protected] or Media: Joanne Trout, (212) 415-3669, [email protected]
Omnicom’s DAS Group Forms Specialty Marketing Practice Area, Stacey Hightower Named CEO Posted on April 4, 2018December 11, 2020 by Revanth Ravish NEW YORK, April 4, 2018 /PRNewswire/ — The DAS Group of Companies, a division of Omnicom Group Inc. (NYSE: OMC), today announced the strengthening of its highly specialized marketing services offering through its Specialty Marketing Group. This new Practice Area addresses both the growing demand for highly specialized marketing services and the need to integrate those services seamlessly into clients’ marketing efforts around the world. Building upon Omnicom’s core strategies for growth, Omnicom Specialty Marketing Group is focused on strengthening new business development efforts, ensuring our client teams consist of the best talent to address our client’s needs, creating more career opportunities for our people, sharing expertise across management teams and better targeting internal investments. Stacey Hightower, who as CEO is responsible for the overall growth of the group, will lead the Practice Area. Omnicom Specialty Marketing Group encompasses a portfolio of industry-leading companies in field marketing, sales support, merchandising and point of sale, consulting for not-for-profit organizations and other specialized marketing and custom communications services. All agencies will continue to operate as independent brands and businesses within the Practice Area. “Since joining DAS, Stacey has demonstrated strong strategic and operational leadership,” said Dale Adams, CEO, DAS Group of Companies. “While working with a group of agencies with different capabilities, Stacey has been able to connect client demand with distinct customized service offerings, driving growth for our clients and our businesses. I have every confidence that he will continue to do the same in his new role.” Hightower joined DAS in September 2014 as Chief Operating Officer of Group E. Hightower was instrumental in the creation of ONE HUNDRED, the first multi-disciplinary, integrated marketing solutions agency for purpose-driven corporations and non-profit organizations. Stacey’s involvement in the creation of ONE HUNDRED earned him the 2016 ADCOLOR Innovator Award. “While the agencies have different capabilities, we share a common desire to become trusted advisors who are continually providing dynamic business solutions to our clients in a rapidly evolving marketplace,” said Hightower. “In that regard, our uniqueness and our diverse capabilities represent our true strength and differentiation. That’s what makes me excited about the opportunity to serve as CEO of Omnicom Specialty Marketing Group.” ABOUT THE DAS GROUP OF COMPANIES The DAS Group of Companies, a division of Omnicom Group Inc., is a global group of marketing services companies. DAS includes over 200 companies in the following marketing disciplines: specialty, PR, healthcare, CRM, events, promotional marketing, branding and research. Operating through a combination of networks and regional organizations, DAS serves international, regional, national and local clients through more than 700 offices in 71 countries. 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. View original content:https://www.prnewswire.com/news-releases/omnicoms-das-group-forms-specialty-marketing-practice-area-stacey-hightower-named-ceo-300623693.html SOURCE DAS Group of CompaniesJoanne Trout, 212-415-3669, [email protected]