Omnicom Agencies Continue to Champion LGBTQ+ Inclusion

Omnicom Group announces sponsorship of 2019 WorldPride celebration

NEW YORK, Feb. 28, 2019 — Omnicom Group Inc. (NYSE: OMC) is proud to announce it will be working with NYC Pride as a Platinum Sponsor for the 2019 WorldPride celebration. As part of its sponsorship, Omnicom agencies will be doing in-kind work to promote this year’s historic event, which marks the first WorldPride celebration in the United States, the 50th anniversary of the Stonewall Uprising and a half-century of LGBTQ+ liberation. A number of Omnicom agencies are assisting NYC Pride in its branding and communication efforts, including Interbrand, RAPP Worldwide, Siegal + Gale, TBWA Health, Harrison & Star, FleishmanHillard, Ketchum, Porter Novelli and RxMosaic.

Awareness, acceptance and advocacy of the LGBTQ+ community is a staple of Omnicom’s diversity & inclusion efforts. In early 2017, the company expanded its existing ERG known as the Omnicom People Engagement Network (OPEN) to include OPEN Pride, a network whose goal was to fuel the personal growth, organizational inclusion and business success of Omnicom’s LGBTQ+ employees and allies. Since its initiation two years ago, OPEN Pride has expanded to 11 chapters across the globe and has several others in the works. At this year’s World Economic Forum meeting in Davos, Omnicom was also a part of the consortium of multinational companies who launched the Partnership for Global LGBTI Equality, a multi-stakeholder initiative that aims to accelerate LGBTI workplace inclusion globally.

“2019 is a year of remarkable milestones for the LGBTQ+ community, and when we considered the foundation of support and inclusivity we’ve built internally, it became clear we had a chance to do something greater by going beyond our own walls and participating in this year’s NYC Pride celebration,” says Tiffany R. Warren, SVP and Chief Diversity Officer of Omnicom. “We’re honored that we can celebrate our LGBTQ+ employees and show support for the greater community the best way we know how: through our work.”

Omnicom’s sponsorship with NYC Pride is just one of the many ways the company has tapped into its talent to offer support to the LGBTQ+ community, its advocacy groups and its nonprofit organizations. In one specific case, Omnicom’s UK OPEN Pride chapter created an annual global challenge where agencies could pick a local LGBTQ+ charity of their choice and create Pride related campaigns with them. In Mumbai, the DDB team created an Open Closet campaign with the oldest LGBTQ organization in India, the Humsafar Trust, so they could help educate people on LGBTQ+ life experiences. At RAPP London, employees teamed up with Mermaids, an advice and information service for young transgender people and their families, to create a more direct, online route to information parents are looking for as they support their trans children.

“NYC Pride has the great and unique opportunity to celebrate the global successes of the LGBTQ+ movement, and we’re honored we can do so by hosting WorldPride events that will inspire, educate and unify our diverse community,” says Chris Frederick, Managing Director of NYC Pride. “Through the outstanding branding and promotional efforts by Omnicom agencies, we’ve been able to capture the essence of this paramount year, which is one of both reminiscing and looking ahead, commemorating yet progressing. Together, we’re building excitement and anticipation for what’s bound to be an extraordinary month of activities.”  

With over 25 events spanning across the entire month of June, this year’s WorldPride is set out to be the largest Pride celebration in the world. From rallies to parties to lectures, attendees will have countless ways to get involved and celebrate the “Millions of Moments of Pride,” this year’s theme for the annual event. To find out more about NYC Pride and to discover the full list of WorldPride and Stonewall 50 events, please visit: https://2019-worldpride-stonewall50.nycpride.org/.

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.

About Heritage of Pride
Heritage of Pride, Inc. is the volunteer-directed organization behind the official NYC Pride roster of events. Heritage of Pride’s mission is to work toward a future without discrimination where all people have equal rights under the law. We do this by producing LGBTQIA+ Pride events that inspire, educate, commemorate and celebrate our diverse community. 

BBDO New York Tops The WARC Creative 100 Rankings As The Most Creative Agency In The World

BBDO is the #1 Ranked Agency Network

NEW YORK, Feb. 25, 2019 /PRNewswire/ — The World Advertising Research Center (WARC) has released the results of its first Creative 100, ranking the most creative agencies, networks and campaigns in the world.  The WARC Creative 100 replaces The Gunn Report as the definitive benchmark for creative success based on results from the most prestigious global and regional industry competitions.

BBDO New York was the top-ranked most creative agency in the world followed by AMVBBDO in London at #2.  In fact, five BBDO agencies ranked among the world’s Top 20, contributing to BBDO’s overall position as the number one ranked most creative agency network.  In addition to BBDO New York and AMVBBDO, Colenso BBDO in New Zealandwas ranked #8, AlmapBBDO in Brazil was #17 and CHE Proximity in Melbourne was #19.  In all, 22 BBDO agencies contributed to its network results.

Five BBDO-created campaigns for five different clients were among the 20 most awarded campaigns of the year.  These included:  “#Bloodnormal” for Bodyform/Libresse from AMVBBDO (#2), “The Talk” for P&G from BBDO New York (#8), “Live Looper” for Downtown Records also from BBDO New York (#14), “SelfieSTIX” for Pedigree from Colenso BBDO (#16) and “Prescribed to Death” for the National Safety Council (NSC) from Energy BBDO Chicago (#18).

Topping the WARC Creative 100 follows news from earlier this month that BBDO and BBDO New York were also the number one network and agency, respectively, across all marketing communications in The Drum’s Big Won rankings.  And just last week, Fast Company published its annual list of the World’s Most Innovative Companies.  For the second year in a row, BBDO was ranked one of the most innovative companies in advertising.  In December, BBDO New York was named Shoot Agency of the Year for best content production.  And Contagious named BBDO to its list of 2019 Pioneers, celebrating the best and bravest agencies on the planet.

“What makes me most proud of topping the first WARC Creative 100 is that it’s not just one agency or campaign.  It’s multiple agencies delivering work for multiple clients across multiple forms and platforms,” said David Lubars, Chief Creative Officer, BBDO Worldwide.  

Added Greg Hahn, Chief Creative Officer, BBDO New York, “To be at the top of this list is a huge testament to the talent and passion of the people here across the board. It’s a recognition that everyone is on the same mission.”  

The WARC Creative 100 was established in 2019 as a replacement to the Gunn Report and is one of a series of rankings that will be published by WARC, offering an independent industry benchmark for creativity, media and effectiveness.  This year’s WARC Creative 100 was compiled from global industry competitions including Cannes Lions, Clio Awards, D&AD, London International Awards and the One Show, along with regional competitions such as Adfest, Dubai Lynx, El Ojo de Iberoamérica, El Sol, Eurobest, Golden Drum, Loeries and Spikes Asia.  2019 marks the 13th year in a row that BBDO has topped these creative rankings as the most creative agency network – 12 under the Gunn Report and now under the WARC Creative 100.

“The WARC Creative 100 delivers an independent and transparent global benchmark for the industry, shining a light on the brilliant and inspirational work produced and all those involved.  We congratulate BBDO New York as #1 agency and BBDO Worldwide as #1 Network – a truly outstanding achievement,” said David Tiltman, Head of Content, WARC.

BBDO’s parent, Omnicom, was the world’s best creative holding company and its global client Mars was ranked the world’s most creative advertiser. 

Further details can be found at www.warc.com/rankings/creative-100

ABOUT BBDO

BBDO’s mantra is “The Work. The Work. The Work.”  Every day, BBDO people in 289 offices in 81 countries work day by day, job by job and client by client to create and deliver the world’s most compelling commercial content.  BBDO is part of Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com), a leading global marketing and corporate communications company.

ABOUT WARC

WARC provides the latest evidence, expertise and guidance to make marketers more effective.  WARC’s mission to save the world from ineffective marketing.

WARC’s clients include the world’s largest brands, advertising and media agencies, media owners, research companies and universities. They rely on WARC for rigorous, unbiased information and advice on almost any advertising and marketing issue, which WARC delivers via best practice guides, case studies, research papers, special reports and advertising trend data, as well as via webinars, awards, events and advisory services.

WARC collaborates with more than 50 respected industry organizations globally including:  The Advertising Research Foundation, Cannes Lions, Effie Worldwide, Association of National Advertisers, ESOMAR, 4A’s, IPA and DMA.

WARC was founded in 1985, and has offices in the UK, US and Singapore. In July 2018, WARC became part of Ascential plc, the global specialist information company.

SOURCE BBDO Worldwide

OMD Named Global Media Agency of the Year 2019 by Adweek

LONDON and NEW YORK, Feb. 25, 2019 /PRNewswire/ — OMD has been named Global Media Agency of the Year 2019 by Adweek, a leading advertising industry publication. Adweek cited the company’s impressive turnaround performance following a challenging 2017 that saw the historically dominant agency fall to the bottom of major media analyst rankings. Adweek’s story details the comeback that took place during 2018 – a journey that saw OMD win or retain over $2.6b of business.

“It’s a great honor to be named Adweek’s Global Media Agency of the Year. Not only did we win more than 300 pitches across all geographies last year, but at the same time we more than doubled our retention rate and improved our client ratings four consecutive times throughout 2018. We also remained the most medaled agency at the Cannes Lions Festival of Creativity. When you put all this together it is simply astonishing,” said Florian Adamski, Global CEO of OMD. “But none of this would have been possible without the hard work, talent and adaptability of our people nor the trust placed in us by our clients and partners. I’m incredibly proud of what we have achieved and look forward to building on this foundation in 2019 and beyond.”

According to Adweek’s story, the turnaround began with key leadership changes including the appointment of Florian Adamski to Global CEO in late 2017 and the subsequent development of a new brand promise and competitive positioning, Better decisions, faster.

The article further credits numerous global initiatives undertaken across the business and the joint introduction of a new tech platform (Omni) and media planning process (OMD Design) with the turnaround. 

The story concludes that, after years of global dominance, despite a difficult 2017, OMD, whose clients include McDonald’s, PepsiCo, Apple and the Renault Nissan Alliance, among many others, has delivered an unprecedented comeback and is once again at the top of its game.

OMD combines innovation, creativity, empathy and evidence to make Better decisions, faster on behalf of our clients. With over 12,000 people working in over 100 countries, OMD is the world’s largest media network. OMD is currently ranked the world’s most effective media agency network in the Effie Effectiveness Index. OMD is an Omnicom Media Group agency and part of Omnicom Group. Omnicom Media Group is the media services division of Omnicom Group, Inc. (NYSE: OMC). For more information please visit https://www.omd.com/

CONTACT: Joslyn Head, +44-(0)7866-030-979, [email protected]

SOURCE OMD International

Omnicom Agencies Begin 2019 With Prestigious Industry Award Wins

Omnicom agencies top the lists for WARC, Adweek, Fast Company, and The Drum

 NEW YORK, Feb. 25, 2019 /PRNewswire/ — Omnicom Group (NYSE: OMC) is starting the new year off strong with its agencies topping the lists of some of the marketing industry’s most prestigious innovation and creativity rankings. Earlier today, the World Advertising Research Center (WARC) announced its WARC Creative 100, an annual global index of the world’s top marketing campaigns and companies based on their business impact. Three of Omnicom’s networks ranked among the world’s top five most awarded creative networks in the industry. BBDO Worldwide came in as #1 for the 13th consecutive year, followed by DDB Worldwide as #2 and TBWA\Worldwide as #5.

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WARC also recognized four of Omnicom’s agencies in its ranking of the top 10 most creative agencies. BBDO New York topped the list as #1, AMV BBDO as #2, adam&eveDDB as #3 and Colenso BBDO as #8. As a result, for the second consecutive year, Omnicom Group was named the world’s most awarded holding company.

“Producing brilliant creative ideas that drive business results for our clients is why we come to work every day,” said John Wren, Chairman and CEO of Omnicom Group. “It is especially gratifying to see multiple Omnicom agencies producing award-winning work for a wide variety of our clients across different platforms and geographies. I could not be prouder of our teams and congratulate them for their outstanding work.”

This news comes on the heels of today’s announcement that OMD was named 2019 Global Media Agency of the Year by Adweek, a leading advertising industry publication. And just last week, Fast Company published its annual list of the World’s Most Innovative Companies. Within the advertising sector, two of Omnicom’s agencies were honored in the top 10, with BBDO New York ranked as #3 and TBWA\Worldwide ranked as #9. This was the second year in a row BBDO was featured on the list, moving up four spots from its 2018 position as #7.

In addition, The Drum‘s Big Won results were released earlier this month, mirroring WARC’s results. BBDO came in as #1 for most-awarded agency network, followed by DDB as #4 and TBWA as #11. When it came to the most-awarded creative agencies, Omnicom impressively claimed half of the spots within the top 20: BBDO New York #1, DDB Chicago #6, Che Proximity #9, AMV BBDO #12, adam&eve DDB #14, Energy BBDO #15, TBWA\RAAD #16, AlmapBBDO Sao Paulo #18, DDB Group Germany #19 and DDB Group New Zealand #20. These rankings again helped earn Omnicom the prestigious title of the #1 most-awarded holding company. 

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.

SOURCE Omnicom Group

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Hearts & Science Names Annalect North American Chief Executive Erin Matts as New U.S. CEO

Omnicom Media Group’s data-driven media agency Hearts & Science has appointed Erin Matts to U.S. CEO, effective immediately.

The appointment comes after former global chief Scott Hagedorn was promoted last week to CEO of the larger Omnicom Media Group in North America. He succeeded Page Thompson, who retired after four decades with the holding company.

Matts hails from Annalect, OMG’s data and analytics division, where she was North American CEO. During her time there, she drove the closer integration of data analytics across Omnicom’s creative agencies, spearheaded an effort to increase the number of women in leadership roles and helped develop and launch the Omni precision marketing platform.

“As the North American CEO of Annalect, Erin has been invaluable to Hearts & Science from the moment we opened our doors three years ago—supporting every new business pitch and helping us assure continuous innovation in data and analytics,” Hagedorn said in a statement. “Her broader experiences enabling behaviorally inspired and data-informed marketing solutions for all OMG clients are the perfect credentials for leading an agency that has the word ‘hearts’ and ‘science’ in its name.”

Matts is a 14-year veteran of Omnicom Media Group. She became chief digital officer of OMD in 2008 and then left the network for a few years to experience the client side of the business in roles that included svp, chief digital marketing officer at Glam Media and global director of digital connections at Anheuser-Busch InBev.

Matts returned to Omnicom in 2013 to become CMO of Annalect and took over as CEO of North America when Hagedorn left to launch Hearts & Science in 2016.

In a recent interview with Adweek, Matts remembered when she first joined Annalect and Hagedorn told her, “You do know what a critical role as a translator you’re going to play. Take all the sciences, all the math, and translate that into something human.”

While at Annalect, Matt said she “nailed the science” part in Hearts & Science. Now, she wants to focus on the “heart” of the business by using analytics to help creatives, strategists and comms planning teams further apply that approach to the art of storytelling. Her role will require finding “the right balance” between the two, she added: creativity and science.

“Scott is the ultimate visionary to me,” Matts said. “He’s always five years, 10 years, five minutes ahead of whatever conversation you’re having with him.”

In the three years since its founding, Hearts & Science expanded to 25 offices in 13 countries, with five locations in the U.S. alone. It won major media accounts, including AT&T, Procter & Gamble and the WarnerMedia conglomerate.

“It’s been exciting seeing this agency grow in a meaningful way,” Matts said. “I’m excited to be the person who helps usher it into [the next phase].”

Along with bolstering the agency’s capabilities and expertise, Matts added that she will be focused on increasing diversity and inclusion efforts, as she did at Annalect. There, she started a series of fireside chats where women were encouraged to talk about their experiences in the industry, both good and bad.

“We just heard from women in and out of our organization,” she said. “It was so important to hear their stories. It made the positivity bubble up within the organization. I absolutely want to bring that to Hearts & Science.”

As for having the opportunity to rejoin the media agency world at a time when her background in data and analytics is critical, Matts said she’s ready to “get her hands dirty to deliver real results.”

Adweek: https://www.adweek.com/agencies/hearts-science-names-annalect-north-american-chief-executive-erin-matts-as-new-u-s-ceo/

Scott Hagedorn Named CEO of Omnicom Media Group NA, John Swift Named Chief Operating Officer

Catherine Sullivan Named Chief Investment Officer.

NEW YORK, Feb. 15, 2019 /PRNewswire/ — Omnicom Media Group (OMG) the media services division of Omnicom Group Inc. (NYSE: OMC) has named Scott Hagedorn CEO of its North American operations.  Hagedorn, who steps into the role following three years as the first CEO of Hearts & Science, succeeds Page Thompson, who is retiring following a distinguished 40-year career at Omnicom. 

“Scott’s record of innovation and transformation, combined with his hands-on leadership experience across multiple OMG agency brands and practice categories make him the ideal choice to lead Omnicom Media Group North America into a new era,” said Omnicom Media Group CEO Daryl Simm.   

As CEO of Hearts & Science, Hagedorn built a media agency grounded in data driven marketing.  Prior to that, he was CEO of Annalect, OMG’s data and analytics division.  

Partnering with Hagedorn, John Swift has been named Chief Operating Officer, OMG North America.  Swift moves into the COO job following his tenure leading Investment and Integrated services for OMG North America, where he oversaw the expansion of OMG’s performance and activation business units.  

Completing the new leadership roster, OMG president of US investment Catherine Sullivan has been elevated to the role of Chief Investment Officer for North America.  Since joining OMG in 2016 following senior sales roles at NBC and Disney, Sullivan has effectively leveraged her experience on the other side of the negotiating table to deliver new value to clients by re-imagining OMG’s go- to- market strategies.  

Said Simm, “Together, Scott, John and Catherine are uniquely qualified to deliver OMG’s promise to clients: future-forward solutions, flawless activation, and marketplace advantage – a combination that drives business results.” 

Commenting on his new role, Hagedorn said, “All marketers today face the same challenge – how can they identify their customers across screens, and effectively and efficiently serve them relevant, resonant and human brand messaging.  Omnicom Media Group leads the industry in enabling clients to meet this challenge for three reasons –   our people, our practices and our products.  Assuring and expanding those assets will be my priority.”   

All appointments are effective immediately. 

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 media networks Hearts & Science, OMD and PHD; data and analytics platform Annalect Group; performance marketing agency Resolution Media; and a number of specialty media communications companies.

SOURCE Omnicom Media Group

TBWA\Media Arts Lab Chairman Lee Clow Retires

Advertising legend, TBWA Global Director of Media Arts, and Chairman and founder of TBWA\Media Arts Lab honored with “Chairman Emeritus” title, and a love-filled celebration on Valentine’s Day.Clow announces retirement in a love note–to the ad industry, and to the company he spent his life working for. 

LOS ANGELES, Feb. 14, 2019 /PRNewswire/ — “Think Different (Here’s to the Crazy Ones).” “Dogs Rule.” “Yo quiero Taco Bell.” “Keeps Going and Going.” “Impossible Is Nothing.” “That’s G.” Lee Clow, the visionary creative who touched the hearts of consumers and revitalized brands with iconic advertising campaigns, is retiring.

The Global Director of Media Arts at worldwide advertising collective TBWA, and founder and Chairman of TBWA\Media Arts Lab, will move into an advisory role as Chairman Emeritus of the agency he founded in 2006 to serve Apple and to embody his vision of an agency that impacts culture, rather than just “makes ads.”

“The years I spent doing this thing called ‘advertising’ have been fun: challenging, rewarding, maddening—sometimes painful—but mostly, joyful. And I wouldn’t trade a day of it.” Clow—an original Chiat\Day partner and one-time TBWA\Worldwide Chairman—mused, in his “Love Note to Advertising,” released today.

Clow continues to work on a personal film project that tells the story behind some of the most famous and culture-altering advertising in history, recalling his 50 years at Chiat\Day—the people, the work—and retelling how they did it.

He will also remain involved in the agency’s social-impact group, For Good, based in Los Angeles, where he will advise on select projects for clients who share his commitment to the planet and the people (and animals) who inhabit it.

Don’t do the right thing,” he challenged the agency, the advertising world, and clients, on TBWA\Chiat\Day’s 50th anniversary in 2018. “Do the brave thing. Do the thing that doesn’t just defy the status quo, but reshapes it, forever.”

Clow actually announced his retirement to the agency, alumni and close friends in October 2018, at a party on Jay Chiat’s birthday, part of the year-long “Chiat\Day 50” celebration. His decision to formally share the news with the industry on Valentine’s Day is a nod to Jay Chiat’s unconventional custom of sending Valentine’s Day cards to staff, colleagues and clients, instead of the expected, “Season’s Greetings,” typically dispatched during December holidays.

Clow’s career, that started at Chiat\Day in LA, spans five decades. It tells a story of “doing the brave thing,” with disruptive campaigns that epitomized “California cool.” He took Chiat\Day’s creatively audacious style of advertising global when he helped lead the successful merger with TBWA, crystallizing the agency’s reputation as the destination for creative professionals who want to do groundbreaking, iconic work.

“Lee will always be our creative conscience,” said Troy Ruhanen, President and CEO, TBWA\Worldwide. “He has given so much to our company and to our industry.  His challenge to us, to do the brave thing, to Disrupt, will continue to be our North Star. We all love you, Lee.”

“Lee is one of the most talented and visionary leaders in our industry,” said Chairman and CEO of Omnicom Group, John Wren. “Over the past five decades, he has built a foundation of creative excellence for the TBWA network that has distinguished the agency among its peers. On behalf of the Omnicom family, I would like to thank Lee for his invaluable leadership and significant contributions to our group.”

There’s perhaps no better example of Clow’s impact on the industry than his 30-plus-year partnership with Apple. From the launch of Macintosh in 1984, to the now-famous “Think Different (Here’s to the Crazy Ones)” campaign that launched the rebirth of Apple in 1997. During the past two decades he helped orchestrate Apple’s moves, into music with iPod and iTunes with the celebrated “Silhouettes” campaign, into phones with the category-redefining iPhone and then, creating the “campaign of the decade,” “Get a Mac (Mac versus PC).” Then, he helped Apple forge a whole new category with iPad. Most recently, Clow led the creative teams that launched Apple Music into the world, and worked on the introduction of Apple Watch.

Tim Cook, CEO of Apple, added: “During his long partnership with Steve and Apple, Lee told powerful visual stories that elevated new technologies with the passion, creativity and ingenuity that define our own humanity. He helped Apple carry itself through times of challenge, and his work inspired audiences to look beyond the horizon as an exciting future came into view. Lee’s body of work over five decades hums with cleverness, warmth and enthusiasm—and there is no doubt that it will inspire and motivate generations of ‘Crazy Ones’ still to come.”

In 2018, Adweek named TBWA its “Global Agency of the Year,” recognizing its strong global relationship with Apple—one of the industry’s longest-running, and most prolific, creative partnerships. 

The agency will continue to serve Apple around the world—led by Global President of TBWA\Media Arts Lab, Katrien De Bauw, and by Global Chief Creative Officer, Brent Anderson—and to set global creative standards. In 2018, Media Arts Lab won 64 awards: for the launch of HomePod, with its Cannes Lions Grand Prix-winning film, “Welcome Home”; for the evolution of its “Shot on iPhone” campaign into long-form content across the globe (notably, the film, “Three Minutes,” in China), and into social media, with @apple; and for its “Behind the Mac” campaign (including an animated short for Apple’s holiday campaign called, “Share Your Gifts”).

“In constantly pushing ourselves to reach the creative standard he set, we are better than we ever could imagine being,” said Brent Anderson, adding that, “So we’ll do just as he always asked us to do: ‘Make it smart. Make it beautiful. And have fun.'”

Clow often credits his artful, freethinking, creative style to his California roots. To celebrate his outstanding contributions to the creative community, and his love for his hometown, the agency has established a scholarship at the College of the Arts—School of Art at Clow’s alma mater, California State University Long Beach (CSULB). Additionally, all proceeds from his film project will go into a college fund previously established in Clow’s and Chiat’s names at Art Center College of Design, which was created to assist low- and middle-income students with tuition fees and costs.

Also, TBWA agencies in Los Angeles will continue to honor Clow’s impact on the Southern California creative community by partnering with Turnaround Arts: California, a national, public-private partnership that leverages the arts to spark transformation in the state’s highest-need schools. Agency leaders and staff will work with Turnaround Arts educators on programs that will bolster the creative skills of teachers and students, including hosting workshops focused on graphic design, coding and creative problem-solving.

Clow is a member of the One Club Hall of Fame, the Art Directors Club Hall of Fame and the Museum of Modern Art’s Advertising Hall of Fame, and has been honored by the Clios with a Lifetime Achievement Award, and by Cannes Lions with the Lion of St. Mark. Clow was also inducted into the American Advertising Federation’s Hall of Fame and the American Marketing Association’s Hall of Fame.

About TBWA\WorldwideTBWA is The Disruption® Company: the cultural engine for 21st century business. Named Adweek‘s 2018 Global Agency of the Year, we create disruptive ideas that locate and involve brands in culture, giving them a larger share of the future. Our collective has 11,300 creative minds across 275 offices in 95 countries, and also includes brands such as AUDITOIRE, Digital Arts Network (DAN), eg+ worldwide, GMR, The Integer Group®, TBWA\Media Arts Lab, TBWA\WorldHealth and TRO. Global clients include adidas, Apple, Gatorade, Henkel, Hilton Hotels, McDonald’s, Michelin, Nissan, and Singapore Airlines. Follow us onTwitter,LinkedIn andInstagram, and like us onFacebook.

About Omnicom Group Inc.Omnicom Group Inc. OMC,-0.78%(https://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.

SOURCE TBWA\Worldwide

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Omnicom Group Reports Fourth Quarter and Full Year 2018 Results

NEW YORK, Feb. 12, 2019 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that its net income for the fourth quarter of 2018 increased $144.8 million, or 56.9%, to $399.2 million from $254.4 million in the fourth quarter of 2017.  Diluted net income per common share for the fourth quarter of 2018 increased sixty-eight cents, or 62.4%, to $1.77 per share versus $1.09 per share for the fourth quarter of 2017. In the fourth quarter of 2017, we increased income tax expense to record the net effect of the enactment of  the “Tax Cuts and Jobs Act” (the “2017 Tax Act”), which resulted in a net decrease to net income – Omnicom Group Inc. and diluted net income per common share of $106.3 million and forty-six cents per share, respectively.

Omnicom’s worldwide revenue in the fourth quarter of 2018 decreased 2.2% to $4,086.7 million from $4,176.6 million in the fourth quarter of 2017. The components of the change in revenue included a decrease in revenue from the negative foreign exchange rate impact of 2.0%, a decrease in acquisition revenue, net of disposition revenue of 2.4% and an increase in revenue from organic growth of 3.2% when compared to the fourth quarter of 2017.  In addition, effective 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 fourth quarter of 2018 from adopting ASC 606 when compared to the fourth quarter of 2017 was a decrease in revenue of 0.9%.

Organic growth in the fourth quarter of 2018 as compared to the fourth quarter of 2017 in our five fundamental disciplines was as follows: Advertising increased 4.4%, CRM Consumer Experience increased 4.2%, CRM Execution & Support decreased 3.7%,  Public Relations increased 1.5% and Healthcare increased 7.6%.

Across our regional markets, organic growth in the fourth quarter of 2018 as compared to the fourth quarter of 2017 was: 2.6% in the United States, 1.3% for Other North America, 2.4% in the United Kingdom,  5.7% for the Euro Markets and Other Europe, 2.9% for Asia Pacific, 1.0% for Latin America and 4.2% for the Middle East and Africa.

Operating profit in the fourth quarter of 2018 increased $0.7 million, or 0.1%, to $627.2 million from $626.5 million in the fourth quarter of 2017. Our operating margin for the fourth quarter of 2018 increased to 15.3% versus 15.0% for the fourth quarter of 2017.  The impact from adopting ASC 606 increased operating profit by $3.8 million during the fourth quarter of 2018.

For the fourth quarter of 2018, our effective income tax rate was 26.1% compared to 50.2% for the same period in 2017. The year over year difference in our effective tax rate primarily resulted from the enactment of the 2017 Tax Act, which reduced the U.S. Federal statutory tax rate from 35% to 21%.  In addition, in the fourth quarter of 2017 we included a net increase to income tax expense of $106.3 million related to the impact of the 2017 Tax Act on undistributed earnings of foreign subsidiaries and our previously reported deferred tax assets and liabilities.

Full Year

Net income – Omnicom Group Inc. for the twelve months ended December 31, 2018 increased $238.0 million, or 21.9%, to $1,326.4 million from $1,088.4 million in the same period in 2017. Diluted net income per common share for the twelve months ended December 31, 2018 increased $1.18, or 25.4%, to $5.83 per share compared to $4.65 per share for the twelve months ended December 31, 2017.  Net income – Omnicom Group Inc. and diluted earnings per common share for the twelve months ended December 31, 2018  includes a net after tax increase of $18.2 million and eight cents per share, respectively, as a result of a net gain recognized on dispositions of certain subsidiaries, partially offset by expenses in connection with certain repositioning actions and the revision of the provisional income tax expense amounts recorded in connection with the enactment of the 2017 Tax Act, all of which were recorded in the third quarter of 2018 and discussed further below. For the twelve months ended December 31, 2017, we increased income tax expense to record the net effect of the  enactment of the 2017 Tax Act, as discussed above, which resulted in a net decrease to net income – Omnicom Group Inc. and diluted net income per common share of $106.3 million and forty-five cents per share, respectively.

Worldwide revenue for the twelve months ended December 31, 2018 increased 0.1% to $15,290.2 million from $15,273.6 million in the same period of 2017.  The components of the change in revenue included an increase in revenue from the positive  foreign exchange rate impact of 0.6%, a decrease in acquisition revenue, net of disposition revenue of 2.1% and an increase in revenue from organic growth of 2.6% when compared to the same period of 2017.  The effect on revenue for the twelve months ended December 31, 2018 from adopting ASC 606 when compared to the same period of 2017 was a decrease in revenue of 1.0%.

Organic growth for the twelve months ended December 31, 2018 compared to the same period in 2017 in our five fundamental disciplines was as follows: Advertising increased 2.9%, CRM Consumer Experience increased 5.9%, CRM Execution & Support decreased 2.7%, Public Relations increased 1.8% and Healthcare increased 4.5%.

Across our regional markets, organic growth for the twelve months ended December 31, 2018 as compared to the same period of 2017 was 0.7% in the United States, 0.7% in the United Kingdom,  8.2% in the Euro Markets and Other Europe, 7.9% in Asia Pacific and 2.0% in Latin America, while Other North America decreased 3.9% and the Middle East and Africa decreased 2.9%.

Operating profit for the twelve months ended December 31, 2018 increased $49.7 million, or 2.4%, to $2,133.5 million compared to $2,083.8 million for the same period in 2017.  Our operating margin for the twelve months ended December 31, 2018 increased to 14.0% versus 13.6% for the same period in 2017.  The impact from adopting ASC 606 reduced operating profit by $6.6 million for the twelve months ended December 31, 2018.

Operating profit for the twelve months ended December 31, 2018 reflects a net pre-tax increase of $29.0 million recorded in the third quarter of 2018 from the net gain on dispositions of certain subsidiaries of $178.4 million, which arose primarily from the sale of Sellbytel, our European-based outsourced sales, service and support business, partially offset by expenses of $149.4 million in connection with repositioning actions related to the continuing improvement of the strategic position and operating efficiencies of our businesses.

Excluding the impact of the items discussed above, operating profit for the twelve months ended December 31, 2018 increased $20.7 million, or 1.0%, to $2,104.5 million from $2,083.8 million for the same period in 2017, while operating margin for the twelve months ended December 31, 2018 increased to 13.8% versus 13.6% for the same period of 2017.

For the twelve months ended December 31, 2018, our effective income tax rate was 25.6% compared to 36.9% for the same period in 2017. The year over year difference in our effective tax rate primarily resulted from the enactment of the 2017 Tax Act, as described above.  Income tax expense for the twelve months ended December 31, 2018 was also reduced due to: (a) the successful resolution of foreign tax claims during the first quarter of 2018 and (b) the impact of a lower tax rate on the net gain on dispositions of subsidiaries in the third quarter of 2018, partially offset by (c) an increase in income tax expense related to the finalization of the provisional estimate of the effect of the 2017 Tax Act made during the third quarter of 2018.

Non-GAAP Financial Measures

We use certain non-GAAP financial measures in describing our performance. Non-GAAP 2018 Adjusted results, including Adjusted Operating Profit, Adjusted Income Tax Expense and Adjusted Net Income – Omnicom Group Inc., exclude the impact of the net gain recognized on dispositions of certain subsidiaries, expenses in connection with certain repositioning actions and the revision of the provisional income tax expense amounts recorded in connection with the enactment of the 2017 Tax Act, all of which were recorded in the third quarter of 2018 and are presented in the full year results presented above and in the tables in this release. We believe that the Non-GAAP 2018 Adjusted results are useful measures for investors to understand the impact these actions had on our reported results.

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 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)

       
 

2018  (a)

 

2017  (b)

       

Revenue

$

4,086.7

 

$

4,176.6

Operating Expenses:

     

Salary and service costs

2,986.3

 

3,042.5

Occupancy and other costs

292.9

 

316.3

Costs of services

3,279.2

 

3,358.8

Selling, general and administrative expenses

119.0

 

121.5

Depreciation and amortization

61.3

 

69.8

 

3,459.5

 

3,550.1

Operating Profit

627.2

 

626.5

Interest Expense

68.3

 

61.7

Interest Income

15.2

 

11.7

Income Before Income Taxes

574.1

 

576.5

Income Tax Expense

149.7

 

289.5

Income From Equity Method Investments

5.3

 

0.8

Net Income

429.7

 

287.8

Net Income Attributed To Noncontrolling Interests

30.5

 

33.4

Net Income – Omnicom Group Inc.

399.2

 

254.4

Net income allocated to participating securities

 

(0.3)

Net income available for common shares

$

399.2

 

$

254.1

       

Net income per common share  –  Omnicom Group Inc.

     

Basic

$

1.78

 

$

1.10

Diluted

$

1.77

 

$

1.09

       

Weighted average shares (in millions)

     

Basic

224.6

 

231.2

Diluted

225.6

 

232.3

       

Dividends declared per common share

$

0.60

 

$

0.60

   

 

(a) On January 1, 2018, we adopted FASB ASC Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). ASC 606 was applied using the modified retrospective method, where the cumulative effect of initial application is recognized as an adjustment to opening retained earnings at January 1, 2018. Therefore, comparative prior periods have not been adjusted and continue 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 December 31, 2018, the adoption of ASC 606 reduced revenue by $37.6 million and increased operating profit by $3.8 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 December 31, 2018.  As required, a comparison of the current presentation under ASC 606 to the prior presentation under ASC 605 is provided below.

   

 

(b) On December 22, 2017, the 2017 Tax Act was enacted into law. The 2017 Tax Act reduced the Federal statutory tax rate from 35% to 21% effective January 1, 2018 and made several changes to existing tax law which affect our tax assets and liabilities related to previously reported taxable income.  As a result, in the fourth quarter of 2017, we recorded tax expense on accumulated earnings of our foreign subsidiaries and adjusted our previously reported deferred tax assets and liabilities to reflect the impact of the revised statutory federal rate as of the enactment date.  Income tax expense for the three months ended December 31, 2017 reflected a net increase of $106.3 million related to the impact of the 2017 Tax Act.

Omnicom Group Inc.

Impact of the Adoption of ASC 606

Three Months Ended December 31

(Unaudited) 

(Dollars in Millions)

 
 

2018 
Reported 
under 
ASC 606

 

2018 ASC 606 
Adjustments

 

2018 
Excluding 
Impact of 
Adoption of 
ASC 606

           

Revenue

$

4,086.7

 

$

37.6

 

$

4,124.3

Operating Expenses

3,459.5

 

41.4

 

3,500.9

Operating Profit

$

627.2

 

$

(3.8)

 

$

623.4

 

The above table presents the U.S. GAAP financial measures of Revenue, Operating Expenses 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.

Consolidated Statements of Income

Twelve Months Ended December 31

(Unaudited)   

(Dollars in Millions, Except Per Share Data)

 
 

2018  (a)

 

2017  (b)

       

Revenue

$

15,290.2

 

$

15,273.6

Operating Expenses:

     

Salary and service costs

11,306.1

 

11,227.2

Occupancy and other costs

1,309.6

 

1,240.8

Net gain on dispositions of subsidiaries

(178.4)

 

Costs of services

12,437.3

 

12,468.0

Selling, general and administrative expenses

455.4

 

439.7

Depreciation and amortization

264.0

 

282.1

 

13,156.7

 

13,189.8

Operating Profit

2,133.5

 

2,083.8

Interest Expense

266.4

 

248.6

Interest Income

57.2

 

49.7

Income Before Income Taxes

1,924.3

 

1,884.9

Income Tax Expense

492.7

 

696.2

Income From Equity Method Investments

8.9

 

3.5

Net Income

1,440.5

 

1,192.2

Net Income Attributed To Noncontrolling Interests

114.1

 

103.8

Net Income –  Omnicom Group Inc.

1,326.4

 

1,088.4

Net income allocated to participating securities

(0.1)

 

(1.6)

Net income available for common shares

$

1,326.3

 

$

1,086.8

       

Net income per common share  –  Omnicom Group Inc.

     

Basic

$

5.85

 

$

4.68

Diluted

$

5.83

 

$

4.65

       

Weighted average shares (in millions)

     

Basic

226.6

 

232.3

Diluted

227.6

 

233.9

       

Dividends declared per common share

$

2.40

 

$

2.25

   

 

(a) On January 1, 2018, we adopted FASB ASC Topic 606 “Revenue from Contracts with Customers” (“ASC 606”). ASC 606 was applied using the modified retrospective method, where the cumulative effect of initial application is recognized as an adjustment to opening retained earnings at January 1, 2018. Therefore, comparative prior periods have not been adjusted and continue to be reported under ASC 605 “Revenue Recognition” (“ASC 605”). The adoption of ASC 606 did not materially impact our financial position. For the twelve months ended December 31, 2018, the adoption of ASC 606 reduced revenue by $146.1 million and operating profit by $6.6 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 twelve months ended December 31, 2018.  As required, a comparison of the current presentation under ASC 606 to the prior presentation under ASC 605 is provided below.

   

 

(b) On December 22, 2017, the 2017 Tax Act was enacted into law. The 2017 Tax Act reduced the Federal statutory tax rate from 35% to 21% effective January 1, 2018 and made several changes to existing tax law which affect our tax assets and liabilities related to previously reported taxable income. As a result, in the fourth quarter of 2017, we recorded tax expense on accumulated earnings of our foreign subsidiaries and adjusted our previously reported deferred tax assets and liabilities to reflect the impact of the revised statutory federal rate as of the enactment date.  Income tax expense for the twelve months ended December 31, 2017 reflected a net increase of $106.3 million related to the impact of the 2017 Tax Act.

Omnicom Group Inc.

Impact of the Adoption of ASC 606

Twelve Months Ended December 31

 
 

(Unaudited)

(Dollars in Millions)

 
 

2018 
Reported 
under 
ASC 606

 

2018 ASC 606 
Adjustments

 

2018 
Excluding 
Impact of 
Adoption of 
ASC 606

           

Revenue

$

15,290.2

 

$

146.1

 

$

15,436.3

Operating Expenses

13,156.7

 

139.5

 

13,296.2

Operating Profit

$

2,133.5

 

$

6.6

 

$

2,140.1

 

The above table presents the U.S. GAAP financial measures of Revenue, Operating Expenses 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.

Non-GAAP Financial Measures – 2018 Excluding Net Gain on Third Quarter Dispositions, Repositioning Actions and Tax Reform Act Adjustments

Twelve Months Ended December 31

(Unaudited)            

(Dollars in Millions, Except Per Share Data)

 
 

2018 
Reported (a)

 

Non-GAAP 
Adjustments

 

Non-GAAP 
2018 
Adjusted

           

Operating Profit

$

2,133.5

 

$

29.0

 

$

2,104.5

Net Interest Expense

209.2

 

 

209.2

Income Tax Expense (b)

492.7

 

3.9

 

488.8

Income From Equity Method Investments

8.9

 

 

8.9

Net Income Attributed To Noncontrolling Interests

114.1

 

6.9

 

107.2

Net Income – Omnicom Group Inc.

$

1,326.4

 

$

18.2

 

$

1,308.2

           

The above table presents the U.S. GAAP financial measures of Operating Profit, Income Tax Expense, Net Income – Omnicom Group Inc. as reported, as well as the impact of the net gain recognized on dispositions of certain subsidiaries, certain repositioning actions and the revision of the provisional income tax expense amounts recorded in connection with the enactment of the 2017 Tax Act, all of which were recorded in the third quarter of 2018, for the twelve months ended December 31, 2018. The amounts presented in the column “Non-GAAP 2018 Adjusted” excludes these items from our results for the period presented, which are non-GAAP operating performance measures. We believe that the amounts excluding the impact of these items are useful measures for investors to understand the impact these items had on our reported results.  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.

 

 

(a) During the third quarter of 2018, we disposed of certain subsidiaries & recorded a net gain, primarily related to the sale of Sellbytel, our outsourced sales, service and support company, and we recorded expenses for certain repositioning actions related to the continued improvement of our strategic position and operating efficiencies of our businesses.  Additionally, we recorded an increase of $28.9 million in income tax expense as described in footnote (b) below. The net impact of these items increased Operating Profit by $29.0 million, Net Income – Omnicom Group Inc. by $18.2 million and diluted net income per common share – Omnicom Group Inc. $0.08 per share for the twelve months ended December 31, 2018.

   

 

(b) The 2017 Tax Act reduced the Federal statutory tax rate to 21% from 35% for tax years beginning after December 31, 2017 and made several changes to existing tax law which affect our tax assets and liabilities related to previously reported taxable income.  As a result, in the fourth quarter of 2017, we recorded tax expense on accumulated earnings of our foreign subsidiaries and adjusted our previously reported deferred tax assets and liabilities to reflect the impact of the revised statutory federal rate as of the enactment date.  Income tax expense for the twelve months ended December 31, 2017 reflected a net increase of $106.3 million related to the impact of the 2017 Tax Act. Due to the timing of the 2017 Tax Act, which was enacted on December 22, 2017, our 2017 financial statements reflected provisional amounts for these items. We revised these estimates in the third quarter of 2018 and recorded additional tax expense of  $28.9 million for the twelve months ended December 31, 2018 in compliance with the guidance provided in SEC SAB 118.

Omnicom Group Inc.

Impact of Net Gain on Third Quarter Dispositions and Repositioning Actions on Operating Expenses

Twelve Months Ended December 31, 2018

(Unaudited)

(Dollars in Millions)

 
 

Repositioning 
Actions

 

Net Gain on 
Dispositions

 

Total

           

Operating expenses (a):

         

Salary and service costs

$

73.7

 

$

 

$

73.7

Occupancy and other costs

73.5

 

 

73.5

Net gain on dispositions of subsidiaries

 

(178.4)

 

(178.4)

Costs of services

147.2

 

(178.4)

 

(31.2)

Selling, general and administrative expenses

2.2

 

 

2.2

Depreciation and amortization

 

 

Operating Expenses

$

149.4

 

$

(178.4)

 

$

(29.0)

           

 

(a) The above table identifies the impact of the pre-tax gain on dispositions of certain subsidiaries and repositioning actions we took in the third quarter of 2018 on the components of our operating expenses for the twelve months ended December 31, 2018. 

Omnicom Group Inc.

Reconciliation of Non-GAAP Financial Measures – Operating Profit

Twelve Months Ended December 31

(Unaudited)

(Dollars in Millions)

 
 

2018

 

2017

       

Net Income –  Omnicom Group Inc.

$

1,326.4

   

$

1,088.4

 

Net Income Attributed To Noncontrolling Interests

114.1

   

103.8

 

Net Income

1,440.5

   

1,192.2

 

Income From Equity Method Investments

8.9

   

3.5

 

Income Tax Expense

492.7

   

696.2

 

Income Before Income Taxes

1,924.3

   

1,884.9

 

Interest Income

57.2

   

49.7

 

Interest Expense

266.4

   

248.6

 

Operating Profit

2,133.5

   

2,083.8

 

Net gain on dispositions of subsidiaries

(178.4)

   

 

Repositioning actions

149.4

   

 

Operating Profit, Non-GAAP 2018 Adjusted

$

2,104.5

   

$

2,083.8

 
       

Revenue

$

15,290.2

   

$

15,273.6

 

Operating Profit

$

2,133.5

   

$

2,083.8

 

Operating Margin %

14.0

%

 

13.6

%

       

Revenue

$

15,290.2

   

$

15,273.6

 

Operating Profit, Non-GAAP 2018 Adjusted

$

2,104.5

   

$

2,083.8

 

Operating Margin %, Non-GAAP 2018 Adjusted

13.8

%

 

13.6

%

 

The above table reconciles the U.S. GAAP financial measures of Operating Profit and Operating Margin to the non-GAAP financial measures of Operating Profit, Non-GAAP 2018 Adjusted and Operating Margin, Non-GAAP 2018 Adjusted, which exclude the impact of the net gain recognized on dispositions of certain subsidiaries and expenses in connection with certain repositioning actions, all of which were recorded in the third quarter of 2018, for the twelve months ended December 31, 2018. We believe that the amounts excluding the impact of these items are useful measures for investors to understand the impact these actions had on our reported results. 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 – Income Tax Expense

Twelve Months Ended December 31, 2018

(Unaudited) 

(Dollars in Millions)

 
   

Twelve 
Months ended 
December 31, 
2018

     

Income Tax Expense, as reported

 

$

492.7

Add: Income tax benefit on repositioning actions, less income tax expense on 
net gain from dispositions

 

25.0

Less: Increase in income tax expense for revision of provisional estimates in 
connection with adoption of 2017 Tax Act

 

(28.9)

Income Tax Expense, Non-GAAP 2018 Adjusted

 

$

488.8

     
 

The above table reconciles the U.S. GAAP financial measure of Income Tax Expense to the non-GAAP financial measure of Income Tax Expense, Non-GAAP 2018 Adjusted, which excludes the impact of the income tax expense recorded in relation to the net gain recognized on dispositions of certain subsidiaries, the income tax benefit from expenses in connection with certain repositioning actions and the revision of the provisional income tax expense amounts recorded in connection with the enactment of the 2017 Tax Act, all which were recorded in the third quarter of 2018, for the twelve months ended December 31, 2018.  We believe that the amount excluding the impact of these items is a useful measure for investors to understand the impact these actions had on our reported results. 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 – Net Income – Omnicom Group Inc.

Twelve Months Ended December 31, 2018

(Unaudited)        

(Dollars in Millions)

 
   

Twelve 
Months ended 
December 31, 
2018

     

Net Income –  Omnicom Group Inc., as reported

 

$

1,326.4

     

Net gain on dispositions, before income tax expense

 

(178.4)

Repositioning actions – Incremental Severance and other items, before income 
tax expense

 

75.9

     

Repositioning actions – Lease terminations, before income tax expense

 

73.5

Income tax benefit on repositioning actions, less income tax expense on net 
gain from dispositions

 

(25.0)

     

Allocation of above items to non-controlling interests

 

6.9

Increase in income tax expense for revision of provisional estimates in 
connection with adoption of 2017 Tax Act

 

28.9

Net Income –  Omnicom Group Inc., Non-GAAP 2018 Adjusted

 

$

1,308.2

     

The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to the non-GAAP   financial measure of Net Income – Omnicom Group Inc., Non-GAAP 2018 Adjusted, which excludes the impact of the net gain recognized on dispositions of certain subsidiaries, expenses in connection with certain repositioning actions and the revision of the provisional income tax expense amounts recorded in connection with the enactment of the 2017 Tax Act, all which were recorded in the third quarter of 2018, for the twelve months ended December 31, 2018.  We believe that the amount excluding the impact of these items is a useful measure for investors to understand the impact these actions had on our reported results. 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.

 

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SOURCE Omnicom Group Inc.

Omnicom Group Inc. Increases Stock Dividend by 8.3% to $0.65 Per Share

NEW YORK, Feb. 11, 2019 /PRNewswire/ — The Board of Directors of Omnicom Group Inc. (NYSE: OMC) increased the corporation’s quarterly cash dividend to $0.65 per common share, or $2.60 per share of common stock on an annual basis. This represents an 8.3% increase versus the prior quarterly dividend of $0.60 per share, or $2.40 on an annual basis. The increased dividend is payable on April 9, 2019 to Omnicom Group common shareholders of record at the close of business on March 11, 2019.

Omnicom Group Logo (PRNewsfoto/Omnicom Group)

 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. 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/omnicom-group-inc-increases-stock-dividend-by-8-3-to-0-65-per-share-300793471.html

 SOURCE Omnicom Group Inc.

For The Second Year In A Row, BBDO Tops The Drum’s Big Won Rankings

Named the most awarded global agency network across all marketing communications. BBDO New York is ranked the world’s top agency.

NEW YORK, Feb. 7, 2019 – For the second year in a row, BBDO Worldwide has topped The Drum’s Big Won Rankings as the world’s most awarded agency network across all marketing communication disciplines.  The 2018 Rankings were based on submissions involving more than 3,600 pieces of work from 1,721 agencies around the world.  The top agency spot went to BBDO New York.  It’s the second year running that an individual BBDO agency has ranked number one.

In all, five BBDO agencies finished among the top 20 most creative agencies.  In addition to BBDO New York, CHE Proximity in Melbourne was ranked #9, AMVBBDO London was #12, EnergyBBDO Chicago was #15 and AlmapBBDO Brazil was #18.

BBDO’s performance was driven by multiple campaigns from agencies around the world, which were among the Top 20 most celebrated campaigns of the year.  These included “Prescribed to Death,” created by EnergyBBDO for the National Safety Council (#6); “The Talk” from BBDO New York for Procter & Gamble (#7); “Live Looper” from BBDO New York for Downtown Record’s The Academic (#9); and “Trash Isles” from AMVBBDO (#13) for LADbible/The Plastic Ocean’s Foundation.

Gordon Young, editor in chief of The Drum, commented, “The Drum’s Big Won Rankings are intended to point out advertising’s most successful companies and creatives.  And once again, BBDO has proven itself to be a creative force, with multiple agencies from multiple regions contributing multiple campaigns for multiple clients to these results.  We congratulate BBDO on this achievement.”

Added David Lubars, Chief Creative Officer, BBDO Worldwide, “We think of ourselves as a global boutique.  In other words, quick, nimble, innovative and collaborative, rather than a big stupid agency.  Operating this way, combined with our size and discipline, makes us unique, makes us a company that reaches a high creative and business plane year after year.  Which is why I am especially proud that BBDO has topped The Drum Big Won Network rankings for the second year in a row.”

David Lubars, in fact, was ranked the most awarded Chief Creative Officer in the World, followed by Greg Hahn, the Chief Creative Officer of BBDO New York.  Andres Ordonez, CCO of EnergyBBDO Chicago, and Ant White, CCO of CHE Proximity, were also among the Top 20 (at #17 and #18, respectively).  Five other BBDOers were ranked among the top Executive Creative Directors in the world.

BBDO’s parent company, Omnicom Group, was ranked the #1 holding company in the world.

Further details regarding The Drum’s Big Won Rankings can be found here.

In 2017, The Drum acquired The Directory Big Won Rankings, an annual listing of the most awarded campaigns, people and countries.  The Big Won was launched in 2003 and, over the years, evolved to cover all forms of marketing communications including direct marketing, advertising, and promotional and above the line work, as well as digital.  During this time, BBDO topped The Directory Big Won as the most awarded agency network in the world a record 12 times.

ABOUT BBDO
BBDO’s mantra is “The Work. The Work. The Work.” Every day, BBDO people in 289 offices in 81 countries work day by day, job by job and client by client to create and deliver the world’s most compelling commercial content

BBDO Worldwide is part of Omnicom Group Inc. (NYSE: OMC) (www.omnicomgroup.com), a leading global marketing and corporate communications company.

SOURCE BBDO Worldwide

Omnicom Group Schedules Fourth Quarter and Full Year 2018 Earnings Release and Conference Call

NEW YORK, Feb. 7, 2019 /PRNewswire/ — Omnicom Group (NYSE: OMC) will publish its fourth quarter and full year 2018 results on Tuesday, February 12, 2019.  The company will host a conference call to review fourth quarter and full year 2018 results on Tuesday, February 12, 2019 at 8:30 AM (ET).  The dial-in numbers for the conference call are (800) 230-1059 (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.

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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.

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SOURCE Omnicom Group

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