July 2021 - Omnicom Group

DDB Latina Is Named Best Creative Network Of The Year At Crema Ranking

Posted on July 30, 2021July 30, 2021 by Amanda Granath

MIAMI, July 30, 2021 /PRNewswire-HISPANIC PR WIRE/ — DDB Latina has been named Best Network of the Year for the second time in the last eight months according to the Crema Ranking, organized by Adlatina. The publication takes into account both creative results and effectiveness rankings at international and regional festivals including Cannes, Clio, One Show, D&AD, El Ojo, and Effie Latam.

It is a milestone win for DDB Latina who has been able to achieve greatness even in such an atypical year as 2020. Africa DDB, DDB Colombia, and Fahrenheit DDB were in the top 30 of the best agencies in their region, while Paradais DDB Ecuador, DDB Spain, and Alma DDB ranked in the top 10 of their respective countries.

Juan Carlos Ortiz, President & CEO of DDB Latina, assures: “Today, our business is clearer more than ever, and it is definitely connected to the conclusions left by the last edition of the Davos Economic Forum event: what CEOs are looking for is creativity. At DDB Latina, we know creativity is related to culture, people who believe in that culture and talent, the creation of creative cases and products that respond to culture and, obviously, to growth and outstanding reputation or business results. Who has enough tools to play in that field will be able to compete in this new world.”

The top three networks recognized by the Crema Ranking were DDB Latina in first place with 3,951 total points, David in second place with 3,890 and, BBDO in third place with 2,636.

“These results reaffirm that even though there are moments of success and difficulties in life, at DDB Latina, we believe and love what we do. This context has been really important to show that we have the right team, with the necessary principles and tools to move forward, and we are expectant of what the future brings,” Ortiz concluded.

You can preview the full year book here: https://www.adlatina.com/crema/2020/

ABOUT DDB LATINA GROUP

DDB Latina is the leading communications group in the Latin markets around the world. It was a pioneer in the industry for uniting the Latin American, US Multicultural, and Spanish markets with a unique vision inspired by culture, not geography. Through its companies DDB, Africa DDB, Alma DDB, Tribal Worldwide, TRACK, and TracyLocke, DDB Latina develops innovative business solutions for its clients, based on a deep understanding of culture and data. It believes in the merge of strategy, technology, and creativity to create innovative ideas that generate effective business results for the brands it works with,including some global and regional clients in a wide range of industries.

It has been named Ibero-America’s Most Creative Network at El Ojo de Iberoamérica, the Crema Ranking in 2017 and 2019, and most recently at El Ojo and Crema Ranking 2020.

ABOUT DDB WORLDWIDE

DDB Worldwide (www.ddb.com) is one of the world’s largest and most influential advertising and marketing networks. DDB has been named 2021 Network of the Year by D&AD and ADC. It has also earned recognition by the Cannes International Festival of Creativity and the industry’s leading advertising publications and awards shows. WARC has listed DDB as one of the Top 3 Global Networks for 12 of the last 15 years. The agency’s clients include Molson Coors, Volkswagen, McDonald’s, Unilever, Mars, Johnson & Johnson, and the U.S. Army, among others. Founded in 1949, DDB is part of the Omnicom Group (NYSE: OMC) and consists of more than 200 offices in over 90 countries, with its flagship office in New York, NY. 

ABOUT OMNICOM

Omnicom Group Inc. (NYSE – OMC) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and other specialty communications services to over 5,000 clients in more than 100 countries.

CONTACT:
Angela Henao
Director of Communications & PR | DDB Latina Group
Email: [email protected]
Phone: +1 (305) 341 2563

SOURCE DDB Latina

Omnicom Group Inc. Declares Dividend

Posted on July 21, 2021July 21, 2021 by Amanda Granath

TracyLocke Named la Madeleine Strategic and Creative Agency, Expanding Food Service Center of Excellence

Posted on July 21, 2021July 21, 2021 by Amanda Granath

Haygarth U.S. also named In-Store Marketing and Merchandising Agency for CKE Restaurants, growing Omnicom Commerce Group’s Food Service Portfolio

DALLAS, July 21, 2021 /PRNewswire/ — TracyLocke, leading commerce and communications agency, was named Strategic and Creative Agency of Dallas-based restaurant chain la Madeleine. This win supports the continued growth of TracyLocke’s food service center of excellence, which currently includes work with PepsiCo, Pizza Hut and Godiva. TracyLocke sister agency, Haygarth U.S., was also named In-Store Marketing and Merchandising Agency for CKE Restaurants.

TracyLocke kicked off work with la Madeleine immediately, providing full-service guest marketing strategy and execution, including development of updated branded point-of-sale items and digital and social media strategy and management for all 86 locations across the U.S.

“It’s a very exciting time for our brand. 2021 has presented us with a lot of new opportunity for growth and brand awareness,” said Sheryl Fox, Chief Operating Officer for la Madeleine. “After observing and experiencing Tracy Locke’s Buy Design strategy, we knew they could help take us places. Since the beginning of the partnership, we’ve hit the ground running making headway on many exiting initiatives including the branding strategy for our new Express cafes, our retail line expansion and overall merchandise excellence program.”

Haygarth U.S. also began its partnership with CKE Restaurants, supporting point-of-sale, food photography, digital and printed menus, and all merchandising for Carl’s Jr. and Hardee’s with approximately 3,500 locations nationwide.

“After a highly competitive search, we are excited about moving forward with Haygarth U.S. as our new merchandising agency,” said Patty Trevino, Senior Vice President of Marketing for CKE Restaurants. “We were very impressed with their understanding of our brands, our guests and the style of work they brought forth, especially as we transition to a more digitally facing era for our customers. We look forward to seeing how they bring our innovative and craveable menu items to life for our guests in their materials.”

“We’re excited to work with both la Madeleine and CKE Restaurants to help shape each brand’s updated strategy and creative,” said Stephen Miller, Chief Marketing Officer for TracyLocke and Haygarth U.S. “We continue to focus on strengthening our food service center of excellence across both agencies.”

About TracyLocke:
TracyLocke is an award-winning global agency that leverages insightful creativity and design thinking to drive commerce. With offices in North America and around the world, its employees are a blend of talented individuals with unique strengths, experiences and backgrounds. TracyLocke is part of the Omnicom Commerce Group and partners with clients such as PepsiCo, SC Johnson, Diageo, Pizza Hut, Godiva, Samsung, and the Dollar General Literacy Foundation. For more information about TracyLocke, visit www.tracylocke.com.

About Haygarth:
Haygarth is an award-winning creative agency that believes in the power of big ideas to make brands easy to love and simple to buy. Haygarth operates in key markets around the world including North America, the UK and Germany. Haygarth partners with leading brands such as Vodafone, Brown-Forman and Kellogg’s. Haygarth is part of the Omnicom Commerce Group (OCG), Omnicom’s center of excellence for commerce, shopper and retail innovation.
For more information visit www.haygarth.co.uk.

About Omnicom Commerce Group:
Omnicom Commerce Group (OCG) is a global community of four award-winning commerce agencies, working with brands and retailers to offer best in class consultancy, creativity and capability focused on driving increased conversion and transaction. OCG’s priority is to address the need for innovative multi-channel commerce expertise in the rapidly evolving world of retail and shopping. OCG encompasses 2,500 people across 19 markets – for more information please visit www.omnicomcommercegroup.com. OCG is part Omnicom Group Inc. (NYSE: OMC), a leading global marketing and corporate communications company.

SOURCE TracyLocke

Omnicom Group Reports Second Quarter and Year-to-Date 2021 Results

Posted on July 20, 2021July 20, 2021 by Katie Beaule

NEW YORK, July 20, 2021 — Omnicom Group Inc. (NYSE: OMC) today announced net income – Omnicom Group Inc. for the second quarter of 2021 of $348.2 million as compared to a net loss – Omnicom Group Inc. of $24.2 million in the second quarter of 2020. Diluted net income per share for the second quarter of 2021 was $1.60 per share compared to a diluted net loss per share of $0.11 in the second quarter of 2020. Net income – Omnicom Group Inc. and diluted net income per share for the second quarter of 2021 include the gain on a disposition of a subsidiary and a loss on the early retirement of our 2022 Senior Notes, of $31.0 million and $0.14 per share, respectively, as discussed below.

Net loss – Omnicom Group Inc. and diluted net loss per share – Omnicom Group Inc. in the second quarter of 2020 included a net after-tax decrease of $223.1 million and $1.03 per share, respectively, as a result of COVID-19 repositioning costs.

Omnicom’s worldwide revenue in the second quarter of 2021, which continued to improve from the negative effects of the COVID-19 pandemic, increased 27.5% to $3,571.6 million from $2,800.7 million in the second quarter of 2020. The components of the change in revenue included an increase in revenue from the positive impact of foreign currency translation of 5.4%, a decrease in acquisition revenue, net of disposition revenue of 2.2% and an increase in revenue from organic growth of 24.4%. Since the onset of the COVID-19 pandemic, the second quarter of 2020 had the most significant negative impact on our revenue.

Organic growth in the second quarter of 2021 as compared to the second quarter of 2020 increased across all of our fundamental disciplines. The percentage increases were as follows: 29.8% for Advertising, 25.0% for CRM Precision Marketing, 15.2% for CRM Commerce and Brand Consulting, 53.0% for CRM Experiential, 22.7% for CRM Execution & Support, 15.1% for Public Relations and 4.5% for Healthcare.

Across all of our regional markets, organic growth in the second quarter of 2021 as compared to the second quarter of 2020 was as follows: 19.9% for the United States, 37.1% for Other North America, 23.8% for the United Kingdom, 34.5% for the Euro Markets & Other Europe, 27.9% for Asia Pacific, 20.8% for Latin America and 42.8% for the Middle East & Africa.

Operating profit increased $505.9 million to $568.4 million compared to $62.5 million during the second quarter of 2020. Our operating margin for the second quarter of 2021 increased to 15.9% versus 2.2% for the second quarter of 2020.

Operating profit in the second quarter of 2021 reflects a pre-tax increase of $50.5 million arising from the gain on disposition of ICON, a specialty media business, during the quarter. The sale of ICON is part of our continuing realignment of our portfolio of businesses and is consistent with our strategic plan and investment priorities. The disposition is not expected to have a material impact on our ongoing results of operations or financial position.

Operating profit in the second quarter of 2020 included a pre-tax decrease of $277.9 million due to COVID-19 repositioning costs, comprised of incremental severance charges, right-of-use asset impairments and other costs.

Interest expense in the second quarter of 2021 increased $26.6 million due to the early retirement of our 2022 Senior Notes. The retirement reduced our leverage, which had increased from the issuance of $600 million of Senior Notes due 2030 in the second quarter of 2020 to increase our liquidity in response to the pandemic.

For the second quarter of 2021, our effective income tax rate decreased period-over-period to 24.9%. The lower rate for the second quarter of 2021 was predominantly the result of a nominal tax applied against the book gain on the disposal of ICON that resulted from excess tax over book basis. Additionally, the prior year effective tax rate reflects the non-deductibility in certain jurisdictions of a portion of the COVID-19 repositioning charges recorded in the second quarter of 2020, which increased our rate.

Year-to-Date

Net income – Omnicom Group Inc. for the six months ended June 30, 2021 increased $402.0 million to $636.0 million compared to $234.0 million in the same period in 2020. Diluted net income per share – Omnicom Group Inc. for the six months ended June 30, 2021 increased $1.85 to $2.93 per share compared to $1.08 per share for the six months ended June 30, 2020. Net income – Omnicom Group Inc. and diluted net income per share for the six months ended June 30, 2021 include the gain on a disposition of a subsidiary and a loss on the early retirement of our 2022 Senior Notes, of $31.0 million and $0.14 per share, respectively, as discussed below.

Net income – Omnicom Group Inc. and diluted net income per share – Omnicom Group Inc. for the six months ended June 30, 2020 included a net after-tax decrease of $223.1 million and $1.03 per share, respectively, as a result of COVID-19 repositioning costs incurred during the second quarter of 2020, as previously discussed above.

Omnicom’s worldwide revenue for the six months ended June 30, 2021 increased 12.7% to $6,998.6 million from $6,207.6 million in the same period of 2020. The components of the change in revenue included an increase in revenue from the positive impact of foreign currency translation of 4.0%, a decrease in acquisition revenue, net of disposition revenue of 1.2% and an increase in revenue from organic growth of 10.0% when compared to the same period of 2020.

Organic growth for the six months ended June 30, 2021 compared to the same period in 2020 in our fundamental disciplines was as follows: Advertising increased 13.9%, CRM Precision Marketing increased 15.8%, CRM Commerce and Brand Consulting increased 4.7%, CRM Experiential decreased 1.0%, CRM Execution & Support increased 1.6%, Public Relations increased 5.3% and Healthcare increased 2.3%.

Across all of our regional markets, organic growth in the six months ended June 30, 2021 as compared to the same period of 2020 was as follows: 8.5% for the United States, 14.0% for Other North America, 6.7% for the United Kingdom, 13.5% for the Euro Markets & Other Europe, 14.4% for Asia Pacific, 7.7% for Latin America and 10.1% for the Middle East & Africa.

Operating profit increased $551.1 million, or 114.2%, to $1,033.8 million from $482.7 million for the six months ended June 30, 2020. Our operating margin for the six months ended June 30, 2021 increased to 14.8% versus 7.8% for the same period of 2020.

Operating profit for the six months ended June 30, 2021 reflects a pre-tax increase of $50.5 million arising from the gain on disposition of ICON during the second quarter of 2021.

Operating profit for the six months ended June 30, 2020 included a pre-tax decrease of $277.9 million due to COVID-19 repositioning costs, as discussed previously.

Interest expense for the six months ended June 30, 2021 increased $26.6 million due to the early retirement of our 2022 Senior Notes, as discussed previously.

Our effective tax rate for the six months ended June 30, 2021 decreased period-over-period to 25.8% from 30.6%. In connection with the sale of ICON in 2021, we recorded a gain of $50.5 million. The lower rate for 2021 was predominantly the result of a nominal tax applied against the book gain on the disposal of ICON that resulted from excess tax over book basis. Additionally, the prior year effective tax rate reflects the non-deductibility in certain jurisdictions of a portion of the COVID-19 repositioning charges recorded in the second quarter of 2020, which increased our rate. Our effective tax rate for the six months ended June 30, 2021 would have been in line with our expectations except for the nominal tax on the pre-tax ICON gain of $50.5 million.

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 EBITA and EBITA Margin are useful measures for investors to evaluate the performance of our business.

For the second quarter of 2021, EBITA increased $505.7 million, or 602.7%, to $589.6 million from $83.9 million in the second quarter of 2020. Our EBITA margin increased to 16.5% for the second quarter of 2021 versus 3.0% in the second quarter of 2020.

For the six months ended June 30, 2021, EBITA increased 104.8%, or $550.0 million, to $1,074.9 million from $524.9 million for the same period in 2020. Our EBITA margin increased to 15.4% for the six months ended June 30, 2021 versus 8.5% when compared to the six months ended June 30, 2020.

EBITA for the second quarter and six months ended June 30, 2021 reflects a pre-tax increase of $50.5 million arising from the gain on disposition of ICON. EBITA for the second quarter and six months ended June 30, 2020 reflects a pre-tax decrease of $277.9 million due to COVID-19 repositioning costs, comprised of incremental severance charges, right-of-use asset impairments and other costs.

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.

COVID-19 Business Update

We experienced an improvement in our business in the second quarter of 2021 as compared to the second quarter of 2020, primarily because the recovery from the COVID-19 pandemic that began in the first quarter 2021 continued into the second quarter. The second quarter of 2020 reflected the most negative impact on our businesses since the onset of the pandemic. The COVID-19 pandemic did not significantly impact our major markets and businesses until late in the first quarter of 2020 and the improvement from the pandemic in 2021 compared to the prior year, was significantly greater in the second quarter.

Global economic conditions will continue to be volatile as long as the COVID-19 pandemic remains a public health threat, including as a result of new information concerning the severity of the pandemic, government actions to mitigate the effects of the pandemic in the near-term, and the resulting impact on our clients’ spending plans. We expect global economic performance and the performance of our businesses to vary by geography and discipline until the impact of the COVID-19 pandemic on the global economy subsides.

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 description 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.

Revenue by Discipline

Effective January 1, 2021, we realigned the classification of certain services primarily within our CRM Consumer Experience discipline. As a result, our CRM discipline is now grouped into four categories: CRM Precision Marketing which includes our precision marketing and digital/direct marketing agencies; CRM Commerce and Brand Consulting that is primarily comprised of Omnicom Commerce Group, including our shopper marketing businesses, and Omnicom Brand Consulting agencies; CRM Experiential, which includes our experiential marketing agencies and events businesses; and CRM Execution & Support, which includes field marketing, merchandising and point of sale, as well as other specialized marketing and custom communications services.

Forward-looking Statements

Certain statements in this press release including those related to COVID-19 constitute forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, based on current beliefs of the Company’s management as well as assumptions made by, and information currently available to, the Company’s management. Forward-looking statements may be accompanied by words such as “aim,” “anticipate,” “believe,” “plan,” “could,” “should,” “would,” “estimate,” “expect,” “forecast,” “future,” “guidance,” “intend,” “may,” “will,” “possible,” “potential,” “predict,” “project” or similar words, phrases or expressions.

Forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. You should carefully consider this and the other risks and uncertainties that may affect the Company’s business, including those described in Item 1A, “Risk Factors” and Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements.

Conference Call

Omnicom will host a conference call to review the second quarter 2021 financial results on Tuesday, July 20, 2021 at 8:30 a.m. EDT. Participants can listen to the conference call by dialing (844) 291-6362 (domestic) or (234) 720-6995 (international), along with access code 1468163. The call will also be simulcast and archived on our website at: https://investor.omnicomgroup.com/investor-relations/news-events-and-filings.

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 70 countries. Follow us on Twitter for the latest news.

Omnicom Group Inc.

Consolidated Statements of Income

Three Months Ended June 30

(Unaudited)

(Dollars in Millions, Except Per Share Data)

2021^(a)	2020^(b)^(c)
Revenue	$3,571.6	$2,800.7
Operating Expenses:
Salary and service costs	$2,603.1	$ 2,031.1
Occupancy and other costs	293.9	290.0
Gain on disposition of subsidiary	(50.5)	—
COVID-19 repositioning costs	—	277.9
Costs of services	2,846.5	2,599.0
Selling, general and administrative expenses	103.2	82.1
Depreciation and amortization	53.5	57.1
	3,003.2	2,738.2
Operating Profit	568.4	62.5
Interest Expense	80.3	53.7
Interest Income	6.8	6.5
Income Before Income Taxes	494.9	15.3
Income Tax Expense	123.2	21.9
Loss From Equity Method Investments	(0.1)	(7.8)
Net Income (Loss)	371.6	(14.4)
Net Income Attributed To Noncontrolling Interests	23.4	9.8
Net Income (Loss) – Omnicom Group Inc.	$348.2	$(24.2)
Net Income (Loss) Per Share – Omnicom Group Inc.
Basic	$1.62	$(0.11)
Diluted	$1.60	$(0.11)
Weighted average shares (in millions)
Basic	215.4	214.9
Diluted	217.1	215.4
Dividends Declared Per Common Share	$0.70	$0.65


(a)	During the second quarter of 2021, we recorded a gain on the disposition of subsidiaries, which increased Operating Profit and Net Income – Omnicom Group Inc. by $50.5 million for the three months ended June 30, 2021. Additionally, Net Interest Expense during the second quarter of 2021 included a $26.6 million charge related to the early extinguishment of our 2022 Senior Notes, which decreased Net Income – Omnicom Group Inc. by $19.5 million for the three months ended June 30, 2021. The net impact of these items increased Earnings per Share – Diluted by $0.14 per share for the three months ended June 30, 2021.

(b)	During the second quarter of 2020, we recorded expenses for certain repositioning actions related to the realignment of our businesses in reaction to the COVID-19 pandemic. The impact of these items decreased Operating Profit by $277.9 million, Net Income – Omnicom Group Inc. by $223.1 million and Earnings per Share – Diluted by $1.03 per share for the three months ended June 30, 2020.

(c)	Salary and service costs for the second quarter of 2020 includes the reduction of $49.2 million in operating expenses related to reimbursements and tax credits under government programs in several countries where we have operations.

Omnicom Group Inc.

Consolidated Statements of Income

Six Months Ended June 30

(Unaudited)

(Dollars in Millions, Except Per Share Data)

2021^(a)	2020^(b)^(c)
Revenue	$6,998.6	$6,207.6
Operating Expenses:
Salary and service costs	$5,148.1	$ 4,564.4
Occupancy and other costs	585.5	599.6
Gain on disposition of subsidiary	(50.5)	—
COVID-19 repositioning costs	—	277.9
Costs of services	5,683.1	5,441.9
Selling, general and administrative expenses	174.9	168.9
Depreciation and amortization	106.8	114.1
	5,964.8	5,724.9
Operating Profit	1,033.8	482.7
Interest Expense	134.1	112.2
Interest Income	13.1	19.2
Income Before Income Taxes	912.8	389.7
Income Tax Expense	235.2	119.3
Loss From Equity Method Investments	(0.1)	(13.0)
Net Income	677.5	257.4
Net Income Attributed To Noncontrolling Interests	41.5	23.4
Net Income – Omnicom Group Inc.	$636.0	$234.0
Net Income Per Share – Omnicom Group Inc.
Basic	$2.95	$1.08
Diluted	$2.93	$1.08
Weighted average shares (in millions)
Basic	215.5	215.8
Diluted	217.0	216.5
Dividends Declared Per Common Share	$1.40	$1.30


(a)	During the second quarter of 2021, we recorded a gain on the disposition of subsidiaries, which increased Operating Profit and Net Income – Omnicom Group Inc. by $50.5 million for the six months ended June 30, 2021. Additionally, Net Interest Expense during the second quarter of 2021 included a $26.6 million charge related to the early extinguishment of our 2022 Senior Notes, which decreased Net Income – Omnicom Group Inc. by $19.5 million for the six months ended June 30, 2021. The net impact of these items increased Earnings per Share – Diluted by $0.14 per share for the six months ended June 30, 2021.

(b)	During the second quarter of 2020, we recorded expenses for certain repositioning actions related to the realignment of our businesses in reaction to the COVID-19 pandemic. The impact of these items decreased Operating Profit by $277.9 million, Net Income – Omnicom Group Inc. by $223.1 million and Earnings per Share – Diluted by $1.03 per share for the six months ended June 30, 2020.

(c)	Salary and service costs for the six months ended June 30, 2020 includes the reduction of $49.2 million in operating expenses related to reimbursements and tax credits under government programs in several countries where we have operations.

Omnicom Group Inc.

Detail of Operating Expenses

Three Months Ended June 30

(Unaudited)

(Dollars in Millions)

2021	2020
Operating Expenses:
Salary and service costs
Salary and related service costs	$1,721.7	$1,424.7
Third-party service costs	881.4	606.4
Occupancy and other costs	293.9	290.0
Gain on disposition of subsidiary	(50.5)	—
COVID-19 repositioning costs	—	277.9
Costs of services	2,846.5	2,599.0
Selling, general and administrative expenses	103.2	82.1
Depreciation and amortization	53.5	57.1
Total Operating Expenses	$3,003.2	$2,738.2

Omnicom Group Inc.

Detail of Operating Expenses

Six Months Ended June 30

(Unaudited)

(Dollars in Millions)

2021	2020
Operating Expenses:
Salary and service costs
Salary and related service costs	$3,370.9	$3,067.1
Third-party service costs	1,777.2	1,497.3
Occupancy and other costs	585.5	599.6
Gain on disposition of subsidiary	(50.5)	—
COVID-19 repositioning costs	—	277.9
Costs of services	5,683.1	5,441.9
Selling, general and administrative expenses	174.9	168.9
Depreciation and amortization	106.8	114.1
Total Operating Expenses	$5,964.8	$5,724.9

Omnicom Group Inc.

Reconciliation of Non-GAAP Financial Measures – EBITA

Three Months Ended June 30

(Unaudited)

(Dollars in Millions)

2021	2020
Net Income (Loss) – Omnicom Group Inc.	$348.2	$(24.2)
Net Income Attributed To Noncontrolling Interests	23.4	9.8
Net Income (Loss)	371.6	(14.4)
Loss From Equity Method Investments	(0.1)	(7.8)
Income Tax Expense	123.2	21.9
Income Before Income Taxes	494.9	15.3
Interest Income	6.8	6.5
Interest Expense	80.3	53.7
Operating Profit	568.4	62.5
Add back: Amortization of intangible assets	21.2	21.4
Earnings before interest, taxes and amortization of intangible assets (“EBITA”)	$589.6	$83.9
Revenue	$3,571.6	$2,800.7
EBITA	$589.6	$83.9
EBITA Margin %	16.5 %	3.0 %

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 intangible assets) 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 EBITA and EBITA Margin are useful measures for investors to evaluate the performance of our business. 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 – EBITA

Six Months Ended June 30

(Unaudited)

(Dollars in Millions)

2021	2020
Net Income – Omnicom Group Inc.	$636.0	$234.0
Net Income Attributed To Noncontrolling Interests	41.5	23.4
Net Income	677.5	257.4
Loss From Equity Method Investments	(0.1)	(13.0)
Income Tax Expense	235.2	119.3
Income Before Income Taxes	912.8	389.7
Interest Income	13.1	19.2
Interest Expense	134.1	112.2
Operating Profit	1,033.8	482.7
Add back: Amortization of intangible assets	41.1	42.2
Earnings before interest, taxes and amortization of intangible assets (“EBITA”)	$1,074.9	$524.9
Revenue	$6,998.6	$6,207.6
EBITA	$1,074.9	$524.9
EBITA Margin %	15.4 %	8.5 %

Omnicom names Karen van Bergen Chief Environmental Sustainability Officer

Posted on July 15, 2021July 15, 2021 by Amanda Granath

NEW YORK, July 15, 2021 /PRNewswire/ — Omnicom Group (NYSE: OMC) today announced the appointment of Karen van Bergen to Chief Environmental Sustainability Officer, reporting to John Wren, Chairman and CEO, Omnicom. In this role, van Bergen will be responsible for overseeing the company’s climate change initiatives and processes which include setting measurable goals, policies and partnerships that will reduce its carbon footprint. This new position will be in addition to her current role as EVP and Dean of Omnicom University.

Van Bergen’s appointment underpins Omnicom’s on-going effort to reduce the environmental impact of its operations across its global networks and agencies. Nearly five years ago, the company established sustainability goals aimed at reducing its energy use while increasing use of renewable resources. With these goals targeted for completion by 2023, van Bergen will work with executive leadership on developing a climate action plan with the goal of further reducing Omnicom’s carbon footprint.

In addition to these internal goals, the company remains a signatory to the United Nations Global Compact, which commits to undertaking initiatives to promote greater environmental responsibility and encourage the diffusion of environmentally friendly technologies. Moving forward, Omnicom has committed to the Science Based Targets Initiative, which audits participating companies on their emissions goals and evaluates whether they are in-line with the global mandate to keep warming below 1.5 degrees.

Omnicom, in line with many of its peers, has also committed to joining industry initiatives that will serve as catalysts for change. Several of its UK agencies have joined Ad Net Zero, the U.K. advertising industry’s initiative to achieve real net zero carbon emissions from the development, production and media placement of advertising by the end of 2030. Omnicom is also a founding member of the #ChangeTheBrief Alliance, a flagship initiative that calls for the agencies and clients to harness the power of their advertising to promote sustainable consumer choices and behaviors.

“By 2023, we will have exceeded our current sustainability goals and are committed to developing and implementing an even more ambitious climate action plan,” said John Wren, Chairman and CEO of Omnicom. “Karen van Bergen is just the right leader for this effort given her long tenure with Omnicom and excellent previous experience with environmental initiatives at multinational corporations. Under her leadership, I have no doubt we will continue to raise the bar in minimizing the environmental impact of our global operations.”

Environmental sustainability has played a role in several of van Bergen’s previous positions. Earlier in her career, she led environmental policy and stakeholder dialogue for Outboard Marine Corporation in Europe. When she was later at McDonald’s Europe, she created and led the first Environment department, working on sustainable packaging, minimizing environmental impact and stakeholder engagement. She also led the business/NGO coalition to initiate the first moratorium on rainforest deforestation in Brazil. Furthermore, she headed up the Environment Subcommittee at the American Chamber of Commerce in Europe for four years, leading business dialogue with the European Union (Commission, Council, Parliament) and other key stakeholders.

During her time at Omnicom, van Bergen has used her expertise to counsel a wide variety of clients on sustainability policies, communications strategies and stakeholder engagement. For the past four years, she has also served as the Strategy Officer for Omnicom with the World Economic Forum, which developed its own framework for ESG reporting that Omnicom follows.

“Environmental sustainability has been a priority for businesses for decades, but there is a renewed energy that is urging more action and proactivity from companies worldwide,” said van Bergen. “Omnicom is ready to do its part to create a better future, and I am pleased to assist in identifying, implementing and expanding our sustainability initiatives. As an industry with worldwide influence through advertising and communications, it is imperative that we set an example and be a part of the solution.”

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 70 countries. Follow us on Twitter for the latest news.

Ketchum Promotes Partner Amanda Kowal Kenyon to New Global Role of Chief Employee Experience Officer

Posted on July 14, 2021July 14, 2021 by Amanda Granath

Veteran Organizational Effectiveness and Change Management Consultant Joins Ketchum Executive Team

NEW YORK, July 14, 2021 /PRNewswire/ — Amanda Kowal Kenyon, partner and chief organizational effectiveness officer for leading global communications consultancy Ketchum, today takes on the newly created role of chief employee experience officer. With this elevated role, Kowal Kenyon brings her deep expertise in management consulting and organizational psychology to the firm’s global executive leadership team, reporting to president and CEO Mike Doyle.

In this new role, Kowal Kenyon will partner with Ketchum’s regional and local HR leaders to carry out the firm’s global talent strategy and vision. As leader of the global talent function, she will focus on driving consistency in roles and responsibilities, career pathing, performance evaluation, and rewards and recognition. She will partner with Ketchum’s DE&I champions and leaders to continue advancing the firm’s intentional work on its path toward greater inclusion. Additionally, Kowal Kenyon will advise on recruitment strategies in partnership with talent acquisition leaders and Ketchum’s three regional presidents, and she will continue to oversee the firm’s global organizational effectiveness and learning and development functions.

“Amanda has been a pivotal part of the Ketchum community for nearly 25 years, and this elevation reflects the tremendous value and energy she brings to the firm every day,” said Doyle. “Amanda is a true champion and advocate for our people, and she’s been an important counselor to me and my executive team for many years. I am thrilled to introduce this new role that’s focused entirely on the employee experience at Ketchum – our people will benefit tremendously from Amanda’s energy and expertise in this critical position.”

Kowal Kenyon was named Ketchum’s first chief organizational effectiveness officer in 2016. In that time, she’s led the firm’s executive functions focused on learning and development and organizational effectiveness. Working with the firm’s executive leadership, Kowal Kenyon and her team have facilitated global strategy execution and helped lead Ketchum through periods of organizational growth and change by employing organizational psychology and change management philosophies, processes and tools. She and her team are responsible for developing and implementing global talent development programs including succession planning, training and employee engagement, as well as post-acquisition integration for newly owned businesses and priority organizational effectiveness initiatives. A certified executive coach, Kowal Kenyon delivers leadership development services for Ketchum’s clients as well as the firm’s internal executives and rising leaders.

Prior to taking on her internal leadership role within Ketchum, Kowal Kenyon served as SVP and director at Ketchum’s change management unit Stromberg Consulting, which became Ketchum Change in 2010 and merged with sister agency Daggerwing Group in 2016. In her 13 years in that role, she provided management consulting services for Fortune 500 clients focused on team and operational effectiveness, process efficiency, and salesforce training and communication.

“This role is a perfect fit for Amanda and her skill sets, but more importantly, the appointment perfectly reflects the unique makeup of our firm,” Doyle added. “Her education in organizational psychology and deep practical experience in management consulting are a perfect representation of our consultancy model in action.”

Kowal Kenyon said, “Our business is built on the principles of the service profit chain – if we deliver an incredible employee experience where our people feel valued, respected, included and engaged, they will deliver top-notch client service which will lead to strong, sustained business performance. My mission is to ensure that every member of the Ketchum community feels supported by their teams and inspired by their work and ultimately that each one of them is better for being here.”

Kowal Kenyon completed the Columbia Coaching Certification Program at Columbia Business School. She holds a bachelor’s degree in communications from the Honors College at the University of Michigan, and she earned her master’s degree in organizational psychology from Columbia University.

About Ketchum
The winner of 131 Cannes Lions and PRovoke‘s Global Creative Agency of the Year, Ketchum is the most creatively awarded firm in our industry. We’re equal parts human-centered and business-focused, empathetic and intelligent. As a global communications consultancy, we combine the deep industry and specialty expertise of boutique firms with global reach to find unexpected connections that lead to lasting relationships and work that matters. For more information on Ketchum, a part of Omnicom Public Relations Group, visit www.ketchum.com.

About Omnicom Public Relations Group
Omnicom Public Relations Group is a global collective of three of the top global public relations agencies worldwide and specialist agencies in areas including public affairs, marketing to women, global health strategy and corporate social responsibility. It encompasses more than 6,300 public relations professionals in more than 370 offices worldwide who provide their expertise to companies, government agencies, NGOs and nonprofits across a wide range of industries. Omnicom Public Relations Group delivers for clients through a relentless focus on talent, continuous pursuit of innovation and a culture steeped in collaboration. Omnicom Public Relations Group is part of the DAS Group of Companies, a division of Omnicom Group Inc. (NYSE: OMC) that includes more than 200 companies in a wide range of marketing disciplines including advertising, public relations, healthcare, customer relationship management, events, promotional marketing, branding and research.

SOURCE Ketchum

Omnicom Group Schedules Second Quarter and Year-to-Date 2021 Earnings Release and Conference Call

Posted on July 13, 2021July 13, 2021 by Amanda Granath

DDB North America introduces new growth team

Posted on July 1, 2021July 1, 2021 by Amanda Granath

Elaine Purcell joins DDB North America as Chief Growth Officer

Adrienne Marcino joins DDB North America as Business Development & Growth Director

NEW YORK, July 1, 2021 /PRNewswire/ — DDB North America today announced a new growth team to oversee new business across the region. Elaine Purcell joins the North America leadership team as Chief Growth Officer and Adrienne Marcino joins as Business Development & Growth Director. The partnership will handle net new business and organic growth strategy across DDB’s North America Offices in the US and Canada.

Says DDB North America CEO Justin Thomas-Copeland: “We are thrilled to be reinvigorating our growth team, bringing in two incredible people with very distinct backgrounds. Elaine’s perspective and skillset will be critical as we redefine the DDB North America positioning and growth ambition. Her tenacity, vision and proven ability to win are exactly what DDB needs at this moment. She has spent years as the cornerstone of winning pitch teams, and I cannot wait to see what she does as the leader of growth for DDB in the region. Elaine’s strategic approach will be complemented by Adrienne’s new business rigor. Adrienne’s keen eye for net new opportunities is matched by her skills in creating and managing a new business machine. In Elaine and Adrienne, we have found a winning combination in not only skillset, but ability to foster a true culture of growth. I believe that they will make growth a point of pride across the region.”

As a former Head of Strategy at several the world’s most successful advertising agencies, Elaine takes an entirely fresh approach to the role of Chief Growth Officer. She brings a lens of psychology, business transformation and cultural change to her work. It is this strategic instinct that will allow her to reimagine how DDB approaches growth. One of her primary goals is to unlock the potential within DDB’s next generation positioning – Unexpected Works.

Elaine has deep experience in financial services, retail, real estate, spirits, packaged goods and non-profit organizations. Her former agencies include Havas, Droga5, Grey and Saatchi & Saatchi.

“If there’s one thing I understand, it is how brands grow – my background in strategy sets me up to focus on salience and relevance. Being remarkable. Being memorable. Being unexpected,” says Purcell. “My approach to the role is not just bringing a strategist’s eye to all things growth – I believe it’s about approaching the discipline of growth in an entirely new way. What our clients need from agencies to compete and win in their respective categories is changing more than ever – so it’s up to us to match that change. Our task is to provide Unexpected Works to clients and yield unreasonable results for DDB. We will shift the conversation around growth to achieve this, working collaboratively with leadership to cultivate a culture of growth where new business is everyone’s business.”

Adrienne Marcino joins the growth team at DDB North America with a proven track record of account wins during her time as Director of Business Development at Terri & Sandy. Throughout her career, Adrienne has helped agencies double in size and has a proven track record of year over year revenue growth through net-new wins. Her pitching strategies have proven effective against larger, established agency networks. Adrienne brings experience pitching, winning and growing accounts across a wide variety of industries including food & beverage, health & wellness, entertainment, tech, insurance, personal care, CPG and more.

Says Marcino: “DDB is primed for a phase of explosive growth. The leadership team has done an incredible job thus far of setting the offices up for success and I am eager to further fuel their momentum by driving connectivity and sharing skills, talents, and knowledge across the region. Together, we are going to increase our win rate, grow existing business and fuel a passion and hunger for new business at every level.

DDB North America’s new growth team announcement follows the release of the global agency’s evolved brand positioning entitled ‘Unexpected Works.’ Thomas-Copeland sees Unexpected Works as a vehicle for growth in the region. Says Thomas-Copeland, “Betting on our commitment to Creativity + Connection to deliver Unexpected Works, will spark growth for our clients’ business and our own across the region.”

ABOUT DDB WORLDWIDE  
DDB Worldwide (www.ddb.com) is one of the world’s largest and most influential advertising and marketing networks. DDB has been named 2021 Network of the Year by D&AD and ADC, as well as numerous times by the Cannes International Festival of Creativity and the industry’s leading advertising publications and awards shows. WARC has listed DDB as one of the Top 3 Global Networks for 12 of the last 15 years. The agency’s clients include Molson Coors, Volkswagen, McDonald’s, Unilever, Mars, Johnson & Johnson, and the U.S. Army, among others. Founded in 1949, DDB is part of the Omnicom Group (NYSE: OMC) and consists of more than 200 offices in over 90 countries with its flagship office in New York, NY.

ABOUT OMNICOM
Omnicom Group Inc. (NYSE – OMC) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms provide advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations and other specialty communications services to over 5,000 clients in more than 100 countries.

Contact: Donna Tobin, [email protected], 617-620-0359

SOURCE DDB North America