maslansky + partners Hires Jaime Hodges, PhD, as Senior Vice President, Head of Quantitative Research Posted on February 28, 2022February 28, 2022 by Amanda Granath Firm Expands Quantitative Practice with Behavioral Science and Linguistics Expert NEW YORK, Feb. 28, 2022 /PRNewswire/ — Leading Language Strategy® firm, maslansky + partners (m+p), today announced that it has hired Jaime Hodges, PhD, as its Senior Vice President and Head of Quantitative Research. In this newly created role at maslansky + partners, Dr. Hodges will expand and strengthen m+p’s quantitative offering through proprietary methods that integrate sophisticated multi-method research with the firm’s deep behavioral science and linguistics expertise. Hodges brings 20 years of research consulting experience, including eight years at Phoenix Marketing International, where she last held the position of Executive Vice President; and three years at Kantar, where she held the position of Group Vice President. She will be reporting into maslansky + partners Chief Executive Officer Michael Maslansky and will drive the firm’s strategic direction in quantitative methodologies, including newly-announced Persuasive Strength™ and core visual aid (CVA) optimization and development. “Clients want more ways to quantify the advice our teams provide, so expanding our quantitative team was an obvious step. Finding the right person was a challenge. Then we met Jaime, who brings a perfect mix of deep research expertise, an academically-rigorous approach and a passion for language. She will spearhead the development, design and execution of critical behavioral science- and linguistics-aligned approaches to solve clients’ most troublesome communications challenges,” said Maslansky. He continued, “Jaime is already helping us advance the state-of-the-art of Language Strategy by developing two new capabilities which we’re excited to announce: core visual aid (CVA) optimization and development and Persuasive Strength™. These multi-method, academically-validated approaches will help our clients better quantify the effectiveness of their overall messages; optimize the words, phrases and proof-points that drive the most impact; and align the right elements of their message with the right audience.” Dr. Hodges brings a wealth of knowledge in, and passion for, applying research and analytics to unearth disruptive customer insights, with a track record of helping to grow some of the biggest brands in the world. She is already combining her passion and experience to integrate rigorous research principles and innovative techniques with m+p’s deep knowledge and expertise in behavioral science and linguistics. These approaches help clients quantitatively assess effectiveness of a range of communications, supporting the firm’s “It’s not what you say, it’s what they hear” philosophy. Current offerings include argument strength analysis for persuasive messaging, implicit testing and corpus analysis for naming and tagline development, and AI-assisted qualitative-quantitative hybrid approaches within the advertising development lifecycle. “I knew that maslansky +partner’s blend of strategic communications consulting with roots in behavioral science and linguistics would be the perfect fit for my background. It has been so inspiring and rewarding to develop multi-disciplinary quantitative approaches that can now further validate the importance of framing and language, and the impact it can have on business outcomes,” said Dr. Hodges. With this quantitative development and initial offerings, maslansky + partners continues to expand its client-available resources to ensure that communication development and optimization stay at the cutting edge of industry-based methodologies. To learn more about core visual aid development and optimization, visit https://maslansky.com/core-visual-aid-testing/. To learn more about Persuasive Strength™, visit https://maslansky.com/persuasive-strength/. About maslanksy + partners maslansky + partners is a language strategy firm widely recognized as a leader in communication, research, and messaging. The firm’s approach is based on a simple idea: it’s not what you say, it’s what they hear®. Using a research- and data-driven approach, maslansky + partners helps clients find the right language to simplify the complex, build credibility amidst controversy, stand out from the crowd, and always speak in the language of their audience. For more information on maslansky + partners, a part of Omnicom Public Relations Group, visit www.maslansky.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, language strategy, global health strategy and change management. As the largest group of communications professionals in the world, our employees provide 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 Communications Consultancy Network, a division of Omnicom Group Inc. (NYSE: OMC). 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. SOURCE Omnicom Public Relations Group
Omnicom Group Appoints Patricia Salas Pineda and Mark D. Gerstein to Board of Directors Posted on February 22, 2022February 22, 2022 by Amanda Granath NEW YORK, Feb. 22, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced two new members of its Board of Directors. Patricia Salas Pineda has been appointed an independent director and member of the Governance Committee, effective immediately. Mark D. Gerstein has been appointed an independent director effective May 1, 2022, and he will join the Finance Committee. The two appointments increase the size of the Board of Directors to 11 members, 10 of whom are independent. Within this diverse Board, seven members are women, four are African American and one is Latina. “We speak at length about proper representation and inclusion within our company, and this starts at the top,” said John Wren, Chairman and CEO of Omnicom Group. “As we conducted our extensive search, we looked for candidates who could diversify the knowledge and experience on our Board. With the depth of expertise and leadership these two new independent directors bring from very different industries, I believe they do just that. It is a pleasure to welcome both Pat and Mark to the Board.” Pineda served as Group Vice President of Hispanic Business Strategy for Toyota Motor North America, Inc. from 2013 to October 2016. Prior to that, she was Group Vice President of National Philanthropy for nine years. During her time at Toyota Motor North America, Pineda also served as General Counsel and Group Vice President of Administration, Corporate Advertising, Corporate Communications and Diversity. Pineda is currently a member of the Board of Directors of the Latino Corporate Directors Association and a member of the Board of Trustees for Earthjustice. Since 1996, Gerstein has been a partner at Latham & Watkins, holding leadership positions including global chair of the Mergers & Acquisitions group, where he helped build the Latham & Watkins M&A Practice into a U.S. and global leader for public company transactions. He has counselled the directors and officers of Fortune 500 companies and other public companies on corporate governance (including ESG matters), investor relations, crisis management, domestic and cross-border mergers and acquisitions, and other strategic and capital markets matters. Mark was Chair and is currently a Board member of Youth Guidance, which works with children in urban public schools in Chicago and nationally. He also serves on the University of Michigan’s Dean’s Advisory Council at the School of Literature, Science and the Arts. Learn more about Omnicom Group’s Board of Directors at https://www.omnicomgroup.com/about/corporate-governance. 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. SOURCE Omnicom Group Inc.
Omnicom Group Inc. Declares Dividend Posted on February 15, 2022February 15, 2022 by Amanda Granath NEW YORK, Feb. 15, 2022 /PRNewswire/ — The Board of Directors of Omnicom Group Inc. (NYSE: OMC) declared a quarterly dividend of 70 cents per outstanding share of the corporation’s common stock. The dividend is payable on April 8, 2022 to Omnicom Group common shareholders of record at the close of business on March 10, 2022. 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. SOURCE Omnicom Group Inc.
Omnicom Scores Big in USA TODAY’s 34th Annual Ad Meter Competition for Super Bowl LVI Ads Posted on February 14, 2022February 14, 2022 by Amanda Granath Omnicom agencies rank in the top 10, more than any other holding company NEW YORK, Feb. 14, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced three commercials created by its agencies ranked in the top ten of USA TODAY’s 34th annual Ad Meter competition. “Mind Reader” by Lucky Generals for Amazon and “Push It” by Goodby Silverstein & Partners (GS&P) for Doritos/Cheetos Flamin’ Hot came in the top three at #2 and #3 respectively. BMW’s “Zeus & Hera,” also by GS&P, placed at #7. Since its inception in 1989, USA TODAY’s Ad Meter has become the industry’s leading tool to measure public sentiment and opinion surrounding Super Bowl advertisements. Beginning February 9 at 12 noon ET through February 14 at 1 a.m. ET, registered Ad Meter participants were able to watch and rate this year’s Super Bowl commercials to determine fan favorites. “It’s always exciting to watch months of preparation come to life when Super Bowl commercials finally air,” said John Wren, Chairman and CEO of Omnicom Group. “With over 65 commercials featured in this year’s Ad Meter competition, our agencies proved their industry leading creativity and expertise could break through the noise and capture consumer’s attention across all traditional and social media platforms. Congratulations to all those who were involved in the ideation and production of these noteworthy spots.” According to Adweek, Amazon’s “Mind Reader” by Lucky Generals was the most-viewed Super Bowl 56 commercial on YouTube on game day (through 7 p.m. PT/10 p.m. ET). This is the fourth year that Lucky Generals has advertised Amazon’s Alexa in the Super Bowl, with the agency’s spots landing in the top 3 of the Ad Meter in every outing. The first time was in 2018 when it took the #1 spot with “Alexa Loses Her Voice”, making it the first British agency to win. Goodby Silverstein & Partners made waves with not just one, but two of their spots making the top ten on USA TODAY’s list. “Push It” for Doritos/Cheetos Flamin’ Hot and BMW’s “Zeus and Hera” were also named #1 and #3 according to Ace Metrix study of “Most Likable” ads in the game. This 2022 success follows on the heels of last year’s Frito-Lay big game work with Cheetos “Wasn’t Me” and Doritos “Flat Matthew” ranking #7 and #9 on USA TODAY’s Ad Meter, respectively. In 2021, Cheetos became the most Tweeted and Googled spot in the game and ranked #1 for Purchase Intent. To view the complete ranking, visit https://admeter.usatoday.com. 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 Reports Fourth Quarter and Full Year 2021 Results Posted on February 8, 2022February 10, 2022 by Amanda Granath Revenue of $3,855.9 million increased 2.6%, with organic growth of 9.5% Operating profit of $622.5 million increased 1.3% Operating profit margin of 16.1% Net income of $416.2 million increased 4.5% Diluted earnings per share of $1.95 increased 6.0% NEW YORK, Feb. 8, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced results for the quarter and full year ended December 31, 2021. “Global organic revenue growth of 9.5% exceeded our expectations in the fourth quarter, operating profit margins remained very strong, and we posted solid quarterly earnings per share,” said John Wren, Chairman and Chief Executive Officer of Omnicom Group Inc. “Once again, thanks to the efforts of our people across Omnicom, we were pleased to see strong results across all geographies and services, led by our focus on digital, precision marketing and consulting. Our teams are working together in powerful new ways – with leading technology and data solutions – to deliver the best client outcomes in a rapidly evolving market. We are optimistic in our 2022 outlook and expect to continue build on our long-term record of improving profitability and sustained value creation.” $ in millions, except per share amounts Three Months EndedDecember 31, Twelve Months EndedDecember 31, 2021 2020 2021 2020 Revenue $ 3,855.9 $ 3,757.0 $ 14,289.4 $ 13,171.1 Operating Profit 1 622.5 614.7 2,197.9 1,598.8 Operating Profit Margin 16.1 % 16.4 % 15.4 % 12.1 % Net Income 2 416.2 398.1 1,407.8 945.4 Net Income per Share – Diluted 2 $ 1.95 $ 1.84 $ 6.53 $ 4.37 EBITA 3 642.7 635.4 2,277.9 1,681.9 EBITA Margin 3 16.7 % 16.9 % 15.9 % 12.8 % Notes: 1) 2020 results include a reduction in salary and service costs of $44.7 million and $162.6 million for the three and twelve months ended December 31, 2020, respectively, related to reimbursements from governmental pandemic relief programs in several countries. Results for the twelve months ended December 31, 2021 includes $50.5 million related to a Gain on disposition of subsidiary and the twelve months ended December 31, 2020 includes $277.9 million for COVID-19 repositioning costs and a $55.8 million asset impairment charge. 2) Net Income and Net Income per Share are for Omnicom Group Inc. 3) See Reconciliation of Non-GAAP Financial Measures. Fourth Quarter 2021 Results RevenuesOur worldwide revenue in the fourth quarter of 2021 continued to improve from the negative effects of the COVID-19 pandemic. Revenue increased 2.6% to $3,855.9 million from $3,757.0 million in the fourth quarter of 2020. The components of the change in revenue included an increase in revenue from organic growth of 9.5%, a decrease in acquisition revenue, net of disposition revenue, of 6.6%, and a decrease in revenue from the negative impact of foreign currency translation of 0.3%. The decrease in acquisition revenue, net of disposition revenue, reflects the sale of ICON International, a specialty media business, in June 2021. Organic growth in the fourth quarter of 2021 compared to the fourth quarter of 2020 increased across all of our fundamental disciplines, including: 7.4% for Advertising, 19.6% for Precision Marketing, 12.4% for Commerce & Brand Consulting, 56.7% for Experiential, 5.2% for Execution & Support, 4.4% for Public Relations and 4.5% for Healthcare. Organic growth in the fourth quarter of 2021 compared to the fourth quarter of 2020 across our regional markets was as follows: 7.8% for the United States, 1.8% for Other North America, 10.1% for the United Kingdom, 12.7% for the Euro Markets & Other Europe, 7.8% for Asia Pacific, 7.3% for Latin America and 48.1% for the Middle East & Africa. ExpensesOperating expenses increased $91.1 million, or 2.9%, to $3,233.4 million compared to the fourth quarter of 2020, including a decrease of 0.2% from the impact of foreign currency translation. Salary and service costs, which tend to fluctuate with changes in revenue, increased $70.9 million, or 2.6%, to $2,792.1 million, reflecting an increase in salary and related costs of $187.2 million and a decrease in third-party service costs of $116.3 million. The increase in salary and related service costs resulted primarily from the increase in organic revenue. Third-party service costs, including proprietary media, decreased during the quarter due primarily to the disposition of ICON, partially offset by costs related to our organic growth in revenue. Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $11.3 million, or 4.2%, to $277.2 million compared to the fourth quarter of 2020, due to higher general office expenses, partially offset by lower rent and other occupancy costs. SG&A expenses increased $8.5 million, or 8.4%, to $109.9 million compared to the fourth quarter of 2020, due to an increase in marketing, professional fees, and new business costs. Operating ProfitOperating profit increased $7.8 million, or 1.3%, to $622.5 million compared to the fourth quarter of 2020, and our operating margin of 16.1% decreased from 16.4%. Interest ExpenseNet interest expense in the fourth quarter of 2021 decreased $3.6 million, or 7.5%, to $44.4 million compared to the fourth quarter of 2020. Interest expense on debt in the fourth quarter of 2021 decreased $2.4 million to $45.8 million primarily as a result of the benefit from the early redemption in May 2021 of all the outstanding $1.250 billion principal amount of 3.625% Senior Notes due 2022, partially offset by the May 2021 issuance of $800 million of 2.60% Senior Notes due 2031 and the November 2021 issuance of £325 million of 2.25% Senior Notes due 2033. Income TaxesOur effective tax rate of 23.1% in the fourth quarter of 2021 decreased from 25.0% in the fourth quarter of 2020. In the fourth quarter of 2021, income tax expense was reduced by $21.1 million primarily from the favorable settlements of uncertain tax positions in certain jurisdictions. Net Income – Omnicom Group Inc.Net income – Omnicom Group Inc. for the fourth quarter of 2021 increased $18.1 million, or 4.5%, to $416.2 million compared to the fourth quarter of 2020. Diluted shares outstanding decreased to 213.3 million, or 1.3%, from 216.1 million. Diluted net income per share of $1.95 increased 6.0% from $1.84 per share. EBITAEBITA in the fourth quarter of 2021 increased $7.3 million, or 1.1%, to $642.7 million compared to the fourth quarter of 2020. Our EBITA margin of 16.7% decreased from 16.9%. Full Year 2021 Results RevenuesOur worldwide revenue in 2021 continued to improve from the negative effects of the COVID-19 pandemic. Total revenues increased 8.5% to $14,289.4 from $13,171.1 in 2020. The components of the change in revenue included an increase in revenue from organic growth of 10.2%, a decrease in acquisition revenue, net of disposition revenue, of 3.9%, and an increase in revenue from the positive impact of foreign currency translation of 2.2%. Organic growth in 2021 compared to 2020 increased across all of our fundamental disciplines, including: 10.7% for Advertising, 19.0% for Precision Marketing, 9.9% for Commerce & Brand Consulting, 27.0% for Experiential, 4.2% for Execution & Support, 6.3% for Public Relations and 4.0% for Healthcare. Organic growth in 2021 compared to 2020 across our regional markets was as follows: 8.1% for the United States, 11.7% for Other North America, 8.8% for the United Kingdom, 13.6% for the Euro Markets & Other Europe, 13.7% for Asia Pacific, 9.4% for Latin America and 26.4% for the Middle East & Africa. ExpensesOperating expenses increased $519.2 million, or 4.5%, to $12,091.5 million compared to 2020, including a 2.1% increase from the impact of foreign currency translation. Salary and service costs, which tend to fluctuate with changes in revenue, increased $829.2 million, or 8.7%, to $10,402.0 million, reflecting an increase in salary and related service costs of $720.1 million and an increase in third-party service costs of $109.1 million. The increase in salary and related service costs resulted primarily from the increase in organic revenue and was partially offset by a $50.5 million gain on the sale of subsidiary recorded in the second quarter. The prior year period reflects a reduction in salary and service costs of $162.6 million related to reimbursements from governmental pandemic-related programs in several countries, partially offset by asset impairment charges of $55.8 million. Third-party service costs, including proprietary media, increased due primarily to costs related to our organic growth in revenue, partially offset by the disposition of ICON. Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $9.7 million, or 0.9%, to $1,148.2 million compared to 2020, due to higher general office expenses, partially offset by lower rent and other occupancy costs. SG&A expenses increased $19.2 million, or 5.3%, to $379.7 million compared to 2020, due primarily to an increase in professional fees, new business costs, and marketing. Operating ProfitOperating profit increased $599.1 million, or 37.5%, to $2,197.9 million compared to 2020, and our operating margin of 15.4% increased from 12.1%. COVID-19 Business UpdateAs the impact of the COVID-19 pandemic on the global economy continues to moderate, we experienced an improvement in our business in 2021 as compared to 2020. In 2021, revenue increased $1,118.3 million, or 8.5%, compared to 2020. The increase in revenue primarily reflects increased client spending in all our disciplines and across all our geographic areas compared to the prior year and the strengthening of most foreign currencies, primarily the British Pound and the Euro, against the U.S. Dollar. The increase in revenue year-over-year was partially offset by a reduction in acquisition revenue, net of disposition revenue reflecting the sale of ICON International, or ICON, a specialty media business, in the second quarter of 2021. Global economic conditions may continue to be volatile as long as the COVID-19 pandemic remains a public health threat, which could negatively impact 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 ChangeWe 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 DisciplineEffective January 1, 2021, we realigned the classification of certain services primarily within our CRM Consumer Experience discipline. As a result, this discipline is now grouped into four categories: Precision Marketing, which includes our precision marketing and digital/direct marketing agencies; Commerce and Brand Consulting, which is primarily comprised of Omnicom Commerce Group, including our shopper marketing businesses, and Omnicom Brand Consulting agencies; Experiential, which includes our experiential marketing agencies and events businesses; and Execution & Support, which includes field marketing, merchandising and point of sale, as well as other specialized marketing and custom communications services. Conference CallOmnicom will host a conference call to review its financial results on Tuesday, February 8, 2022 at 4:30 p.m. EST. 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 investor relations website. Corporate ResponsibilityAt Omnicom, we are committed to promoting responsible practices and making positive contributions to society around the globe. Please explore our website (csr.omnicomgroup.com) for highlights of our progress across the four areas on which we focus: People, Community, Environment and Governance. 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. Non-GAAP Financial MeasuresWe 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. 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. Forward-Looking StatementsCertain statements in this press release constitute forward-looking statements, including statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, from time to time, the Company or its representatives have made, or may make, forward-looking statements, orally or in writing. These statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial position, or otherwise, 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. These 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. Factors that could cause actual results to differ materially from those in the forward-looking statements include: adverse economic conditions, including those caused by the impact of the COVID-19 pandemic, severe and sustained inflation in countries that comprise our major markets, supply chain issues affecting the distribution of our clients’ products; international, national or local economic conditions that could adversely affect the Company or its clients; losses on media purchases and production costs incurred on behalf of clients; reductions in client spending, a slowdown in client payments and a deterioration or a disruption in the credit markets; the ability to attract new clients and retain existing clients in the manner anticipated; changes in client advertising, marketing and corporate communications requirements; failure to manage potential conflicts of interest between or among clients; unanticipated changes relating to competitive factors in the advertising, marketing and corporate communications industries; the ability to hire and retain key personnel; currency exchange rate fluctuations; reliance on information technology systems; changes in legislation or governmental regulations affecting the Company or its clients; risks associated with assumptions the Company makes in connection with its critical accounting estimates and legal proceedings; and the Company’s international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions and regulatory environment. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors 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. Omnicom Group Inc. Consolidated Statements of Income Three Months Ended December 31 (Unaudited) (Dollars in Millions, Except Per Share Data) 2021 2020 Revenue $3,855.9 $3,757.0 Operating Expenses: Salary and service costs $2,792.1 $2,721.2 Occupancy and other costs $277.2 $265.9 Costs of services $3,069.3 $2,987.1 Selling, general and administrative expenses $109.9 $101.4 Depreciation and amortization $54.2 $53.8 $3,233.4 $3,142.3 Operating Profit $622.5 $614.7 Interest Expense $51.6 $55.3 Interest Income $7.2 $7.3 Income Before Income Taxes $578.1 $566.7 Income Tax Expense $133.6 $141.5 Income From Equity Method Investments $5.4 $3.3 Net Income $449.9 $428.5 Net Income Attributed To Noncontrolling Interests $33.7 $30.4 Net Income – Omnicom Group Inc. $416.2 $398.1 Net Income Per Share – Omnicom Group Inc. Basic $1.96 $1.85 Diluted $1.95 $1.84 Weighted average shares (in millions) Basic $212.2 $215.5 Diluted $213.3 $216.1 Dividends Declared Per Common Share $0.70 $ 0.65 Salary and service costs for the three months ended December 31, 2020 includes the reduction of $44.7 million in operating expenses related to reimbursements under government pandemic relief programs in several countries where we have operations and an increase of $55.8 million related to asset impairment charges. The net after tax effect of these items to Net Income – Omnicom Group was an increase of $23.0 million. Omnicom Group Inc. Consolidated Statements of Income Twelve Months Ended December 31(Unaudited) (Dollars in Millions, Except Per Share Data) 2021(a) 2020(b)(c) Revenue $14,289.4 $13,171.1 Operating Expenses Salary and service costs 10,402.0 9,572.8 Occupancy and other costs 1,148.2 1,138.5 Gain on disposition of subsidiary (50.5) – COVID-19 repositioning costs – 277.9 Costs of services 11,499.7 10,989.2 Selling, general and administrative expenses 379.7 360.5 Depreciation and amortization 212.1 222.6 12,091.5 11,572.3 Operating Profit 2,197.9 1,598.8 Interest Expense 236.4 221.8 Interest Income 27.3 32.3 Income Before Income Taxes 1,988.8 1,409.3 Income Tax Expense 488.7 381.7 Income (Loss) From Equity Method Investments 7.5 (6.8) Net Income 1,507.6 1,020.8 Net Income Attributed To Noncontrolling Interests 99.8 75.4 Net Income – Omnicom Group Inc. $1,407.8 $945.4 Net Income Per Share – Omnicom Group Inc. Basic $6.57 $4.38 Diluted $6.53 $4.37 Weighted average shares (in millions) Basic 214.3 215.6 Diluted 215.6 216.2 Dividends Declared Per Common Share $2.80 $2.60 (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 twelve months ended December 31, 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 twelve months ended December 31, 2021. (b) The net after-tax effect on Net Income – Omnicom Group Inc. for the twelve months ended December 31, 2020 from the COVID-19 repositioning costs and assets impairment charges of $55.8 million, decreased Net Income – Omnicom Group Inc. by $270.2 million. (c) Salary and service costs for the twelve months ended December 31, 2020 includes the reduction of $162.6 million in operating expenses related to reimbursements under pandemic relief government programs in several countries where we have operations. The net after tax effect of these items was an increase to Net Income – Omnicom Group Inc. of $123.4 million. Omnicom Group Inc. Detail of Operating Expenses Three Months Ended December 31 (Unaudited) (Dollars in Millions) 2021(a) 2020(a) Operating Expenses: Salary and service costs Salary and related service costs $1,869.8 $1,682.6 Third-party service costs 922.3 1,038.6 Occupancy and other costs 277.2 265.9 Costs of services 3,069.3 2,987.1 Selling, general and administrative expenses 109.9 101.4 Depreciation and amortization 54.2 53.8 Total Operating Expenses $3,233.4 $3,142.3 Omnicom Group Inc. Detail of Operating Expenses Twelve Months Ended December 31 (Unaudited) (Dollars in Millions) 2021(a) 2020(a) Operating Expenses: Salary and service costs Salary and related service costs $6,971.0 $6,250.9 Third-party service costs 3,431.0 3,321.9 Occupancy and other costs 1,148.2 1,138.5 Gain on disposition of subsidiary (50.5) – COVID-19 repositioning costs – 277.9 Costs of services 11,499.7 10,989.2 Selling, general and administrative expenses 379.7 360.5 Depreciation and amortization 212.1 222.6 Total Operating Expenses $12,091.5 $11,572.3 (a) See footnotes on pages 6-7 Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures – EBITA Three Months Ended December 31 (Unaudited) (Dollars in Millions) 2021 2020 Net Income – Omnicom Group Inc. $416.2 $398.1 Net Income Attributed To Noncontrolling Interests 33.7 30.4 Net Income 449.9 428.5 Income From Equity Method Investments 5.4 3.3 Income Tax Expense 133.6 141.5 Income Before Income Taxes 578.1 566.7 Interest Income 7.2 7.3 Interest Expense 51.6 55.3 Operating Profit 622.5 614.7 Add back: Amortization of intangible assets 20.2 20.7 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $642.7 $635.4 Revenue $3,855.9 $3,757.0 EBITA $642.7 $635.4 EBITA Margin % 16.7 % 16.9 % 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 Twelve Months Ended December 31 (Unaudited) (Dollars in Millions) 2021 2020 Net Income – Omnicom Group Inc. $1,407.8 $945.4 Net Income Attributed To Noncontrolling Interests 99.8 75.4 Net Income 1,507.6 1,020.8 Income (Loss) From Equity Method Investments 7.5 (6.8) Income Tax Expense 488.7 381.7 Income Before Income Taxes 1,988.8 1,409.3 Interest Income 27.3 32.3 Interest Expense 236.4 221.8 Operating Profit 2,197.9 1,598.8 Add back: Amortization of intangible assets 80.0 83.1 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) $2,277.9 $1,681.9 Revenue $14,289.4 $13,171.1 EBITA $2,277.9 $1,681.9 EBITA Margin % 15.9% 12.8% 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.Revenue by DisciplineThree & Twelve Months Ended December 31(Unaudited) (Dollars in Millions) Three Months EndedDecember 31, Twelve Months EndedDecember 31, 2021 2020 2021 2020 Advertising $ 2,120.5 $ 2,220.4 $ 7,959.3 $ 7,511.4 Precision Marketing 322.3 261.5 1,194.8 944.6 Commerce & Brand Consulting 243.4 219.0 910.7 821.8 Experiential 200.8 128.9 545.9 426.8 Execution & Support 270.3 259.3 1,026.6 961.3 Public Relations 368.9 353.5 1,391.7 1,310.9 Healthcare 329.7 314.4 1,260.4 1,194.3 Revenue $ 3,855.9 $ 3,757.0 $ 14,289.4 $ 13,171.1 SOURCE Omnicom Group Inc.
Dieste Appoints Abe Garcia to Chief Creative Officer Posted on February 8, 2022February 8, 2022 by Amanda Granath DALLAS and NEW YORK, Feb. 8, 2022 /PRNewswire/ — Dieste Inc., a leading multicultural communications agency in U.S., has named Abe Garcia its new Chief Creative Officer (CCO), effective February 1st. Garcia will help set and implement the creative vision, oversee all creative development, spearhead the recruitment of top talent, and guide new business creative efforts, working closely with the agency’s leadership team Dieste Inc., a leading multicultural communications agency in U.S., has named Abe Garcia its new Chief Creative Officer.Tweet this “Abe is one of the most accomplished creative executives in our field. We felt like he was ready to take the helm of CCO, giving continuity to the great momentum we have as an agency,” said Dieste’s CEO Greg Knipp. Garcia joined Dieste in 2015 as an executive creative director and has worked on many award-winning campaigns. “The vision I have is not a story about us being at the top, it’s really about tapping into and unifying our incredibly diverse, talented, creative minds across all our offices to develop work for our clients that is talked about and moves our audiences. Work that’s meant to create collisions, insights, experience, leadership styles, conversations, opinions,” says Garcia. Tony Dieste, Chairman of Dieste, said, “We are delighted to promote Abe to this important role. He’s proved himself time and time again; he’s bringing his unique creative talents to help our clients build and drive relevancy for some of the world’s strongest brands. His work sells, entertains, and becomes part of the cultural conversation in tune with our creative legacy and reputation. His appointment underscores our ongoing investment in assembling the best bench of creative leaders in the space.” Dieste, among the most successful multicultural agencies in the U.S. over the past two decades, is experiencing one of its best moments both in terms of growth and creativity, according to Garcia. “I’m extremely excited about the opportunity to help shape the agency’s next 20 years,” said Garcia. The agency was recently recognized with multiple Effie awards and has been the recipient of Cannes Lions as well as many other industry accolades for strategic and creative platforms developed for its clients. About Dieste, Inc. Dieste, Inc., the company for the new multicultural connected age, develops creative solutions and services to grow our clients’ businesses. We work with brands and their partner agencies to better understand cultural audiences in order to improve brand relevance and drive significant results. Our work spans from commercials and digital experiences to business consulting and product innovation. Dieste is an “A” List Agency and three-time Ad Age Multicultural Agency of the Year winner and is part of The Collective a division of Omnicom Group Inc. (NYSE: OMC). www.dieste.com
Omnicom Group Schedules Fourth Quarter and Full Year 2021 Earnings Release and Conference Call Posted on February 2, 2022 by Amanda Granath NEW YORK, Feb. 2, 2022 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) will publish its fourth quarter and full year 2021 results on Tuesday, February 8, 2022 after the New York Stock Exchange closes. The company will also host a conference call to review the financial results on Tuesday, February 8, 2022 starting at 4:30 p.m. EST. Participants may listen to the conference call by dialing (844) 291-6362 (domestic) or (234) 720-6995 (international), along with access code 1468163. The conference call will be simulcast and archived on our website at investor.omnicomgroup.com. 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. SOURCE Omnicom Group Inc.
Omnicom Health Group Acquires Propeller Posted on February 2, 2022February 2, 2022 by Amanda Granath Addition of digitally-native specialty agency further deepens omnichannel capabilities NEW YORK, Feb. 2, 2022 /PRNewswire/ — Omnicom Health Group, the largest healthcare marketing and communications group in the world, and part of Omnicom Group Inc. (NYSE: OMC), today announced it has acquired Propeller, a digitally-focused omnichannel engagement marketing agency that specializes in healthcare. Founded in 2006 by President Charles Flax, Propeller has evolved from a digital video start-up to a fast-growing omnichannel strategy, content and delivery agency. Across its offerings, Propeller embraces and mobilizes data to deliver meaningful results for its clients. Flax and the leadership team at Propeller will continue to serve in their current roles. “We’ve known and admired Propeller’s great work through several clients we share in the areas of major pharmaceuticals, medical devices and biotechnology,” said Joshua Prince, CEO of the Professional Group for Omnicom Health Group. “We’re excited to welcome their talented staff of ‘Propellers’ to OHG. Charlie and his leadership team bring deep digital marketing expertise and solutions that will now be available to all our clients.” “Propeller is 100% digitally native,” said Flax. “We’re agile, fast and driven by data. We’re also purely focused on healthcare and have earned the trust of our pharma, device and biotech clients—especially as they migrate to omnichannel. Our unbelievably talented team will have many more opportunities to grow as part of OHG, and they can help us continue to evolve our offerings.” Propeller’s already strong data capabilities will be further reinforced with resources from Omni Health—OHG’s powerful healthcare-centric data platform. “We can expand Propeller’s reach through collaboration with our network of award-winning agencies, and in partnership with our industry-leading media group,” said Prince. “We see significant potential for growth with Propeller under Charlie’s ongoing leadership.” Added Flax, “We were looking for a partner that would be aligned with our core values and entrepreneurial spirit. I love OHG’s commitment to ‘Independent-minded’ agency brands, and how they’re ‘Brilliantly Connected’ at the center. I’m thrilled to be part of Omnicom Health Group and look forward to growing together.” The acquisition of Propeller follow’s OHG’s acquisition of Archbow in 2021 and is in line with the group’s strategy to continue to invest in areas of rapid growth. ABOUT OMNICOM HEALTH GROUPOmnicom Health Group (www.omnicomhealthgroup.com) is a global collective of communications companies with more than 4,500 dedicated healthcare communications specialists. It provides marketing services to the health and life-science industries and is powered by Omni Health, the first and only end-to-end data platform designed for the specific requirements of healthcare clients. Organized around four customer groups—healthcare professionals, patients, payers, and medical, evidence and regulatory stakeholders—Omnicom Health Group serves more than 100 clients worldwide through a combination of specialized agencies, customized client solutions, and collaborations with other Omnicom network agencies. Omnicom Health Group is part of the DAS Group of Companies, a division of Omnicom Group Inc. ABOUT PROPELLERPropeller (www.propellercommunicates.com) is a digitally-focused marketing agency that specializes in omnichannel communications to healthcare professionals. Using a unique, data-driven, 360-degree marketing approach, Propeller aligns Strategy, Content, and Execution across every customer experience to “influence the influential” and help pharmaceutical, biotech, and device manufacturers achieve stronger commercial results. 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. SOURCE Omnicom Health Group
FleishmanHillard Unveils Culture Unit to Keep Pulse on Global Consumer Behaviors and Insights Posted on February 1, 2022February 1, 2022 by Amanda Granath Agency Launches Partnership with UN Women’s Unstereotype Alliance ST. LOUIS, Feb. 1, 2022 /PRNewswire/ — FleishmanHillard today announced the launch of the Culture Unit, a team within the Brand Marketing practice dedicated to analyzing consumer behavioral trends and insights. The information is then used to counsel clients on how to position a brand, product or organization in relation to any defined profiles. The Culture Unit will also fuel strategic agency partnerships to help clients authentically engage with key audiences and enable the communities they serve. The agency’s new partnership with the Unstereotype Alliance, convened by UN Women, is a platform that seeks to end harmful stereotypes in all communications and advertising. “For a long time, agencies have been versed in mitigating risk for clients through the typical lens of product and retail issues, or employee and customer engagement,” said Lauren Winter, FleishmanHillard’s global managing director of consumer culture, and Culture Unit lead. “We’re in an era of people power where the normal expectations of businesses and brands are so much more than they’ve ever been. The Culture Unit has been created to not only help clients mitigate risks in the cultural sphere, but to actually say and do something brave to build reputation. Partnerships such as the Unstereotype Alliance allow us to do this authentically. Creating an inclusive experience starts with the language we use, and this partnership will arm our employees with the tools and education to progress this positive force for change.” This progressive partnership will further enhance FleishmanHillard’s extensive training program with UN-accredited training modules for employees at a strategic level, as well as providing exclusive access to industry-leading research, global resources and experts to lead tangible change. FleishmanHillard will also contribute its industry expertise towards the advancement of the Alliance’s objectives and become an active member in driving the mission and achieving gender equality. Claire Barnett, UN Women UK Executive Director, said, “We’re delighted to welcome FleishmanHillard into the UK Chapter of the Unstereotype Alliance. They join a growing coalition of allies and businesses committed to diverse and inclusive advertising and marketing communications in order to create a more equal world. We have big plans for 2022 and welcome FleishmanHillard’s deep expertise in both public relations and marketing to help us make industry-wide change.” The newly launched Culture Unit consists of global cultural strategists working in behavioral change, looking at fringe culture to enable clients to be ready for what’s happening today and coming tomorrow. Acting as a springboard between the data and creative, the Unit will work across FleishmanHillard’s top 200 clients offering below-the-line cultural insights that lead to braver and community-changing campaigns. About FleishmanHillardFleishmanHillard specializes in public relations, reputation management, public affairs, brand marketing, digital strategy, social engagement and content strategy. FleishmanHillard was named 2021 PRovoke Global Agency of the Year, 2020 Campaign Global PR Agency of the Year, 2019 PRWeek U.S. Outstanding Large Agency; ICCO Network of the Year – Americas 2017-2020; PRovoke Media Greater China Consultancy of the Year 2020; PRWeek UK Large Consultancy of the Year 2021; Human Rights Campaign Best Places to Work for LGBTQ Equality 2018-2020; and to Seramount’s (formerly Working Mother Media) “Top Companies for Executive Women” list 2010-2021. The firm’s award-winning work is widely heralded, including at the Cannes International Festival of Creativity. FleishmanHillard is part of Omnicom Public Relations Group, and has 80 offices in more than 30 countries, plus affiliates in 50 countries. About Omnicom Public Relations GroupOmnicom 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, language strategy, global health strategy and change management. As the largest group of communications professionals in the world, our employees provide 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 Communications Consultancy Network, a division of Omnicom Group Inc. (NYSE: OMC). About Communications Consultancy NetworkCommunications Consultancy Network (CCN) is a global collective of the top global public relations, strategy, branding, and research agencies. Award-winning brands include FleishmanHillard, Ketchum, Porter Novelli, Marina Maher Communications, Interbrand, C Space, Wolff Olins, Sterling, Siegel & Gale and Hall & Partners. We are home to a group of highly talented and specialized consultants across industries and marketing disciplines, delivering strategic thinking and market-leading innovation to clients. CCN is a division of Omnicom Group Inc. (NYSE: OMC). 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. SOURCE FleishmanHillard Inc.