Omnicom Reports Fourth Quarter 2010 Results

NEW YORK, Feb. 15, 2011 /PRNewswire via COMTEX/ --

Omnicom Group Inc. (NYSE: OMC) today announced that its net income for the fourth quarter of 2010 increased 7.4% to $246.5 million from $229.6 million in the fourth quarter of 2009. Omnicom's diluted net income per common share in the fourth quarter of 2010 increased 13.7% to $0.83 per share from $0.73 per share in the fourth quarter of 2009.

Worldwide revenue increased 9.8% to $3,586.8 million from $3,265.9 million in the fourth quarter of 2009. Domestic revenue for the fourth quarter of 2010 increased 12.6% to $1,836.4 million compared to $1,630.4 million in the fourth quarter of 2009. International revenue increased 7.0% to $1,750.4 million compared to $1,635.5 million in the fourth quarter of 2009.

Omnicom's net income for the twelve months ended December 31, 2010 increased 4.4% to $827.7 million from $793.0 million in the same period in 2009. Omnicom's diluted net income per common share for the twelve months ended December 31, 2010 increased 6.7% to $2.70 per share in 2010 from $2.53 per share in the same period in 2009.

Worldwide revenue for the twelve months ended December 31, 2010 increased 7.0% to $12,542.5 million from $11,720.7 million in the same period in 2009. Domestic revenue for the twelve months ended December 31, 2010 increased 8.2% to $6,683.1 million from $6,178.4 million in the same period in 2009. International revenue for the twelve months ended December 31, 2010 increased 5.7% to $5,859.4 million from $5,542.3 million in the same period in 2009.

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

For a live webcast and/or a replay of our fourth quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.

Omnicom Group Inc.


(Unaudited)

(Dollars in Millions, Except Per Share Data)



Three Months Ended December 31,

2010

2009






Revenue

$3,586.8

$3,265.9






Operating expenses, excluding amortization of intangibles

3,127.0

2,851.2






Earnings before interest, taxes and




amortization of intangibles (a)

459.8

414.7






Amortization of intangibles

20.2

15.1






Operating income

439.6

399.6






Net interest expense

32.1

28.6






Income before income taxes

407.5

371.0






Income tax expense

139.4

124.7






Income from equity method investments

10.4

10.3






Net Income

278.5

256.6






Less: Net income attributed to noncontrolling interests

32.0

27.0






Net Income - Omnicom Group Inc.

246.5

229.6






Less: Net income allocated to participating securities

2.5

2.5






Net income available for common shares

$244.0

$227.1










Net Income per common share - Omnicom Group Inc.




Basic

$0.84

$0.74


Diluted

$0.83

$0.73










Weighted average shares (in millions)




Basic

290.5

308.9


Diluted

295.7

312.9






Dividend declared per common share

$0.20

$0.15



(a) Earnings before interest, taxes and amortization of intangibles ("EBITA") is a non-GAAP financial measure within the meaning of applicable SEC rules and regulations. Management uses EBITA as an additional operating performance measure, which excludes acquisition related amortization expense, because it believes that EBITA is a useful measure to evaluate the performance of our businesses. EBITA is not, nor should not be used as a substitute for Operating Income, as determined in accordance with GAAP.






Omnicom Group Inc.


(Unaudited)

(Dollars in Millions, Except Per Share Data)



Twelve Months Ended December 31,

2010

2009






Revenue

$12,542.5

$11,720.7






Operating expenses, excluding amortization of intangibles

11,011.5

10,289.5






Earnings before interest, taxes and




amortization of intangibles (a)

1,531.0

1,431.2






Amortization of intangibles

70.8

56.3






Operating income

1,460.2

1,374.9






Net interest expense

109.8

100.7






Income before income taxes

1,350.4

1,274.2






Income tax expense

460.2

433.6






Income from equity method investments

33.5

30.8






Net Income

923.7

871.4






Less: Net income attributed to noncontrolling interests

96.0

78.4






Net Income - Omnicom Group Inc.

827.7

793.0






Less: Net income allocated to participating securities

8.0

9.1






Net income available for common shares

$819.7

$783.9










Net Income per common share - Omnicom Group Inc.




Basic

$2.74

$2.54


Diluted

$2.70

$2.53










Weighted average shares (in millions)




Basic

299.6

308.2


Diluted

303.5

310.4






Dividend declared per common share

$0.80

$0.60



(a) Earnings before interest, taxes and amortization of intangibles ("EBITA") is a non-GAAP financial measure within the meaning of applicable SEC rules and regulations. Management uses EBITA as an additional operating performance measure, which excludes acquisition related amortization expense, because it believes that EBITA is a useful measure to evaluate the performance of our businesses. EBITA is not, nor should not be used as a substitute for Operating Income, as determined in accordance with GAAP.






SOURCE Omnicom Group Inc.

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