Omnicom Reports Second Quarter 2005 Results

NEW YORK, July 26 /PRNewswire-FirstCall/ -- Omnicom Group Inc. (NYSE: OMC) today announced that net income for the second quarter of 2005 increased 10% to $225.8 million from $206.1 million in the second quarter of 2004. Diluted earnings per share in the second quarter of 2005 increased 13% to $1.24 per share from $1.10 per share in the second quarter of 2004.

Worldwide revenue increased 9% to $2,615.8 million from $2,407.8 million in the second quarter of 2004. Domestic revenue for the second quarter of 2005 increased 9% to $1,427.7 million from $1,305.0 million in the second quarter of 2004. International revenue increased 8% to $1,188.1 million from $1,102.8 million in the second quarter of 2004.

Net income for the six months ended June 30, 2005 increased 10% to $376.3 million from $341.7 million in the same period in 2004. Diluted earnings per share for the six months ended June 30, 2005 increased 13% to $2.05 per share in 2005 from $1.81 per share in the same period in 2004.

Worldwide revenue for the six months ended June 30, 2005 increased 8% to $5,018.8 million from $4,639.2 million in the same period in 2004. Domestic revenue for the six months ended June 30, 2005 increased 9% to $2,739.8 million from $2,520.3 million in the same period in 2004. International revenue for the six months ended June 30, 2005 increased 8% to $2,279.0 million from $2,118.9 million in the same period in 2004.

Omnicom Group Inc. (NYSE: OMC) (http://www.omnicomgroup.com) is a leading global advertising, marketing and corporate communications company. Omnicom's branded networks and numerous specialty firms provide advertising, strategic media planning and buying, 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 second quarter earnings conference call, http://www.omnicomgroup.com/InvestorRelations.

     Omnicom Group Inc.
     (Unaudited)
     (In Millions of Dollars, Except Per Share Data)

    Three Months Ended June 30                    2005              2004

     Revenue                                  $ 2,615.8         $ 2,407.8

     Operating expenses                         2,233.8           2,064.1

     Operating profit                             382.0             343.7

     Net interest expense                          14.3               7.3

     Income before income taxes                   367.7             336.4

     Income taxes                                 124.3             113.1

     Income after income taxes                    243.4             223.3

     Equity in affiliates                           5.0               4.9
     Minority interests                           (22.6)            (22.1)

     Net income                                 $ 225.8           $ 206.1


     Earnings per share
         Basic                                   $ 1.24            $ 1.10
         Diluted                                 $ 1.24            $ 1.10


     Weighted average shares (in millions)
         Basic                                    181.4             186.8
         Diluted                                  182.8             188.2

     Dividend declared per share                $ 0.225           $ 0.225



     Omnicom Group Inc.
     (Unaudited)
     (In Millions of Dollars, Except Per Share Data)

    Six Months Ended June 30                      2005              2004

     Revenue                                  $ 5,018.8         $ 4,639.2

     Operating expenses                         4,379.5           4,066.1

     Operating profit                             639.3             573.1

     Net interest expense                          26.4              17.7

     Income before income taxes                   612.9             555.4

     Income taxes                                 210.5             186.7

     Income after income taxes                    402.4             368.7

     Equity in affiliates                          10.2               7.3
     Minority interests                           (36.3)            (34.3)

     Net income                                 $ 376.3           $ 341.7


     Earnings per share
         Basic                                   $ 2.07            $ 1.82
         Diluted                                 $ 2.05            $ 1.81


     Weighted average shares (in millions)
         Basic                                    182.0             187.3
         Diluted                                  183.5             188.8

     Dividend declared per share                $ 0.450           $ 0.450

SOURCE Omnicom Group Inc.

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