Omnicom Reports Second Quarter 2009 Results

NEW YORK, July 23, 2009 /PRNewswire-FirstCall via COMTEX/ -- Omnicom Group Inc. (NYSE: OMC) today announced that its net income for the second quarter of 2009 decreased 24.0% to $233.4 million from $307.0 million in the second quarter of 2008. Omnicom's diluted net income per common share in the second quarter of 2009 decreased 21.1% to $0.75 per share from $0.95 per share in the second quarter of 2008.

Worldwide revenue decreased 17.4% to $2,870.7 million from $3,476.9 million in the second quarter of 2008. Domestic revenue for the second quarter of 2009 decreased 12.9% to $1,524.5 million compared to $1,751.3 million in the second quarter of 2008. International revenue decreased 22.0% to $1,346.2 million compared to $1,725.6 million in the second quarter of 2008.

Omnicom's net income for the six months ended June 30, 2009 decreased 22.8% to $397.9 million from $515.6 million in the same period in 2008. Omnicom's diluted net income per common share for the six months ended June 30, 2009 decreased 20.1% to $1.27 per share in 2009 from $1.59 per share in the same period in 2008.

Worldwide revenue for the six months ended June 30, 2009 decreased 15.8% to $5,617.3 million from $6,672.3 million in the same period in 2008. Domestic revenue for the six months ended June 30, 2009 decreased 10.4% to $3,056.7 million from $3,412.5 million in the same period in 2008. International revenue for the six months ended June 30, 2009 decreased 21.4% to $2,560.6 million from $3,259.8 million in the same period in 2008.

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 second quarter earnings conference call, go to www.omnicomgroup.com/InvestorRelations.

    Omnicom Group Inc.

    (Unaudited)
    (In Millions of Dollars, Except Per Share Data)

    Three Months Ended June 30,                     2009              2008
    ---------------------------                     ----              ----

    Revenue                                      $2,870.7         $3,476.9
    Operating expenses                            2,472.6          2,960.1
                                                  -------          -------
    Operating profit                                398.1            516.8
    Net interest expense                             21.9             18.7
                                                     ----             ----
    Income before income taxes                      376.2            498.1
    Income tax expense                              129.7            167.2
    Income from equity method investments             7.3             11.0
                                                      ---             ----
    Net Income                                      253.8            341.9
    Less: Net income attributed to
     noncontrolling interests (a)                   (20.4)           (34.9)
                                                    -----            -----
    Net income  -  Omnicom Group Inc. (a)          $233.4           $307.0
                                                    =====            =====
    Net income per common share  -
     Omnicom Group Inc. (b)
        Basic                                       $0.75            $0.96
        Diluted                                     $0.75            $0.95

    Weighted average shares (in millions) (b)
        Basic                                       308.1            317.5
        Diluted                                     308.6            319.6
    Dividend declared per common share              $0.15           $ 0.15

    (a) On January 1, 2009, we adopted SFAS 160, Noncontrolling Interests
        in Consolidated Financial Statements  - an amendment of ARB No. 51.
        In accordance with the presentation requirements of SFAS 160, we have
        reclassified the amounts reported as minority interest expense in 2008
        as noncontrolling interests to be consistent with the 2009
        presentation.
    (b) On January 1, 2009, we adopted FSP EITF 03-6-1, Determining Whether
        Instruments Granted in Share-Based Payment Transactions Are
        Participating Securities.  Our unvested restricted stock awards pay
        dividends and therefore qualify as participating securities.  In
        accordance with EITF 03-6-1, Net income, for the purposes of the basic
        and diluted net income per common share for the three months ended
        June 30, 2009 and 2008, is reduced by $2.6 million and $3.1 million,
        respectively for a presumed hypothetical distribution of earnings to
        the holders of the unvested restricted stock.  Additionally, the
        unvested restricted shares are excluded from the calculation of
        diluted net income per common share because their inclusion would have
        been anti-dilutive.  The above information reflects the effect of the
        adoption on Earnings per Share, as if we had adopted EITF 03-6-1 at
        the beginning of the period and the 2008 amounts have been adjusted as
        required by EITF 03-6-1.



    Omnicom Group Inc.

    (Unaudited)
    (In Millions of Dollars, Except Per Share Data)

    Six Months Ended June 30,                    2009              2008
    -------------------------                    ----              ----

    Revenue                                    $5,617.3         $6,672.3
    Operating expenses                          4,936.8          5,804.7
                                                -------          -------
    Operating profit                              680.5            867.6
    Net interest expense                           43.3             29.7
                                                   ----             ----
    Income before income taxes                    637.2            837.9
    Income tax expense                            218.4            282.4
    Income from equity method investments          13.2             19.1
                                                   ----             ----
    Net Income                                    432.0            574.6
    Less: Net income attributed to
     noncontrolling interests (a)                 (34.1)           (59.0)
                                                  -----            -----
    Net income  -  Omnicom Group Inc. (a)        $397.9           $515.6
                                                  =====            =====

    Net income per common share  -
     Omnicom Group Inc. (b)
        Basic                                     $1.28            $1.60
        Diluted                                   $1.27            $1.59

    Weighted average shares (in millions) (b)
        Basic                                     307.8            317.9
        Diluted                                   308.5            319.8

    Dividend declared per common share            $0.30            $0.30

    (a) On January 1, 2009, we adopted SFAS 160, Noncontrolling Interests
        in Consolidated Financial Statements  - an amendment of ARB No. 51.
        In accordance with the presentation requirements of SFAS 160, we have
        reclassified the amounts reported as minority interest expense in 2008
        as noncontrolling interests to be consistent with the 2009
        presentation.
    (b) On January 1, 2009, we adopted FSP EITF 03-6-1, Determining Whether
        Instruments Granted in Share-Based Payment Transactions Are
        Participating Securities.  Our unvested restricted stock awards pay
        dividends and therefore qualify as participating securities.  In
        accordance with EITF 03-6-1, Net income, for the purposes of the basic
        and diluted net income per common share for the six months ended June
        30, 2009 and 2008, is reduced by $4.8 million and $5.7 million,
        respectively for a presumed hypothetical distribution of earnings to
        the holders of the unvested restricted stock.  Additionally, the
        unvested restricted shares are excluded from the calculation of
        diluted net income per common share because their inclusion would have
        been anti-dilutive.  The above information reflects the effect of the
        adoption on Earnings per Share, as if we had adopted EITF 03-6-1 at
        the beginning of the period and the 2008 amounts have been adjusted as
        required by EITF 03-6-1.


SOURCE Omnicom Group Inc.

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