Omnicom Reports Fourth Quarter and Year-End 2003 Results

NEW YORK, Feb. 17 /PRNewswire-FirstCall/ -- Omnicom Group Inc. (NYSE: OMC) today announced that net income for the fourth quarter of 2003 increased 10% to $221.3 million from $201.5 million in the fourth quarter of 2002. Diluted earnings per share increased 8% to $1.17 per share in 2003 from $1.08 per share in 2002.

Worldwide revenue increased 18.3% to $2,506.0 million in the fourth quarter of 2003 from $2,118.8 million in the fourth quarter of 2002. Domestic revenue for the fourth quarter of 2003 increased 15% to $1,327.9 million compared to $1,153.5 million in 2002. International revenue for the fourth quarter of 2003 increased 22% to $1,178.1 million compared to $965.3 million in 2002.

Net income for the twelve months ended December 31, 2003 increased 5% to $675.9 million from $643.5 million in 2002. Diluted earnings per share increased 4% to $3.59 per share in 2003 from $3.44 per share in 2002.

Worldwide revenue for the twelve months ended December 31, 2003 increased 14.4% to $8,621.4 million from $7,536.3 million in 2002. Domestic revenue for the twelve months ended December 31, 2003 increased 10% to $4,720.9 million compared to $4,284.6 million in 2002. International revenue for the twelve months ended December 31, 2003 increased 20% to $3,900.5 million compared to $3,251.7 million in 2002.

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, 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 and 2003 Year-End earnings conference call, go to www.omnicomgroup.com/InvestorRelations.

     Omnicom Group Inc.

     (Unaudited)
     (in Thousands of Dollars, Except Per Share Data)

     Three Months Ended December 31                     2003           2002

     Revenue                                        $2,506,047     $2,118,845

     Operating expenses                              2,135,783      1,785,470

     Operating income                                  370,264        333,375

     Net interest expense                               10,072          7,663

     Income before income taxes                        360,192        325,712

     Income taxes                                      119,651        104,069

     Income after income taxes                         240,541        221,643

     Equity in affiliates/Minority interests           (19,259)       (20,169)

     Net income                                     $  221,282     $  201,474


     Earnings per share
          Basic                                         $ 1.18         $ 1.08
          Diluted                                       $ 1.17         $ 1.08


     Weighted average shares (in thousands)
          Basic                                        187,806        186,055
          Diluted (a)                                  190,014        186,894

     Dividend declared per share                        $ 0.20         $ 0.20

    (a) Diluted earnings per share for 2003 and 2002 was calculated using an
        assumed increase in net income of $313,000 and $244,000 respectively,
        related to the after-tax compensation expense from dividends on
        restricted shares.


     Omnicom Group Inc.

     (Unaudited)
     (in Thousands of Dollars, Except Per Share Data)

     Twelve Months Ended December 31                    2003           2002

     Revenue                                        $8,621,404     $7,536,299

     Operating expenses                              7,456,729      6,432,184

     Operating income                                1,164,675      1,104,115

     Net interest expense                               42,826         30,492

     Income before income taxes                      1,121,849      1,073,623

     Income taxes                                      380,927        375,637

     Income after income taxes                         740,922        697,986

     Equity in affiliates / Minority interests         (65,039)       (54,527)

     Net income                                       $675,883       $643,459


     Earnings per share
          Basic                                          $3.61          $3.46
          Diluted                                        $3.59          $3.44

     Weighted average shares (in thousands)
          Basic                                        187,258        186,094
          Diluted (a)                                  188,656        187,603

     Dividend declared per share                         $0.80          $0.80

    (a) Diluted earnings per share for 2003 and 2002 was calculated using an
        assumed increase in net income of $1,114,000 and $975,000
        respectively, related to the after-tax compensation expense from
        dividends on restricted shares.

SOURCE Omnicom Group Inc.

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