Author: Amanda Granath

NEW YORK, Nov. 14, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) today announced a first-mover collaboration with Getty Images (NYSE: GETY),  that will provide it early access to Generative AI by Getty Images. The new tool pairs Getty Images’ best in class creative content with the latest AI technology for a commercially safe and legally indemnified generative AI tool.

As part of their Alpha testing program, Omnicom integrated the tool into Omni, Omnicom’s open operating system. By combining the tool with Omni’s data, agency teams will be able to safely create on-brand content that helps marketers orchestrate better outcomes. They will also be able to bring the tool into client ecosystems and customize it with clients’ proprietary data to produce commercially safe images with the clients’ unique brand style and language. 

“We are honored to be a part of Getty Image’s new Generative AI tool, one that will significantly help our people move from ideation to execution in a seamless manner,” said Omnicom’s EVP, Chief Technology Officer, Paolo Yuvienco. “Getty Images shares our commitment to the responsible use of AI, and that makes their new tool all the more enticing to us, especially given it is built with high quality authentic content. Providing our people and our clients a commercially safe option is a true game changer, and we’re eager to harness the tool’s capabilities alongside them.” 

Generative AI by Getty Images launched in September 2023 and is developed on the state‑of‑the‑art Edify model architecture, which is part of NVIDIA Picasso, a foundry for generative AI models for visual design. The tool is trained solely from Getty Images’ content with uncapped indemnification for commercial use. With broad protection and usage rights, users can download and license any visual they generate, helping Omnicom teams move from ideas to outcomes faster.

“We are giving brands the freedom to explore Generative AI for internal ideation, alongside the confidence and trust to use content in commercial settings with the same protections as our world-class pre-shot libraries,” said Grant Farhall, Chief Product Officer at Getty Images. “We’re honored to have worked with Omnicom in our initial testing to refine in ways that meet the ongoing needs of marketers and advertisers.”

Both companies have taken a strong stance on responsible AI practices. Omnicom is part of the Coalition for Content Provenance and Authenticity (C2PA) that seeks to build and standardize a future framework of content verification and protects the authenticity of AI assets for creators, brands, and consumers. Additionally, Omnicom was the first advertising holding company to join Adobe’s Content Authenticity Initiative (CAI), which is focused on increasing trust and transparency in digital content. This initiative is responsible for the promotion of the C2PA standard.

Getty Images has also taken important steps to protect editorial integrity and public trust in media amidst the rise of AI tools and platforms by signing an open letter alongside several media companies and organizations that lays out proposed principles for regulatory and industry action, including transparency of training sets, clear identification of AI generated content, efforts to eliminate bias in generated content, and others. With the latest tool from Getty Images, users can be confident that the content that they generate is safe to use in commercial settings and will not include any trademarked brands, products, characters or identifiable people.

About Omnicom
Omnicom (NYSE: OMC) (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and branding, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

About Getty Images
Getty Images (NYSE: GETY) is a preeminent global visual content creator and marketplace that offers a full range of content solutions to meet the needs of any customer around the globe, no matter their size. Through its Getty Images, iStock and Unsplash brands, websites and APIs, Getty Images serves customers in almost every country in the world and is the first-place people turn to discover, purchase and share powerful visual content from the world’s best photographers and videographers. Getty Images works with over 541,000 contributors and more than 310 content partners to deliver this powerful and comprehensive content. Each year Getty Images covers more than 160,000 news, sport and entertainment events providing depth and breadth of coverage that is unmatched. Getty Images maintains one of the largest and best privately-owned photographic archives in the world with millions of images dating back to the beginning of photography.

Revenue of $3,578.1 million, with organic growth of 3.3%

Operating income of $560.8 million

Operating income margin of 15.7%

Diluted earnings per share of $1.86

NEW YORK, Oct. 17, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) today announced results for the quarter ended September 30, 2023.

“We are pleased with our strong organic revenue growth of 3.3%, with notable performances in our Advertising & Media, Precision Marketing, and Healthcare disciplines. Our year-to-date organic growth of 4.0% remains in line with our full-year expectations, which reflects the resiliency of our business even in periods of economic uncertainty,” said John Wren, Chairman and Chief Executive Officer of Omnicom. “Omnicom continued to post strong profitability and earnings growth in the quarter, and our recent business wins validate the benefits of our client strategy in this rapidly evolving marketplace. We are very well positioned for a recovery in business conditions, with a strong balance sheet and leading creativity in all of our service disciplines.”

Third Quarter 2023 Results

 

Revenues
Reported revenue in the third quarter of 2023 increased $134.7 million, or 3.9%, to $3,578.1 million. Worldwide revenue growth in the third quarter of 2023 compared to the third quarter of 2022 was led by an increase in organic growth of $113.1 million, or 3.3%.  The impact of foreign currency translation increased  revenue by $59.1 million, or 1.7%.  Acquisition revenue, net of disposition revenue, reduced revenue by $37.5 million, or 1.1%, primarily due to dispositions earlier in the year in the Execution & Support discipline, partially offset by acquisitions in the third quarter of 2023 in the Advertising & Media and Public Relations disciplines. 

Organic growth by discipline in the third quarter of 2023 compared to the third quarter of 2022 was as follows: 6.1% for Advertising & Media, 4.3% for Precision Marketing, 3.8% for Healthcare, and 9.2% for Experiential. Organic decline by discipline was as follows: 5.5% for Public Relations, 3.6% for Execution & Support, and 1.7% for Commerce & Branding.

Organic growth by region in the third quarter of 2023 compared to the third quarter of 2022 was as follows: 2.7% for the United States, 5.7% for Euro Markets & Other Europe, 4.4% for the United Kingdom, 19.2% for Latin America, and 2.5% for Asia Pacific. Organic decline by region was as follows: 10.8% for the Middle East & Africa, and 1.7% for Other North America.

Expenses
Operating expenses increased $119.9 million, or 4.1%, to $3,017.3 million in the third quarter of 2023 compared to the third quarter of 2022.

Salary and service costs, which tend to fluctuate with changes in revenue, are comprised of salary and related costs, third-party service costs, and third-party incidental costs.  Salary and service costs include employee compensation and benefits costs and freelance labor. Salary and service costs increased $110.4 million, or 4.5%, to $2,586.5 million.  Salary and related costs increased $7.6 million, or 0.4%, to $1,756.7 million, primarily due to an increase in headcount as a result of organic growth and acquisitions.  Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs that we bill back to the client directly at our cost and which we are required to include in revenue. Third-party service costs increased $90.6 million, or 15.4%, to $678.8 million as a result of organic growth, and third-party incidental costs increased $12.2 million, or 8.8%, to $151.0 million.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $7.6 million, or 2.7%, to $288.6 million, due to increases in other occupancy expenses, partially offset by lower rent.

SG&A expenses increased $3.4 million, or 3.9%, to $89.8 million, primarily due to higher professional fees related to acquisitions.

Operating Income
Operating income increased $14.8 million, or 2.7%, to $560.8 million in the third quarter of 2023 compared to the third quarter of 2022. The related operating income margin was 15.7% compared to 15.9% for the third quarter of 2022.

Interest Expense, net
Net interest expense in the third quarter of 2023 increased $9.2 million to $38.3 million compared to the third quarter of 2022. Interest expense increased $1.5 million to $53.5 million, and interest income decreased $7.7 million to $15.2 million primarily due to lower cash and short term investment balances.

Income Taxes
Our effective tax rate of 26% in the third quarter of 2023 was flat with the rate in the third quarter of 2022.

Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net income – Omnicom Group Inc. for the third quarter of 2023 increased $7.4 million, or 2.0%, to $371.9 million compared to the third quarter of 2022. Diluted shares outstanding for the third quarter of 2023 decreased 3.1% to 199.9 million from 206.3 million in the third quarter of 2022 as a result of net share repurchases. Diluted net income per share of $1.86 increased $0.09, or 5.1%, from $1.77 per share.

EBITA
EBITA increased $15.0 million, or 2.6%, to $581.1 million in the third quarter of 2023 compared to the third quarter of 2022. The related EBITA margin was 16.2% compared to 16.4% for the third quarter of 2022.

Risks and Uncertainties
Current global economic challenges, including the war in Ukraine, high and sustained inflation, rising interest rates, supply chain disruptions, credit market deterioration, and other macroeconomic factors, could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We closely monitor economic conditions, client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions, reductions in client revenue, changes in client creditworthiness, and other developments.

Definitions – Components of Revenue Change
We 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.

Conference Call
Omnicom will host a conference call to review its financial results on Tuesday, October 17, 2023 at 4:30 p.m. Eastern Time. Participants can listen to the conference call by calling 844-291-5494 (domestic) or 409-207-6995 (international), along with access code 4961768. The call will also be simulcast and archived on our investor relations website.

Corporate Responsibility
At Omnicom, we are committed to promoting responsible practices and making positive contributions to society around the globe. Please explore our website (omnicomgroup.com/corporate-responsibility) for highlights of our progress across the areas on which we focus: Empower People, Protect Our Planet, Lead Responsibly.

About Omnicom
Omnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and branding, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries. 

Non-GAAP Financial Measures
We present financial measures determined in accordance with generally accepted accounting principles in the United States (“GAAP”) and adjustments to the GAAP presentation (“Non-GAAP”), which we believe are meaningful for understanding our performance. EBITA is defined as operating income before interest, taxes, and amortization of intangible assets, and EBITA margin is defined as EBITA divided by revenue. 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 arising from acquisitions). We also use Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITA, Adjusted EBITA Margin, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom Group Inc. and Adjusted Net Income per diluted share – Omnicom Group Inc. as additional operating performance measures. We believe these measures are useful in evaluating the impact of certain items on operating performance and allow for comparability between reporting periods. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. Non-GAAP financial measures as reported by us may not be comparable to similarly titled amounts reported by other companies.

Forward-Looking Statements
Certain 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 war in Ukraine, the lingering effects of the COVID-19 pandemic, high and persistent inflation in countries that comprise our major markets, rising interest rates, and 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 related 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;effectively managing the risks, challenges and efficiencies presented by utilizing Artificial Intelligence (AI) technologies and partnerships in our business; and risks related to our environmental, social and governance goals and initiatives, including impacts from regulators and other stakeholders, and the impact of factors outside of our control on such goals and initiatives. 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 Annual Report on Form 10-K for the year ended December 31, 2022. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements.

SOURCE Omnicom Group Inc.

CEO of DDB Mudra Group to oversee creative agency group

MUMBAI, India, Oct. 17, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) Chairman and CEO John Wren today named Aditya Kanthy as CEO of the newly formed Omnicom Advertising Services group in India. Kanthy will oversee Omnicom’s creative agencies in the region, focusing on talent, cross agency collaboration, and innovation to drive growth in one of the company’s fastest growing markets. The respective creative agencies within the group – DDB, BBDO and TBWA – will maintain their current branding in the Indian market.

Omnicom Advertising Services will bring together the power of Omnicom to provide exceptional integrated solutions to meet the needs of clients in India.The group will capitalize on the top talent housed within its leading networks and work in partnership with other Omnicom agencies, such as Omnicom Media Group, to further strengthen Omnicom’s comprehensive offering in India. Omnicom recently announced the creation of large global capability centers with four campuses out of Bangalore, Hyderabad, Chennai and Gurgaon.

“This year India will become the most populous nation on the planet. It is an important growth engine for Omnicom. By centralizing the leadership of three creative powerhouses under Aditya, we will continue to build on our agencies’ strong foundations to deliver a wider breadth of capability and scale for our clients,” says John Wren, Chairman and CEO, Omnicom. “Aditya brings deep experience to the newly created Omnicom Advertising Services, and our India operations is primed to thrive under his leadership.”

Kanthy, currently CEO of DDB Mudra Group, began his career in Mudra in 2003 as a strategic planner, taking on various responsibilities over the years including Chief Strategy Officer, a role in which he helped shape India’s most successful independent advertising agency into an Omnicom-owned integrated marketing communications group. As the new leader of Omnicom Advertising Services India, he will further strengthen Omnicom’s presence and ensure all of our capabilities are extended to our top clients.

Speaking about this development, Aditya Kanthy said, “Omnicom is the most creative global network in the world. Our agencies represent the enduring power of creativity to build brands and businesses. I look forward to bringing the might of the Omnicom network to clients in India and continue to attract the best creative talent in one of the most exciting markets in the world.”

ABOUT OMNICOM
Omnicom (NYSE – OMC) 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.

SOURCE Omnicom Group Inc.

Advertising Week New York gathers professionals across the advertising, marketing, technology and media industries to connect in-person and digitally around the globe. With over 600 speakers and more than 400 sessions, #AWNewYork23 will drive thoughtful dialogue around the latest innovations and big issues shaping our industry.  

Beginning on Monday, October 16, Omnicom will lead conversations at Advertising Week with featured speakers from across its agencies and networks. Join us as we explore the transformative force of generative AI, the power of narrative in media planning and much more. View the full schedule here. 

Highlights for the week include: 

Monday, October 16^th 

11:20AM | “Building Trust and Relevance with Conscientious Consumers” with Chrissie Hanson, CEO, OMD USA 

4:50PM | “Why Advertising Must Save TV” with Kelly Metz, Managing Director, Advanced TV Activation, OMG 

Tuesday, October 17^th 

3:20PM | “Generative AI and the Changing Advertising Landscape” with Vincent Yates, Chief Data Scientist, Credera 

4:30PM | “The Body Clock & The Media: From Menstruation to Menopause and Everything in Between” with Kathleen Saxton, Chief Marketing Officer, Omnicom 

Wednesday, October 18^th 

10:40AM | “The Power of Media to Transform Culture: Gun Violence in America” with David Lubars, Chief Creative Officer, BBDO Worldwide 

11:20AM | “Changemakers Conversation: Gen Z and Their CMO Parents” with Margaret Molloy, Global Chief Marketing Officer, Siegel+Gale 

Thursday, October 19^th  

10:40AM | “CTV: Rise of the Performance Storyteller” with Georgina Thomson, Head of Investment, Beauty Co Lab, Omnicom 

4:10PM | “Remember the Humane: Defining Community and Online Spaces in the AI Revolution” with Alex Hesz, Chief Strategy Officer, Omnicom 

NEW YORK, Oct. 10, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) will publish its third quarter 2023 results on Tuesday, October 17, 2023 after the New York Stock Exchange close of trading. The company will also host a conference call to review such financial results on Tuesday, October 17, 2023, starting at 4:30 p.m. Eastern Time. Participants may listen to the conference call by dialing 844-291-5494 (domestic) or 409-207-6995 (international), along with access code 4961768. The conference call will be simulcast and archived on our website at investor.omnicomgroup.com. 

About Omnicom
Omnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and branding, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

Glen Lomas becomes Global President and Chief Operating Officer 

NEW YORK, Oct. 4, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) Chairman and CEO John Wren today announced the elevation of Alex Lubar as Global CEO of DDB Worldwide. Lubar succeeds current Global CEO Marty O’Halloran who will continue as Chairman. In addition, Glen Lomas currently CEO, DDB EMEA, based in London, becomes Global President and Chief Operating Officer in partnership with Alex.

“We are pleased to announce these changes as DDB has reclaimed its title of being one of the top creative agencies in the world, including 2023 Cannes Network of the Year,” said John Wren, Chairman and CEO, Omnicom. “Marty’s dedication to DDB has made him an integral part of the network’s culture and operations, and we thank him for his strong leadership during the past four years as CEO. With extensive global leadership credentials within the industry, we are confident that Alex, supported by Glen, will continue to elevate the network and build upon its legacy of creative excellence.”

Lubar was appointed President and Chief Operating Officer of DDB Worldwide last October 2022, following ten years at McCann. He held several regional leadership roles during the course of his time there including President, McCann North America, head of McCann’s Asia Pacific region, and CEO of McCann London.

Said Lubar about his new role, “Since its inception, DDB has unlocked the power of human emotion to make millions of different people change how they behave, feel, and transact with brands and businesses around the world. We believe that creativity, in all its modern forms, has the power to profoundly transform our clients’ businesses. I am honored to have the opportunity to lead Bill Bernbach’s legacy into the future with such a talented global staff and leadership team who all share the same vision.”

Lomas has unparalleled international client experience at DDB having been CEO of Europe, Middle East, and Africa, DDB’s largest region and with the network since 1995. Based in London, he is responsible for the EMEA region and has built successful client teams across geographies while creating an environment where creativity and effectiveness flourish across the network.

Said Lomas about his appointment: “It has always been a privilege to work at DDB and it is a great honor to take on this role. DDB has always been where brilliant, unpretentious people turn up each day to apply their creativity to solving problems. The problems and solutions change, but that culture doesn’t. I love what this network is capable of when it comes together, as demonstrated this year at Cannes, and Alex and I are here to ensure that spirit continues and the network keeps evolving to attract the most ambitious talent and clients.”

O’Halloran has been a leader within the DDB network for close to four decades and took over the role of Global CEO in 2020. Under his leadership, DDB won 2023 Network of the Year at Cannes, Network of the Year for the past 3 years at D&AD, and Network of the Year at Effie US and Latina.

“It has been my honor to lead DDB over the past 4 years,” said O’Halloran. “The talent across our regions is incredible and together we’ve been able to produce work that has achieved transformative results for our clients and has been awarded as some of the best creativity in the world. As part of this orchestrated succession plan, there is no doubt in my mind Alex will continue to lead the DDB network to new heights. I look forward to working in a Chairman’s capacity with Alex and Glen as they partner in leading the way forward with their global leadership team.”

ABOUT DDB WORLDWIDE     
DDB Worldwide (www.ddb.com) is one of the world’s largest and most influential advertising and marketing networks which includes DDB branded agencies, along with adam&eveDDB (London, Berlin, New York), DM9 and Africa (both in Brazil), alma (Miami), Mango, Track and Rodgers Townsend. DDB has been awarded numerous accolades from the industry’s leading awards shows including 2023 Global Network of the Year by the Cannes Lions International Festival of Creativity, D&AD Agency Network of the Year for three consecutive years 2023, 2022, 2021, and Effie’s US Agency of the Year in 2022 and 2023. WARC has listed DDB as one of the Top 3 Global Networks for 12 of the last 15 years. The network’s clients include MARS, McDonald’s, Molson Coors, Volkswagen, Reynolds Consumer Products, Peloton, JetBlue, Adidas, Lucozade, CALM, PlayStation, Marmite, Waitrose & Partners, and the U.S. Army, among others. Founded in 1949, DDB is part of the Omnicom Group (NYSE: OMC) and consists of approximately 10,000 employees across over 140 offices in over 60 countries, with its headquarters in New York, NY.     

ABOUT OMNICOM
Omnicom (NYSE – OMC) 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.

SOURCE Omnicom Group Inc.

Omnicom PR Group (OPRG) is now the leading global network for corporate, public affairs and bipartisan political consulting

NEW YORK, Sept. 7, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) today announced its public relations division, Omnicom PR Group (OPRG), has acquired PLUS Communications, a top public affairs firm, and FP1 Strategies, a leading political consultancy. The acquisitions will accelerate growth, expand existing offerings, and further solidify OPRG ‘s leadership position in public affairs, corporate and political consulting.

“With our current roster of public affairs and political consulting firms including DDC, GMMB, Mercury, Portland, and Vox, OPRG is already a powerful partner to our clients and a force in the industry,” said OPRG Global CEO Chris Foster. “With the addition of PLUS Communications and FP1 Strategies and their deep expertise in healthcare, technology and crisis communications, our ability to serve our clients on the global public affairs stage is now at a whole new level.”

PLUS Communications was established as a public affairs consulting firm specializing in corporate and crisis communications including coalition building, grassroots mobilization, advertising, digital engagement and media relations. The firm employs more than 200 professionals, including 20 partners with unrivaled experience representing multinational corporations, trade associations and non-profit organizations across a host of industries. PLUS Communications is headquartered in Arlington, VA, with regional offices located in Richmond, VA and Austin, Texas.

“The network and knowledge that OPRG brings to the table is unrivaled. Chris Foster and I have known each other for many years. His experience in corporate and public affairs coupled with the cross-agency collaboration and capabilities he has built at OPRG will drive our firm’s ability to deliver even more innovative solutions to some of the most complex regulatory and reputational challenges for our clients,” said Managing Partner Dave DenHerder.

FP1 Strategies, a campaign advertising and consulting firm serving candidates for public office and public policy organizations, was founded in 2011 by Danny Diaz, Jon Downs and Terry Nelson, with Rob Jesmer joining a year later.

Managing Partner Terry Nelson said, “Our relationship with OPRG is going to help Plus and FP1 tackle clients’ issues in new and more powerful ways. Just as exciting to me are the new opportunities being a part of OPRG offers our people.”

The PLUS and FP1 management teams will remain in place, and the agencies will continue to operate under their current brands.

About Omnicom PR Group (OPRG) 
Omnicom PR Group (OPRG) is the largest global network of communications and consulting agencies in the world. It is home to three of the top global PR agencies Fleishman Hillard, Ketchum, Porter Novelli and more than a dozen specialist agencies in corporate and public affairs, political consulting and advertising, language strategy, global health strategy and organizational transformation. OPRG is part of Omnicom (NYSE: OMC). www.TeamOPRG.com.

About PLUS Communications
PLUS Communications is a Beltway-based consulting firm specializing in campaign management, media relations, coalition building, award-winning advertising, cutting-edge digital engagement, crisis communications, litigation support and message development.  Distinguished for its campaign-style approach, the firm employs more than 200 professionals, including more than one dozen partners with unrivaled experience advising Fortune-500 companies, trade associations and non-profit organizations across a host of industries.  PLUS Communications has received many of the highest accolades in the communications industry, including PRWeek’s Best in Public Affairs, Best in Crisis, and Best for a Cause awards, in addition to being named a finalist for “Outstanding Midsize Agency.”  To learn more about PLUS Communications, PlusPR.com. 

About FP1 Strategies
Founded in 2011, FP1 Strategies is one of the country’s top general consulting and political advertising firms. Since its inception, FP1 has helped elect 31 U.S. Senators, 8 Governors, 56 Members of Congress and 4 Attorneys General. FP1’s creative team has earned 113 Pollie Awards and 75 Reed Awards, including industry honors for Overall Best TV Ad, Overall Best Radio Ad, Best Republican TV Ad Campaign, Best in Show, Best U.S. Senate TV Ad, Best U.S. House TV Ad, Best Ballot Initiative TV Ad, Best Public Affairs TV Ad and Best Presidential Primary TV Ad. To learn more about FP1 Strategies, FP1.com. 

NEW YORK and SAO PAOLO , July 27, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) today announced its media services division, Omnicom Media Group, has acquired Outpromo and Global Shopper, two of Brazil’s leading connected commerce and retail media agencies. The acquisitions create the foundation for a dedicated, end-to-end e-commerce and retail media performance agency in the Brazilian market for Omnicom Media Group.  

Outpromo was founded in Sao Paolo in 1999 as a shopper marketing agency. Over its two-plus decades, the agency has evolved and expanded its offer to become a leader in building and growing brands in an omni-commerce world. Its 250 professionals deliver specialty services – including retail e-marketing, e-commerce, social commerce and retail media – to clients across the food and beverage, household products and skincare categories, among others. Outpromo has operated as a partner to Omnicom agencies in Brazil since 2014 and shares clients like Adidas, Heineken, and P&G, among others.

Global Shopper’s offer to brands is concentrated around three fundamental pillars: commerce, innovation and digital transformation. From its Sao Paulo headquarters, Global Shopper’s 50+ professionals deliver frictionless, always-on experiences between brands and consumers, creating a constant and efficient presence in the lives of their customers across a broad spectrum of consumer product categories, including food and beverage, health and beauty, footwear, and electronics. 

Ricardo Franken, CEO of Outpromo, and Mauricio Gallian, CEO of Global Shopper, will retain a minority stake in the companies and will continue to serve in their current roles.

“We have known Mauricio and Ricardo for many years, and they have been terrific partners to Omnicom agencies,” said Omnicom Media Group CEO Florian Adamski. “With Global Shopper and Outpromo now part of our group, OMG is gaining deep commerce and retail media expertise in Latin America’s largest market. Connecting this expertise with Omni Commerce will create end-to-end solutions that enable always-on insights, activation, optimization and attribution across the entire commerce landscape. The result is better commerce outcomes for clients – theirs, ours, those that we currently share and those that we will win together.”

“Omnicom Media Group and Global Shopper share a view of the commerce landscape as a constantly evolving integrated ecosystem of services and partnerships, where the best data, technology and talent combine to deliver consumer experiences that drive sales and grow share,” says Global Shopper CEO Mauricio Gallian. “From this common perspective, we will partner to advance our clients’ results not only in conversion but also in awareness and consideration through a full funnel view and a deep understanding of the entire consumer journey.”  

Outpromo CEO Riccardo Franken added, “The combination of our category and regional expertise and Omnicom Media Group’s industry leading tools and technology, powered by Omni, translates to a big win for our clients and our people.”  

The acquisition is expected to close in the third quarter and is subject to customary closing conditions, including regulatory approval. 

About Omnicom Media Group 
Omnicom Media Group (OMG), the media services division of Omnicom Group Inc. (NYSE: OMC) – delivers transformational experiences for consumers, clients, and talent. Powered by the Omni marketing orchestration system, OMG connects best -in-class capabilities that enable our full-service media agencies OMD, PHD and Hearts & Science to deliver more relevant and actionable consumer experiences; more productive and proactive client experiences; and more collaborative and rewarding talent experiences for the more than 23,000 people serving the world’s leading brands in OMG agencies around the globe. 

About Outpromo
Outpromo is an omnichannel commerce agency specializing in planning and activating brand experiences across physical and digital environments. Outpromo promotes brand and consumer engagement through a tailor-made approach integrating Growth Strategy, Growth Marketing and Growth Sciences to deliver better outcomes to clients. Founded in Sao Paolo in 1999, Outpromo’s 250 professional deliver specialty services – including retail e-marketing, e-commerce, social commerce and retail media – to clients across the food and beverage, household products and skincare categories, among others. Outpromo serves brands such as Adidas, Diageo, Heineken, Heinz, L’Occitane, Nivea, P&G and Reckitt. 

About Global Shopper
Global Shopper is a connected commerce agency with a unique approach to driving brand growth. Global Shopper’s offer to brands is concentrated around three fundamental pillars: commerce, innovation, and digital transformation. From its Sao Paulo headquarters, Global Shopper’s 50+ professionals deliver frictionless, always-on experiences between brands and consumers, creating a constant and efficient presence in the lives of their customers across a broad spectrum of consumer product categories. Global Shopper serves as a connected commerce agency for clients such as: C&A, J&J, and Sanoifi, among others.

SOURCE Omnicom Group Inc.

NEW YORK, July 25, 2023 /PRNewswire/ — The Board of Directors of Omnicom (NYSE: OMC) declared a quarterly dividend of 70 cents per outstanding share of the corporation’s common stock. The dividend is payable on October 12, 2023 to Omnicom common shareholders of record at the close of business on September 21, 2023.

About Omnicom
Omnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

Revenue of $3,609.9 million, with organic growth of 3.4%

Operating income of $550.7 million

Operating income margin of 15.3%

Diluted earnings per share of $1.82

NEW YORK, July 18, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) today announced results for the quarter ended June 30, 2023.

“Organic revenue grew 3.4% in the second quarter and 4.3% year-to-date, placing us comfortably within our expected range and driving strong growth in earnings per share,” said John Wren, Chairman and Chief Executive Officer of Omnicom. “While the balance of the year will continue to see economic uncertainty, we are entering a dynamic and exciting new era for our company.”  Wren added, “Omnicom has secured leading positions in generative AI technologies and partnerships to deliver on our promise to achieve the best outcomes for our clients and increase the operational efficiency of our company.”

Second  Quarter 2023 Results

 

Revenues
Reported total revenue in the second quarter of 2023 increased $42.7 million, or 1.2%, to $3,609.9 million.  Worldwide revenue growth in the second quarter of 2023 compared to the second quarter of 2022 was led by an increase in revenue from organic growth of $121.4 million, or 3.4%.  Acquisition revenue, net of disposition revenue, decreased $54.3 million, or 1.5%, primarily reflecting dispositions in the Execution & Support discipline in the first and second quarter of 2023.  The impact of foreign currency translation was a decrease of $24.4 million, or 0.7%.

Organic growth by discipline in the second quarter of 2023 compared to the second quarter of 2022 was as follows: 5.1% for Advertising & Media, 9.2% for Experiential, 3.0% for Healthcare, 2.3% for Precision Marketing, 2.4% for Commerce & Brand Consulting, and 0.1% for Public Relations. Execution & Support decreased 3.8%. In the first quarter of 2023, we realigned the classification of certain services primarily within our Commerce & Brand Consulting, Execution & Support, and Experiential disciplines, and revenue by discipline amounts for prior periods were revised to reflect the current period presentation.

Organic growth by region in the second quarter of 2023 compared to the second quarter of 2022 was as follows: 2.4% for the United States, 7.5% for Asia Pacific, 2.6% for Euro Markets & Other Europe, 8.4% for Other North America, 2.5% for the United Kingdom, 6.9% for Latin America, and 4.0% for the Middle East & Africa.

Expenses
Operating expenses increased $33.6 million, or 1.1%, to $3,059.2 million in the second quarter of 2023 compared to the second quarter of 2022. Included in operating expenses in the second quarter of 2023 is the net impact from a gain on the disposition of a subsidiary in our Execution & Support discipline of $78.8 million ($55.9 million net of income tax) and $72.3 million ($54.5 million net of income tax) of repositioning costs primarily related to severance incurred in the period in connection with a rebalancing of our workforce.

Salary and service costs, which tend to fluctuate with changes in revenue, are comprised of salary and related costs, third-party service costs, and third-party incidental costs.  Salary and service costs include employee compensation and benefits costs and freelance labor. Salary and service costs increased $51.8 million, or 2.0%, to $2,617.8 million.  Salary and related costs decreased $28.8 million, or 1.6%, to $1,772.0 million. While headcount increased as a result of organic growth, the increase was offset by reductions from dispositions in our Execution & Support discipline in the first and second quarters of 2023.  Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients.  Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs that we bill back to the client directly at our cost and which we are required to include in revenue. Third-party service costs increased $86.8 million, or 13.8%, to $715.8 million, and third-party incidental costs decreased $6.2 million, or 4.6%, to $130.0 million and were impacted by the dispositions in our Execution & Support discipline.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $4.7 million, or 1.6%, to $297.7 million, due to increases in other occupancy expenses, partially offset by lower rent.

SG&A expenses decreased $11.8 million, or 10.6%, to $99.1 million, primarily due to lower professional fees and lower marketing related costs.

Operating Income
Operating income increased $9.1 million, or 1.7%, to $550.7 million in the second quarter of 2023 compared to the second quarter of 2022.  The related operating income margin was 15.3% compared to 15.2% for the second quarter of 2022.  In the second quarter of 2023, non-GAAP adjusted operating income of $544.2 million, which excludes the net effect of a gain on the disposition of a subsidiary offset by repositioning costs, increased 0.5%, and the non-GAAP adjusted operating income margin was 15.1%.

Interest Expense, net
Net interest expense in the second quarter of 2023 decreased $12.7 million to $27.4 million compared to the second quarter of 2022.  Interest expense increased $6.3 million to $57.5 million, and interest income increased $19.0 million to $30.1 million, primarily as a result of higher interest rates on cash balances and short-term investments.

Income Taxes
Our effective tax rate of 27.0% in the second quarter of 2023 increased from 26.5% in the second quarter of 2022. The effective tax rate in the second quarter of 2023 was unfavorably impacted by a higher tax rate on a gain on the disposition of a subsidiary and a lower tax benefit on the repositioning costs in certain markets.

Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net income – Omnicom Group Inc. for the second quarter of 2023 increased $17.9 million, or 5.1%, to $366.3 million compared to the second quarter of 2022.  The net impact of the gain on the disposition of a subsidiary, offset by repositioning costs, increased Net income – Omnicom Group Inc. by $1.4 million. Diluted shares outstanding decreased to 201.6 million, or 2.6%, from 206.9 million in the second quarter of 2022 as a result of net share repurchases.  Diluted net income per share of $1.82 increased $0.14, or 8.3%, from $1.68 per share. Excluding the net effect of a gain on the disposition of a subsidiary, offset by repositioning costs, non-GAAP adjusted diluted earnings per share for the second quarter of 2023 was $1.81.

EBITA
EBITA increased $7.6 million, or 1.4%, to $570.0 million in the second quarter of 2023 compared to the second quarter of 2022.  The related EBITA margin was 15.8% compared to 15.8% for the second quarter of 2022.   In the second quarter of 2023, non-GAAP adjusted EBITA of $563.5 million, which excludes the net effect of a gain on the disposition of a subsidiary offset by repositioning costs, increased 0.2%, and the non-GAAP adjusted EBITA margin was 15.6%.

Risks and Uncertainties
Current global economic challenges, including the war in Ukraine, high and sustained inflation, rising interest rates, supply chain disruptions, credit market deterioration, and other macroeconomic factors, could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We closely monitor economic conditions, client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions, reductions in client revenue, changes in client creditworthiness, and other developments.

Definitions – Components of Revenue Change
We 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.

Conference Call
Omnicom will host a conference call to review its financial results on Tuesday, July 18, 2023 at 4:30 p.m. Eastern Time. Participants can listen to the conference call by calling 877-692-8955 (domestic) or 234-720-6979  (international), along with access code 336067. The call will also be simulcast and archived on our investor relations website.

Corporate Responsibility
At Omnicom, we are committed to promoting responsible practices and making positive contributions to society around the globe. Please explore our website (omnicomgroup.com/corporate-responsibility) for highlights of our progress across the areas on which we focus: Empower People, Protect Our Planet and Lead Responsibly. 

About Omnicom
Omnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

Non-GAAP Financial Measures
We present financial measures determined in accordance with generally accepted accounting principles in the United States (“GAAP”) and adjustments to the GAAP presentation (“Non-GAAP”), which we believe are meaningful for understanding our performance. EBITA is defined as operating income before interest, taxes, and amortization of intangible assets, and EBITA margin is defined as EBITA divided by revenue. 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 arising from acquisitions). We also use Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITA, Adjusted EBITA Margin, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom Group Inc. and Adjusted Net Income per diluted share – Omnicom Group Inc. as additional operating performance measures. We believe these measures are useful in evaluating the impact of certain items on operating performance and allow for comparability between reporting periods. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in accordance with GAAP. Non-GAAP financial measures as reported by us may not be comparable to similarly titled amounts reported by other companies.

Forward-Looking Statements
Certain 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 war in Ukraine, the lingering effects of the COVID-19 pandemic, high and persistent inflation in countries that comprise our major markets, rising interest rates; 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 related 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; effectively managing the risks, challenges and efficiencies presented by utilizing Artificial Intelligence (AI) technologies and partnerships in our business; and risks related to our environmental, social and governance goals and initiatives, including impacts from regulators and other stakeholders, and the impact of factors outside of our control on such goals and initiatives. 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 Annual Report on Form 10-K for the year ended December 31, 2022. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements.

LONDON, July 11, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) today announced its media services division, Omnicom Media Group, has acquired Ptarmigan Media, a specialist agency that provides end-to-end media and marketing solutions to financial services brands.

Founded in the UK in 1993, Ptarmigan delivers a range of services including fully integrated media planning and buying, market research, search and social, as well as content and creative. The company specializes in serving financial services clients in the Asset Management, Life and Pensions, Banking, Trading and Platforms, Wealth Management, Fintech, and Insurance sectors across APAC, EMEA and North America. Ptarmigan is headquartered in London and has several office locations around the world, including Hong Kong, New York, Singapore and Sydney for its 100+ media professionals.

“Ptarmigan and Omnicom Media Group have a shared understanding of the complexities of today’s media marketplace. Together, we can help our clients effectively navigate the market to drive business growth by combining the global strength, tools and technologies of Omnicom Media Group, and the deep category expertise Ptarmigan has built over its three decades working in the financial sector,” says Florian Adamski, CEO of Omnicom Media Group. “The combined capabilities that will result from this acquisition will enable an unprecedented and singular depth of financial services industry expertise and media buying scale, translating to better outcomes for our clients, increased professional opportunities for our people, and accelerated growth as Omnicom Media Group and Ptarmigan join forces.” 

“Ptarmigan has always put clients at the centre of everything we do – and becoming part of Omnicom Media Group continues that commitment,” says Ptarmigan CEO Matt Ball. “Combining our expertise with the scope and scale of Omnicom Media Group’s industry leading tools and technology will have an exponential impact on the value we deliver to the world’s leading financial brands, bringing next level purpose, planning and performance to the challenge of connecting our clients to the world’s financial decision makers.”

Ptarmigan Media will continue to operate as an independent brand within Omnicom Media Group and will be led by its current management team.

About Ptarmigan
Ptarmigan Media is a market leading financial services media agency, specialising in the Asset Management, Investment Banking, Trading, Insurance, and Wealth Management sectors. With headquarters in London and regional offices in New York, Singapore, Hong Kong, Sydney, Taipei, and Tokyo, the agency provides clients with unrivaled access to B2B and B2C audiences in the world’s leading financial centers.

Ptarmigan Media offers a comprehensive range of services including strategic planning, paid advertising, social media management, analytics, and content creation. With a dedicated global team of specialist media professionals, the agency helps the world’s leading financial brands unlock and grow meaningful connections with their most important customers.

About Omnicom Media Group
Omnicom Media Group (OMG), the media services division of Omnicom (NYSE: OMC), delivers transformational experiences for consumers, clients, and talent. Powered by the Omni marketing orchestration system, OMG connects best-in-class capabilities that enable our full-service media agencies OMD, PHD and Hearts & Science to deliver more relevant and actionable consumer experiences; more productive and proactive client experiences; and more collaborative and rewarding talent experiences for the more than 23,000 people serving the world’s leading brands in OMG agencies around the globe. 

About Omnicom
Omnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

NEW YORK, July 10, 2023 /PRNewswire/ — Omnicom (NYSE: OMC) will publish its second quarter 2023 results on Tuesday, July 18, 2023 after the New York Stock Exchange close of trading. The company will also host a conference call to review such financial results on Tuesday, July 18, 2023, starting at 4:30 p.m. Eastern Time. Participants may listen to the conference call by dialing 877-692-8955 (domestic) or 234-720-6979 (international), along with access code 336067. The conference call will be simulcast and archived on our website at investor.omnicomgroup.com. 

About Omnicom
Omnicom (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

NEW YORK, May 19, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) has been named Creative Holding Company of the Year in The One Show 2023. This marks the sixth time within the past decade that Omnicom has won the top spot.

The One Show is the world’s most prestigious award show in advertising, design and digital marketing. It is produced annually by The One Club for Creativity, the world’s foremost non-profit organization whose mission is to support and celebrate the success of the global creative community. Now in its 50^th year, The One Show has a rich legacy of honoring some of the most groundbreaking ideas, created by some of the most remarkable minds in creativity.

Creative Holding Company of the Year is awarded to the Agency Holding Company that garners the most points overall for winning entries. Three Omnicom agency networks – DDB Worldwide, TBWA\Worldwide and BBDO Worldwide – helped contribute to this recognition by placing within the top five of the Network of the Year category. At the agency level, BBDO Canada was named Agency of the Year.

“For 50 years, The One Show has honored exceptional work deemed as the best of the best in our industry,” commented John Wren, Chairman and CEO of Omnicom Group. “I’m proud of our leading-edge agencies who consistently top the charts by creating brilliant work that has an impact on our clients’ brands and businesses. Our ‘Holding Company of the Year’ ranking doesn’t mean anything without their genius, and I congratulate them all on their individual wins.”

“Our esteemed juries rightly recognized the stellar creative work of Omnicom agencies around the world,” said Kevin Swanepoel, CEO, The One Club for Creativity, producers of The One Show.  “We congratulate all agencies within the global holding company, in particular BBDO Canada for being our 2023 Agency of the Year.”

This marks the second consecutive year that Omnicom claimed the most points out of the thousands of agencies, nonprofits, corporations, and individuals from around the world who entered The One Show. The win follows on the heels of Omnicom being named Ad Age‘s Holding Company of the Year for the publication’s 2023 A-List and Creativity Awards. Shortly before that, Omnicom was named the World’s Most Effective Agency Holding Company in the 2021 Global Effie Effectiveness Index.

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 offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

NEW YORK, May 16, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that it will present at the 51st Annual J.P. Morgan Global Technology, Media and Communications Conference in Boston, Massachusetts on Wednesday, May 24, 2023 at 9:20 a.m. Eastern Time. Live and archived webcasts will be available in the investor relations section of www.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 offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

NEW YORK, May 2, 2023 /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 July 7, 2023 to Omnicom Group common shareholders of record at the close of business on June 9, 2023.

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 offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

SOURCE Omnicom Group Inc.

Content Supply Chain solution allows Omnicom to deliver impactful customer experiences at scale for clients

NEW YORK and SAN JOSE, Calif., April 25, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC), the most creatively awarded marketing communications company, is partnering with Adobe to reinvent the creation and delivery of creative content through an enterprise licensing deal of Adobe’s new Content Supply Chain solution.

Through the solution, Omnicom agencies across the globe will now have a unified view of every step of the content process, from planning and production to activation and optimization. The end-to-end solution will enable Omnicom’s agencies to efficiently produce creative content that delivers the most effective customer experiences for the ultimate benefit of Omnicom’s client roster of the world’s top marketers and brands.

The newly launched Adobe Content Supply Chain solution brings together an array of Adobe’s industry-leading creative and experience applications, such as Adobe Creative Cloud, Adobe Workfront and Adobe Experience Manager. Omnicom will connect features of Adobe’s solution with Omni, Omnicom’s end-to-end marketing operating system, providing streamlined workflows, enhanced automation and increased operational efficiency – major value adds for Omnicom’s agencies as they work together to service shared clients. In 2022, 100 of Omnicom’s largest clients were served on average by more than 50 of its agencies across disciplines and geographies. Adobe’s Content Supply Chain solution further connects the people, processes, and technology necessary in providing these specialized, integrated client services.  

“This partnership brings together the most creatively awarded holding company and the leader in creative and marketing tools,” said Paolo Yuvienco, EVP, Chief Technology Officer at Omnicom Group. “The two of us share a goal of providing integrated solutions to brands, and our collaboration brings it to life. Through this offering, our agencies from different disciplines and geographies will remain connected throughout the entirety of the content supply chain, helping to transform our clients’ businesses in a faster, more effective way.”

The comprehensive solution by Adobe will help Omnicom agencies meet growing content demands as clients look to provide a larger quantity and variety of personalized content to customers. Assisting in the rapid development of content will be Adobe Firefly and Adobe Sensei GenAI – the company’s new generative AI capabilities. By utilizing Firefly and Sensei GenAI, along with Omnicom’s deep expertise in artificial intelligence and machine learning, the companies will enable Omnicom agencies to deliver powerful experiences at scale that translate to business value for clients.

“Omnicom is a valued Adobe partner and customer and we’re excited to work together to transform the process of producing and delivering content across their business — and for our shared customers,” said Anil Chakravarthy, President, Digital Experience Business at Adobe. “By combining Omnicom’s creative expertise and audience-driven capabilities with Adobe’s content supply chain solution and generative AI capabilities, we can empower creative teams to work more efficiently and effectively and deliver even more impactful outcomes for the world’s largest agencies and brands.” 

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 offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

Revenue of $3,443.3 million, with organic growth of 5.2%

Operating income of $346.5 million, $465.7 million Non-GAAP adjusted

Operating income margin of 10.1%, 13.5% Non-GAAP adjusted

Diluted earnings per share of $1.11, $1.56 Non-GAAP adjusted

NEW YORK, April 18, 2023 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced results for the quarter ended March 31, 2023.

“Our business grew organic revenue by 5.2% in the first quarter, a solid start to the year,” said John Wren, Chairman and Chief Executive Officer of Omnicom Group Inc. “Despite many macroeconomic, technological and social factors facing our clients, Omnicom is guiding the world’s top companies and their brands to continued growth with highly-specialized marketing and communications services driven by leading analytics, creativity, data, and digital media solutions.” Wren added, “We took operational steps this quarter and have further plans in place to mitigate the impact of potential macro headwinds on our profitability, while continuing to deliver attractive returns.  As we look ahead in 2023, we expect organic growth, portfolio enhancement, financial discipline, and thoughtful capital allocation to continue to benefit our clients and our shareholders.”

First Quarter 2023 Results

Three Months Ended March 31,
$ in millions, except per share amounts	Reported 2023	Non- GAAP Adj.(2)	Non- GAAP 2023 Adj.	Reported 2022	Non- GAAP Adj.(3)	Non- GAAP 2022 Adj.
Revenue	$3,443.3	$—	$3,443.3	$3,410.3	$—	$3,410.3
Operating Income	346.5	119.2	465.7	353.0	113.4	466.4
Operating Income Margin	10.1 %		13.5 %	10.4 %		13.7 %
Net Income 1	227.5	91.0	318.5	173.8	118.2	292.0
Net Income per Share – Diluted 1	$1.11		$1.56	$0.83		$1.39

Notes: 1) Net Income and Net Income per Share for Omnicom Group Inc.; 2) First quarter 2023 operating expenses include $119.2 million ($91.0 million after-tax) related to real estate repositioning costs discussed below; 3) First quarter 2022 operating expenses include $113.4 million ($118.2 million after-tax) related to charges arising from the effects of the war in Ukraine. Effective with the First quarter 2023 reporting,Operating Profit has been renamed Operating Income.  Please refer to non-GAAP adjusted reconciliations on Pages 9-10.

Revenues
Reported total revenue in the first quarter of 2023 increased $33.0 million, or 1.0%, to $3,443.3 million.

Worldwide revenue growth in the first quarter of 2023 compared to the first quarter of 2022 was led by an increase in revenue from organic growth of $178.7 million, or 5.2%.  Acquisition revenue, net of disposition revenue, decreased $35.7 million, or 1.0%, primarily reflecting the disposition of our businesses in Russia announced in the first quarter of 2022.  The impact of foreign currency translation was a decrease of $110.0 million, or 3.2%.

Organic growth by discipline in the first quarter of 2023 compared to the first quarter of 2022 was as follows: 5.1% for Advertising & Media, 7.0% for Precision Marketing, 5.8% for Public Relations, 4.8% for Healthcare, 8.4% for Experiential, 3.6% for Execution & Support, and 3.3% for Commerce & Brand Consulting. In the first quarter of 2023, we realigned the classification of certain services primarily within our Commerce & Brand Consulting, Execution & Support, and Experiential disciplines and revenue by discipline amounts for prior periods were revised to reflect the current period presentation.

Organic growth by region in the first quarter of 2023 compared to the first quarter of 2022 was as follows: 5.1% for the United States, 5.4% for the Euro Markets & Other Europe, 5.9% for the United Kingdom, 2.8% for Asia Pacific, 12.2% for Latin America, 9.5% for the Middle East & Africa, and 6.6% for Other North America.

Expenses
Operating expenses increased $39.5 million, or 1.3%, to $3,096.8 million in the first quarter of 2023 compared to the first quarter of 2022.

Salary and service costs, which tend to fluctuate with changes in revenue, are comprised of salary and related costs, third-party service costs, and third-party incidental costs.  Salary and service costs include employee compensation and benefits costs and freelance labor.  Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients.  Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs that we bill back to the client directly at our cost and which we are required to include in revenue.  Salary and service costs increased $51.1 million, or 2.1%, to $2,542.9 million.  Salary and related costs decreased $16.6 million, or 0.9%, to $1,778.0 million. While headcount increased as a result of organic growth, the increase was offset by the effects of foreign currency translation. Third-party service costs increased $57.5 million, or 9.9%, to $639.3 million and Third-party incidental costs increased $10.2 million, or 8.8%, to $125.6 million primarily due to an increase in organic revenue.

Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, decreased $8.6 million, or 2.9%, to $291.6 million, due primarily to reductions from the effects of foreign currency translation.

SG&A expenses decreased $7.5 million, or 7.8%, to $89.2 million, primarily due to lower professional fees, lower marketing related costs, and reductions from the effects of foreign currency translation.

In connection with the transition to a flexible working environment, a hybrid model which allows for partial remote work, we took certain actions to reduce and reposition our office lease portfolio.  In the first quarter of 2023, we recorded a pretax charge of $119.2 million ($91.0 million, after-tax) primarily related to the non-cash impairment of a portion of the operating lease right-of-use assets and the write-off of the net book value of leasehold improvements at the affected locations. Substantially all the charges will be paid out over the remaining lease term.

Operating Income
Operating income decreased $6.5 million, or 1.8%, to $346.5 million in the  first quarter of 2023 compared to the first quarter of 2022.  The related operating income margin was 10.1% compared to 10.4% for the first quarter of 2022.  In the first quarter of 2023, non-GAAP adjusted operating income of $465.7 million decreased 0.2%, and the non-GAAP adjusted operating income margin was 13.5%.

Interest Expense, net
Net interest expense in the first quarter of 2023 decreased $23.5 million to $19.3 million compared to the first quarter of 2022.  Interest expense increased $3.9 million to $54.9 million, and interest income increased $27.4 million to $35.6 million, primarily as a result of higher interest rates on cash balances and short-term investments.

Income Taxes
Our effective tax rate of 25.5% in the first quarter of 2023 decreased from 37.2% in the first quarter of 2022. The effective tax rate in the first quarter of 2023 was favorably impacted primarily by previously unrecognized tax benefits, partially offset by a lower tax benefit in certain jurisdictions related to the real estate repositioning charge in the quarter and the increase in the U.K. statutory tax rate. The effective tax rate in the first quarter of 2022 was negatively impacted by the non-deductibility of charges arising from the effects of the war in Ukraine, as well as an additional increase in income tax expense related to the disposition of our businesses in Russia.

Net Income – Omnicom Group Inc. and Diluted Net Income per Share
Net income – Omnicom Group Inc. for the first quarter of 2023 increased $53.7 million, or 30.9%, to $227.5 million compared to the first quarter of 2022.  Charges related to real estate repositioning reduced net income – Omnicom Group Inc. by $91.0 million. Diluted shares outstanding decreased to 204.5 million, or 2.5%, from 209.8 million in the first quarter of 2022 as a result of net share repurchases.  Diluted net income per share of $1.11 increased $0.28, or 33.7%, from $0.83 per share.  Excluding the charges related to real estate repositioning, non-GAAP adjusted diluted earnings per share for the first quarter of 2023 was $1.56.

EBITA
EBITA decreased $6.6 million, or 1.8%, to $365.8 million in the first quarter of 2023 compared to the first quarter of 2022.  The related EBITA margin was 10.6% compared to 10.9% for the first quarter of 2022.   In the first quarter of 2023, non-GAAP adjusted EBITA of $485.0 million decreased 0.2%, and the non-GAAP adjusted EBITA margin was 14.1%.

Risks and Uncertainties
Current global economic challenges, including the war in Ukraine, high and sustained inflation, rising interest rates, supply chain disruptions, credit market deterioration, and other macroeconomic factors, could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We closely monitor economic conditions, client revenue levels and other factors. In response to reductions in revenue, we can take actions to align our cost structure with changes in client demand and manage our working capital. However, there can be no assurance as to the effectiveness of our efforts to mitigate any impact of the current and future adverse economic conditions, reductions in client revenue, changes in client creditworthiness, and other developments.

Definitions – Components of Revenue Change
We 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.

Conference Call
Omnicom will host a conference call to review its financial results on Tuesday, April 18, 2023 at 4:30 p.m. Eastern Time. Participants can listen to the conference call by calling 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 Responsibility
At 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. (www.omnicomgroup.com) is a leading global marketing and corporate communications company. Omnicom’s branded networks and numerous specialty firms offer services in advertising, strategic media planning and buying, precision marketing, commerce and brand consulting, experiential, customer relationship marketing (CRM), public relations, healthcare marketing and other specialty communications services to over 5,000 clients in more than 70 countries.

Non-GAAP Financial Measures
We present financial measures determined in accordance with generally accepted accounting principles in the United States (“GAAP”) and adjustments to the GAAP presentation (“Non-GAAP”), which we believe are meaningful for understanding our performance. EBITA is defined as operating income before interest, taxes, and amortization of intangible assets, and EBITA margin is defined as EBITA divided by revenue. 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 arising from acquisitions). We also use Adjusted Operating Income, Adjusted Operating Income Margin, Adjusted EBITA, Adjusted EBITA Margin, Adjusted Income Tax Expense, Adjusted Net Income – Omnicom Group Inc. and Adjusted Net Income per diluted share – Omnicom Group Inc. as additional operating performance measures. We believe these measures are useful in evaluating the impact of certain items on operating performance and allow for comparability between reporting periods. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP. Non-GAAP financial measures as reported by us may not be comparable to similarly titled amounts reported by other companies.

Forward-Looking Statements
Certain 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 war in Ukraine, the lingering effects of the COVID-19 pandemic, high and persistent inflation in countries that comprise our major markets, rising interest rates; 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 related 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; and risks related to our environmental, social and governance goals and initiatives, including impacts from regulators and other stakeholders, and the impact of factors outside of our control on such goals and initiatives. 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 Annual Report on Form 10-K for the year ended December 31, 2022. 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 March 31 (Unaudited) (In Millions, Except Per Share Data)
	2023	2022
Revenue	$3,443.3	$3,410.3
Operating Expenses:
Salary and service costs	2,542.9	2,491.8
Occupancy and other costs	291.6	300.2
Real estate repositioning costs	119.2	—
Charges arising from the effects of the war in Ukraine	—	113.4
Costs of services	2,953.7	2,905.4
Selling, general and administrative expenses	89.2	96.7
Depreciation and amortization	53.9	55.2
Total operating expenses	3,096.8	3,057.3
Operating Income	346.5	353.0
Interest Expense	54.9	51.0
Interest Income	35.6	8.2
Income Before Income Taxes and Income (Loss) From Equity Method Investments	327.2	310.2
Income Tax Expense	83.4	115.5
Income (Loss) From Equity Method Investments	0.1	(0.1)
Net Income	$243.9	$194.6
Net Income Attributed To Noncontrolling Interests	16.4	20.8
Net Income – Omnicom Group Inc.	$227.5	$173.8
Net Income Per Share – Omnicom Group Inc.
Basic	$1.13	$0.83
Diluted	$1.11	$0.83
Weighted average shares
Basic	202.2	208.3
Diluted	204.5	209.8
Dividends Declared Per Common Share	$0.70	$0.70

SOURCE Omnicom Group Inc.

Omnicom Group Inc. Detail of Operating Expenses Three Months Ended March 31 (Unaudited) (In Millions)
	2023	2022
Operating Expenses:
Salary and service costs
Salary and related service costs	$1,778.0	$1,794.6
Third-party service costs(a)	639.3	581.8
Third-party incidental costs(b)	125.6	115.4
Total salary and service costs	2,542.9	2,491.8
Occupancy and other costs	291.6	300.2
Real estate repositioning costs	119.2	—
Charges arising from the effects of the war in Ukraine	—	113.4
Costs of services	2,953.7	2,905.4
Selling, general and administrative expenses	89.2	96.7
Depreciation and amortization	53.9	55.2
Total Operating Expenses	$3,096.8	$3,057.3

• (a)

  Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients.

• (b)

  Third-party incidental costs primarily consist of client-related travel and incidental out-of-pocket costs which we bill back to the client directly at our cost and which we are required to include in revenue.

Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31 (Unaudited) (In Millions)
	2023	2022
Net Income – Omnicom Group Inc.	$227.5	$173.8
Net Income Attributed To Noncontrolling Interests	16.4	20.8
Net Income	243.9	194.6
Income (Loss) From Equity Method Investments	0.1	(0.1)
Income Tax Expense	83.4	115.5
Income Before Income Taxes and Income From Equity Method Investments	327.2	310.2
Interest Income	35.6	8.2
Interest Expense	54.9	51.0
Operating Income	346.5	353.0
Add back: Amortization of intangible assets	19.3	19.4
Earnings before interest, taxes and amortization of intangible assets (“EBITA”)	$365.8	$372.4
Revenue	$3,443.3	$3,410.3
EBITA	$365.8	$372.4
EBITA Margin %	10.6 %	10.9 %

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.

Three Months Ended March 31
	Reported 2023	Non- GAAP Adj.(b)	Non- GAAP 2023 Adj.	Reported 2022	Non- GAAP Adj.(b)	Non- GAAP 2022 Adj.
Revenue	$3,443.3	$—	$3,443.3	$3,410.3	$—	$3,410.3
Operating Expenses	3,096.8	(119.2)	2,977.6	3,057.3	(113.4)	2,943.9
Operating Income	346.5	119.2	465.7	353.0	113.4	466.4
Operating Income Margin %	10.1 %		13.5 %	10.4 %		13.7 %
Add back: Amortization of intangible assets	19.3	—	19.3	19.4	—	19.4
EBITA (a)	$365.8	$119.2	$485.0	$372.4	$113.4	$485.8
EBITA Margin % (a)	10.6 %		14.1 %	10.9 %		14.2 %

• (a)

  See Non-GAAP reconciliation on page 10.

• (b)

  2023 Net Income and Net Income per Share for Omnicom Group Inc. include a $91.0 million after-tax charge on real estate repositioning. 2022 Net Income and Net Income per Share for Omnicom Group Inc. include a $118.2 million after-tax charge arising from the effects of the war in Ukraine.

Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31, 2023 (Unaudited) (Dollars in Millions, Except Per Share Data)
	Non-GAAP Adjusted
	EBITA	Operating Income
Net Income – Omnicom Group Inc.	$227.5	$227.5
Net Income Attributed To Noncontrolling Interests	16.4	16.4
Net Income	243.9	243.9
Income From Equity Method Investments	0.1	0.1
Income Tax Expense	83.4	83.4
Income Before Income Taxes	327.2	327.2
Net Interest Expense	19.3	19.3
Operating Income – Reported	346.5	346.5
Real estate repositioning costs		119.2
Non-GAAP Operating Income – Adjusted		$465.7
Amortization of Intangible Assets	19.3
EBITA – Reported	365.8
Real estate repositioning costs	119.2
EBITA – Adjusted	$485.0

Three Months Ended March 31, 2023 Non-GAAP Adjusted
	Net Income –Omnicom Group Inc.	Diluted Shares	Net Income per Share – Diluted
Net Income – Omnicom Group Inc. – Reported	$227.5	204.5	$1.11
Real estate repositioning costs	91.0	204.5	0.45
Non-GAAP Net Income – Omnicom Group Inc. – Adjusted	$318.5	204.5	$1.56

Non-GAAP Adjusted Income Tax Expense
Net Income – Omnicom Group Inc.	$227.5
Net Income Attributed To Noncontrolling Interests	16.4
Net Income – Reported	243.9
Income From Equity Method Investments	0.1
Income Tax Expense – Reported	83.4
Income Before Income Taxes	$327.2
Income Tax Expense – Reported	83.4
Income tax expense related to real estate repositioning	28.2
Non-GAAP Income Tax Expense – Adjusted	$111.6

The above tables reconcile the GAAP financial measure of Net Income – Omnicom Group Inc. to the non-GAAP financial measures of EBITA Adjusted, Operating Profit Adjusted, Income Tax Expense Adjusted, Net Income – Omnicom Group Inc. Adjusted and Net Income per share – Diluted Adjusted for the period presented. Management believes excluding the charges arising from real estate repositioning provides investors with a better picture of the performance of the business during the period presented.

Omnicom Group Inc. Reconciliation of Non-GAAP Financial Measures Three Months Ended March 31, 2022 (Unaudited) (Dollars in Millions, Except Per Share Data)
	Non-GAAP Adjusted
	EBITA	Operating Income
Net Income – Omnicom Group Inc.	$173.8	$173.8
Net Income Attributed To Noncontrolling Interests	20.8	20.8
Net Income	194.6	194.6
Loss From Equity Method Investments	(0.1)	(0.1)
Income Tax Expense	115.5	115.5
Income Before Income Taxes	310.2	310.2
Net Interest Expense	42.8	42.8
Operating Income – Reported	353.0	353.0
Charges arising from the effects of the war in Ukraine		113.4
Non-GAAP Operating Income – Adjusted		$466.4
Amortization of Intangible Assets	19.4
EBITA – Reported	372.4
Charges arising from the effects of the war in Ukraine	113.4
EBITA – Adjusted	$485.8

Three Months Ended March 31, 2022 Non-GAAP Adjusted
	Net Income –Omnicom Group Inc.	Diluted Shares	Net Income per Share – Diluted
Net Income – Omnicom Group Inc. – Reported	$ 173.8	209.8	$0.83
Charges arising from the effects of the war in Ukraine	118.2	209.8	0.56
Non-GAAP Net Income – Omnicom Group Inc. – Adjusted	$ 292.0	209.8	$ 1.39

Non-GAAP Adjusted Income Tax Expense
Net Income – Omnicom Group Inc.	$173.8
Net Income Attributed To Noncontrolling Interests	20.8
Net Income – Reported	194.6
Loss From Equity Method Investments	(0.1)
Income Tax Expense – Reported	115.5
Income Before Income Taxes	$310.2
Income Tax Expense – Reported	115.5
Income tax expense related to charges arising from the effects of the war in Ukraine	(4.8)
Non-GAAP Income Tax Expense – Adjusted	$110.7

The above tables reconcile the GAAP financial measure of Net Income – Omnicom Group Inc. to the non-GAAP financial measures of EBITA Adjusted, Operating Profit Adjusted, Income Tax Expense Adjusted, Net Income – Omnicom Group Inc. Adjusted and Net Income per share – Diluted Adjusted for the period presented. Management believes excluding the charges arising from the effects of the war in Ukraine provides investors with a better picture of the performance of the business during the period presented.

SOURCE Omnicom Group Inc.