Omnicom Named a Leader in Marketing Creative and Content Services by Independent Research Firm Posted on March 12, 2025March 12, 2025 by Amanda Granath NEW YORK, March 12, 2025 /PRNewswire/ — Omnicom (NYSE: OMC) today announced it has been named a Leader in “The Forrester Wave™: Marketing Creative and Content Services, Q1 2025” by Forrester Research, Inc. Within Forrester’s 17-criterion evaluation, Omnicom’s participating networks – Omnicom Precision Marketing Group (OPMG) and Omnicom Advertising Group (OAG) – received the highest scores possible in seven and four criteria, respectively. OPMG was named a Leader in the evaluation and tied for the highest score in the Strategy category among all participating companies. It received the highest possible scores in the creative and content production, creative commerce, influencer marketing, partner ecosystem, performance creative, pricing flexibility and transparency, and talent strategy criteria. The Forrester evaluation noted that, “Enterprise brands with the need to scale data-driven creativity should consider OPMG.” OAG, which officially launched on January 1, 2025, was also recognized in the evaluation, coming in as a Strong Performer and having the second-highest Current Offering category score among all participating companies. It received the highest possible scores in the brand strategy, creative and content development, global delivery strategy, and performance creative criteria. The Forrester evaluation noted that, “Global enterprise brands that demand creative excellence should consider Omnicom Advertising Group.” “As a company deeply committed to driving meaningful outcomes for our clients, we believe Omnicom’s strong performance on the Forrester Wave™ is a reflection of our relentless focus on innovation, collaboration, and delivering best-in-class solutions at every step of the customer journey,” said John Wren, Chairman and CEO of Omnicom. “For us, being the only company designated as a Leader in the Commerce, Media and Creative Waves underscores the extraordinary talent across our global network and our ability to stay ahead in an ever-evolving industry. I want to congratulate OPMG and OAG on this recognition.” This evaluation comes on the heels of Omnicom and its agencies being named a Leader in “The Forrester Wave™: Media Management Services, Q4 2024” and “The Forrester Wave™: Commerce Services, Q2 2024“. Omnicom’s agencies have been named a Leader across all three of these most recent Forrester evaluations, which Omnicom attributes to its superior capabilities across creative, media and commerce. Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. For more information, read about Forrester’s objectivity here. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. SOURCE Omnicom Group Inc.
OMNICOM TO PRESENT AT THE MORGAN STANLEY TECHNOLOGY, MEDIA & TELECOM CONFERENCE Posted on February 25, 2025 by Amanda Granath NEW YORK, Feb. 25, 2025 /PRNewswire/ — Omnicom Group Inc. (NYSE: OMC) today announced that it will present at the Morgan Stanley Global Technology, Media & Telecom Conference in San Francisco, California on Tuesday, March 4, 2025 at 10:00 a.m. Pacific Time. Live and archived webcasts will be available at the investor relations section of www.omnicomgroup.com. About Omnicom Omnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. SOURCE Omnicom Group Inc.
Omnicom Declares Dividend Posted on February 13, 2025February 13, 2025 by Amanda Granath NEW YORK, Feb. 13, 2025 /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 April 9, 2025 to Omnicom common shareholders of record at the close of business on March 11, 2025. About Omnicom Omnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. SOURCE Omnicom Group Inc.
Omnicom Reports Fourth Quarter and Full Year 2024 Results Posted on February 4, 2025February 5, 2025 by Amanda Granath 2024 Fourth Quarter: Revenue of $4.3 billion, with organic growth of 5.2% Net income of $448.0 million Diluted earnings per share of $2.26; $2.41 Non-GAAP adjusted Operating income of $685.3 million; Non-GAAP Adj. EBITA of $722.2 million with 16.7% margin 2024 Full Year: Revenue of $15.7 billion, with organic growth of 5.2% Net income of $1,480.6 million Diluted earnings per share of $7.46; $8.06 Non-GAAP adjusted Operating income of $2,274.6 million; Non-GAAP Adj. EBITA of $2,434.5 million with 15.5% margin NEW YORK, Feb. 4, 2025 /PRNewswire/ — Omnicom (NYSE: OMC) today announced results for the quarter and full year ended December 31, 2024. “With 5.2% organic revenue growth for both the fourth quarter and full year, and even higher growth in adjusted EBITA and adjusted EPS, our strong operational execution gives us confidence for continued strength in 2025,” said John Wren, Chairman and Chief Executive Officer of Omnicom. “From this position of strength, we are incredibly well prepared for and excited about the complementary combination of businesses and cultures with our proposed acquisition of Interpublic. Together, clients and employees will benefit from expanded products to deliver superior creativity, innovation and effectiveness. We will also bring together unparalleled data assets to market, fueling leading creative, produced at scale, and activated by the world’s top-ranked media practice to drive measurable sales. We see significant upside potential through expected revenue and cost synergies that can drive growth beyond what Omnicom was delivering alone. Fourth Quarter 2024 Results $ in millions, except per share amounts Three Months Ended December 31, 2024 2023 Revenue $ 4,322.2 $ 4,060.9 Operating Income 685.3 646.7 Operating Income Margin 15.9 % 15.9 % Net Income1 448.0 425.7 Net Income per Share – Diluted1 $ 2.26 $ 2.13 Non-GAAP Measures:1 EBITA 707.6 663.3 EBITA Margin 16.4 % 16.3 % Adjusted EBITA 722.2 677.8 Adjusted EBITA Margin 16.7 % 16.7 % Non-GAAP Adjusted Net Income per Share – Diluted $ 2.41 $ 2.26 1) See notes on page 15 . RevenueRevenue in the fourth quarter of 2024 increased $261.3 million, or 6.4%, to $4,322.2 million. Worldwide revenue growth in the fourth quarter of 2024 compared to the fourth quarter of 2023 was led by an increase in organic revenue of $212.2 million, or 5.2%. Acquisition revenue, net of disposition revenue, increased revenue by $73.3 million, or 1.8%. The impact of foreign currency translation reduced revenue by 0.6%. Organic growth by discipline in the fourth quarter of 2024 compared to the fourth quarter of 2023 was as follows: 7.1% for Media & Advertising, 9.1% for Precision Marketing, 10.3% for Public Relations, 1.8% for Execution & Support, and 4.9% for Experiential, partially offset by declines of 4.3% for Healthcare, and 11.6% for Branding & Retail Commerce. Organic growth by region in the fourth quarter of 2024 compared to the fourth quarter of 2023 was as follows: 9.9% for the United States, 1.8% for Asia Pacific, 1.2% for the United Kingdom, 16.1% for Latin America, 0.1% for Other North America, and 1.7% for the Middle East & Africa, partially offset by a decline of 2.1% for Euro Markets & Other Europe. ExpensesOperating expenses increased $222.7 million, or 6.5%, to $3,636.9 million in the fourth quarter of 2024 compared to the fourth quarter of 2023. Included in operating expenses in the fourth quarter of 2024 are $14.6 million of acquisition transaction costs related to the proposed acquisition of The Interpublic Group of Companies, Inc. (“IPG”). Included in operating expenses in the fourth quarter of 2023 are $14.5 million of acquisition transaction costs primarily related to the acquisition of Flywheel Digital. Salary and service costs increased $189.8 million, or 6.4%, to $3,143.8 million. These costs tend to fluctuate with changes in revenue and are comprised of salary and related costs, which include employee compensation and benefits costs and freelance labor, third-party service costs, and third-party incidental costs. Salary and related costs increased $4.2 million, or 0.2%, to $1,910.3 million. Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. Third-party incidental costs that are required to be included in revenue primarily consist of client-related travel and incidental out-of-pocket costs, which are billed back to the client directly at our cost. Third-party service costs increased $170.8 million, or 19.3%, to $1,054.8 million, primarily as a result of organic growth in our Media & Advertising, Experiential, Public Relations and Execution & Support disciplines. Third-party incidental costs increased $14.8 million, or 9.0%, to $178.7 million. Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $29.6 million, or 10.2%, to $320.5 million. The increase is primarily related to our acquisition activity during the year. SG&A expenses decreased $3.3 million, or 2.9%, to $112.3 million. Included in SG&A expenses in the fourth quarter of 2024 are $14.6 million of acquisition transaction costs related to the proposed acquisition of IPG. Included in SG&A expenses in the fourth quarter of 2023 are $14.5 million of acquisition transaction costs primarily related to the acquisition of Flywheel Digital. Operating IncomeOperating income increased $38.6 million, or 6.0%, to $685.3 million in the fourth quarter of 2024 compared to the fourth quarter of 2023, and the related margin was unchanged at 15.9%. Interest Expense, netNet interest expense in the fourth quarter of 2024 increased $11.3 million to $38.1 million compared to the fourth quarter of 2023. Interest expense increased $12.4 million to $65.0 million, primarily due to higher outstanding debt, and interest income increased primarily due to higher average cash balances. In August 2024, we issued $600 million aggregate principal amount of 5.30% Senior Notes due 2034. Net proceeds from the offering, along with available cash, were used to fund the $750 million repayment of our 3.65% Senior Notes due November 1, 2024. Income TaxesOur effective tax rate for the fourth quarter of 2024 was 26.4% compared to 26.5% for the fourth quarter of 2023. Net Income – Omnicom Group Inc. and Diluted Net Income per ShareNet income – Omnicom Group Inc. for the fourth quarter of 2024 increased $22.3 million, or 5.2%, to $448.0 million compared to the fourth quarter of 2023. Diluted shares outstanding for the fourth quarter of 2024 decreased 0.6% to 198.4 million from 199.5 million as a result of net share repurchases. Diluted net income per share of $2.26 increased $0.13, or 6.1%, from $2.13. Non-GAAP Adjusted Net Income per Share – Diluted for the fourth quarter of 2024 increased $0.15, or 6.6%, to $2.41 from $2.26. Non-GAAP Adjusted Net Income per Share – Diluted for the fourth quarter of 2024 excluded $29.6 million of after-tax amortization of acquired intangible assets and internally developed strategic platform assets and acquisition transaction costs, and the fourth quarter of 2023 excluded $25.2 million of after-tax amortization of acquired intangible assets and internally developed strategic platform assets and acquisition transaction costs. We present Non-GAAP Adjusted Net Income per Share – Diluted to allow for comparability with the prior year period. EBITAEBITA increased $44.3 million, or 6.7%, to $707.6 million in the fourth quarter of 2024 compared to the fourth quarter of 2023, and the related margin increased to 16.4% from 16.3%. Adjusted EBITA increased $44.4 million, or 6.6%, to $722.2 million in the fourth quarter of 2024 compared to the fourth quarter of 2023, and the related margin was unchanged at 16.7%. EBITA and Adjusted EBITA excluded amortization of acquired intangible assets and internally developed strategic platform assets of $22.3 million and $16.6 million in the fourth quarters of 2024 and 2023, respectively. Adjusted EBITA also excluded acquisition transaction costs of $14.6 million and $14.5 million in the fourth quarters of 2024 and 2023, respectively. Full Year 2024 Results $ in millions, except per share amounts Twelve Months Ended December 31, 2024 2023 Revenue $ 15,689.1 $ 14,692.2 Operating Income 2,274.6 2,104.7 Operating Income Margin 14.5 % 14.3 % Net Income1 1,480.6 1,391.4 Net Income per Share – Diluted1 $ 7.46 $ 6.91 Non-GAAP Measures:1 EBITA 2,362.1 2,166.5 EBITA Margin 15.1 % 14.7 % Adjusted EBITA 2,434.5 2,293.7 Adjusted EBITA Margin 15.5 % 15.6 % Non-GAAP Adjusted Net Income per Share – Diluted $ 8.06 $ 7.64 1) See notes on page 15 . RevenueRevenue in 2024 increased $996.9 million, or 6.8%, to $15,689.1 million. Worldwide revenue growth in 2024 compared to 2023 was led by an increase in organic revenue of $768.7 million, or 5.2%. Acquisition revenue, net of disposition revenue, increased revenue by $293.7 million, or 2.0%. The impact of foreign currency translation reduced revenue by 0.4%. Organic growth by discipline in 2024 compared to 2023 was as follows: 7.8% for Media & Advertising, 3.8% for Precision Marketing, 3.7% for Public Relations, and 15.4% for Experiential, partially offset by declines of 0.4% for Healthcare, 0.5% for Execution & Support, and 6.2% for Branding & Retail Commerce. Organic growth by region in 2024 compared to 2023 was as follows: 6.8% for the United States, 2.8% for Euro Markets & Other Europe, 3.8% for Asia Pacific, 2.7% for the United Kingdom, 17.2% for Latin America, and 5.2% for the Middle East & Africa, partially offset by a decline of 1.5% for Other North America. ExpensesOperating expenses increased $827.0 million, or 6.6%, to $13,414.5 million in 2024 compared to 2023. Included in operating expenses for 2024 are $57.8 million of repositioning costs, primarily reflecting severance actions related to ongoing efficiency initiatives including strategic agency consolidation in our smaller international markets and the start of our centralized production strategy. Included in operating expenses for 2023 is the net impact of the $78.8 million gain on disposition of certain of our research businesses in our Execution & Support discipline and $191.5 million of repositioning costs related to real estate and other exit charges and severance costs. Included in operating expenses in 2024 are $14.6 million of acquisition transaction costs related to the proposed acquisition of IPG. Included in operating expenses in 2023 are $14.5 million of acquisition transaction costs, primarily related to the acquisition of Flywheel Digital. Salary and service costs increased $731.3 million, or 6.8%, to $11,432.5 million. These costs tend to fluctuate with changes in revenue and are comprised of salary and related costs, which include employee compensation and benefits costs, freelance labor, third-party service costs, and third-party incidental costs. Salary and related costs increased $228.6 million, or 3.2%, to $7,441.4 million, primarily due to our acquisition of Flywheel Digital. Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. Third-party incidental costs that are required to be included in revenue primarily consist of client-related travel and incidental out-of-pocket costs, which are billed back to the client directly at our cost. Third-party service costs increased $430.7 million, or 14.8%, to $3,348.6 million, primarily as a result of organic growth in our Media & Advertising and Experiential disciplines. Third-party incidental costs increased $72.0 million, or 12.6%, to $642.5 million. Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $105.6 million, or 9.0%, to $1,274.4 million. The increase is primarily related to our acquisition activity during the year. Increased office and other related costs were partially offset by lower rent expense. SG&A expenses increased $14.4 million, or 3.7%, to $408.1 million, primarily due to professional fees related to strategic initiatives. Operating IncomeOperating income increased $169.9 million, or 8.1%, to $2,274.6 million in 2024 compared to 2023, and the related margin increased to 14.5% from 14.3%. Interest Expense, netNet interest expense in 2024 increased $35.2 million to $147.0 million compared to 2023. Interest expense increased $29.4 million to $247.9 million, primarily due to higher outstanding debt at higher rates, and interest income decreased primarily due to lower cash balances. In August 2024, we issued $600 million aggregate principal amount of 5.30% Senior Notes due 2034. Net proceeds from the offering, along with available cash, funded the $750 million repayment of our 3.65% Senior Notes due November 1, 2024. Income TaxesOur effective tax rate in 2024 was unchanged year-over-year at 26.3%. Net Income – Omnicom Group Inc. and Diluted Net Income per ShareNet income – Omnicom Group Inc. for 2024 increased $89.2 million, or 6.4%, to $1,480.6 million compared to 2023. Diluted shares outstanding for 2024 decreased 1.4% to 198.6 million from 201.4 million as a result of net share repurchases. Diluted net income per share of $7.46 increased $0.55, or 8.0%, from $6.91. Non-GAAP Adjusted Net Income per Share – Diluted for 2024 increased $0.42, or 5.5%, to $8.06 from $7.64. Non-GAAP Adjusted Net Income per Share – Diluted in 2024 excluded $120.7 million of after-tax amortization of acquired intangible assets and internally developed strategic platform assets, repositioning costs and acquisition transaction costs, and in 2023 excluded $204.2 million of after-tax amortization of acquired intangible assets and internally developed strategic platform assets, repositioning costs, and acquisition transaction costs, partially offset by the $55.9 million after-tax gain on the disposition of certain of our research businesses. We present Non-GAAP Adjusted Net Income per Share – Diluted to allow for comparability with the prior year period. EBITAEBITA increased $195.6 million, or 9.0%, to $2,362.1 million in 2024 compared to 2023, and the related margin increased to 15.1% from 14.7%. Adjusted EBITA increased $140.8 million, or 6.1%, to $2,434.5 million in 2024 compared to 2023, and the related margin decreased to 15.5% from 15.6%. EBITA and Adjusted EBITA excluded amortization of acquired intangible assets and internally developed strategic platform assets of $87.5 million and $61.8 million in 2024 and 2023, respectively. Adjusted EBITA for 2024 also excluded acquisition transaction costs of $14.6 million and $57.8 million of repositioning costs. Adjusted EBITA for 2023 also excluded acquisition transaction costs of $14.5 million, $78.8 million related to the gain on sale of subsidiary and $191.5 million of repositioning costs related to real estate and other exit charges and severance costs. Risks and UncertaintiesGlobal economic disruptions, including geopolitical events, international hostilities, acts of terrorism, public health crises, inflation or stagflation, tariffs and other trade barriers, central bank interest rate policies in countries that comprise our major markets and labor and supply chain challenges could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We monitor economic conditions closely, as well as 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 ChangeWe 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 such 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 CallOmnicom will host a conference call to review its financial results on Tuesday, February 4, 2025, starting at 4:30 p.m. Eastern Time. A live webcast of the call, along with the related slide presentation, will be available at Omnicom’s investor relations website, investor.omnicomgroup.com, and a webcast replay will be made available after the call concludes. Corporate ResponsibilityAt 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 OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. Non-GAAP Financial MeasuresWe 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. We believe these measures are useful in evaluating the impact of certain items on operating performance and allows for comparability between reporting periods. We define EBITA as earnings before interest, taxes, and amortization of acquired intangible assets and internally developed strategic platform 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 acquired intangible assets and internally developed strategic platform assets. 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 share – Omnicom Group Inc. – Diluted as additional operating performance measures. 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 StatementsCertain statements in this document contain 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: the risks relating to the pending Merger with IPG, including: that the Merger may not be completed in a timely manner or at all; delays, unanticipated costs or restrictions resulting from regulatory review of the Merger; uncertainties associated with the Merger may cause a loss of both companies’ management personnel and other key employees, and cause disruptions to both companies’ business relationships; the Merger Agreement subjects the Company and IPG to restrictions on business activities prior to the effective time of the Merger; the Company and IPG are expected to incur significant costs in connection with the Merger and integration; litigation risks relating to the Merger; the business and operations of both companies may not be integrated successfully in the expected time frame; the Merger may result in a loss of both companies’ clients, service providers, vendors, joint venture participants and other business counterparties; and the combined company may fail to realize all of the anticipated benefits of the Merger or fail to effectively manage its expanded operations; adverse economic conditions, including those caused by geopolitical events, international hostilities, acts of terrorism, public health crises, high and sustained inflation in countries that comprise our major markets, high interest rates, and labor 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 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; unanticipated changes to, or the ability to hire and retain key personnel; currency exchange rate fluctuations; reliance on information technology systems and risks related to cybersecurity incidents; effective management of the risks, challenges and efficiencies presented by utilizing Artificial Intelligence (AI) technologies and related partnerships in our business; changes in legislation or governmental regulations affecting the Company or its clients; risks associated with assumptions the Company makes in connection with its acquisitions, critical accounting estimates and legal proceedings; the Company’s international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions, and an evolving regulatory environment in high-growth markets and developing countries; 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 and in other documents filed from time to time with the Securities and Exchange Commission. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. ADDITIONAL INFORMATION ABOUT THE TRANSACTION WITH IPG AND WHERE TO FIND ITIn connection with the proposed transaction, Omnicom and IPG have filed a joint proxy statement with the SEC on January 17, 2025 and Omnicom has filed with the SEC a registration statement on Form S-4 on January 17, 2025 (File No. 333-284358) (“Form S-4”) that includes the joint proxy statement of Omnicom and IPG and that also constitutes a prospectus of Omnicom. Each of Omnicom and IPG may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the joint proxy statement/prospectus or registration statement or any other document that Omnicom or IPG may file with the SEC. The definitive joint proxy statement/prospectus have been mailed to stockholders of Omnicom and IPG. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT HAVE BEEN AND MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT OMNICOM, IPG AND THE PROPOSED TRANSACTION. Investors and security holders are able to obtain free copies of the registration statement and joint proxy statement/prospectus and other documents containing important information about Omnicom, IPG and the proposed transaction, through the website maintained by the SEC at http://www.sec.gov. Copies of the registration statement and joint proxy statement/prospectus and other documents (if and when available) filed with the SEC by Omnicom may be obtained free of charge on Omnicom’s website at https://investor.omnicomgroup.com/financials/sec-filings/default.aspx or, alternatively, by directing a request by mail to Omnicom’s Corporate Secretary at Omnicom Group Inc., 280 Park Avenue, New York, NY 10017. Copies of the registration statement and joint proxy statement/prospectus (if and when available) and other documents filed with the SEC by IPG may be obtained free of charge on IPG’s website at https://investors.interpublic.com/sec-filings/financial-reports or, alternatively, by directing a request by mail to IPG’s Corporate Secretary at The Interpublic Group of Companies, Inc., 909 Third Avenue, New York, NY 10022, Attention: SVP & Secretary. PARTICIPANTS IN THE SOLICITATIONOmnicom, IPG and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Omnicom, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Omnicom’s Annual Report on Form 10-K, including under the heading “Information About Our Executive Officers,” and proxy statement for Omnicom’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on March 28, 2024, including under the headings “Executive Compensation,” “Omnicom Board of Directors,” “Directors’ Compensation for Fiscal Year 2023” and “Stock Ownership Information.” To the extent holdings of Omnicom common stock by the directors and executive officers of Omnicom have changed from the amounts reflected therein, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 (“Form 3”), Statements of Changes in Beneficial Ownership on Form 4 (“Form 4”) or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 (“Form 5”), subsequently filed by Omnicom’s directors and executive officers with the SEC. Information about the directors and executive officers of IPG, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in IPG’s Annual Report on Form 10-K, including under the heading “Executive Officers of the Registrant,” and proxy statement for IPG’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 12, 2024, including under the headings “Board Composition,” “Non-Management Director Compensation,” “Executive Compensation” and “Outstanding Shares and Ownership of Common Stock.” To the extent holdings of IPG common stock by the directors and executive officers of IPG have changed from the amounts reflected therein, such changes have been or will be reflected on Forms 3, Forms 4 or Forms 5, subsequently filed by IPG’s directors and executive officers with the SEC. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, is contained in the registration statement and joint proxy statement/prospectus and other relevant materials filed or to be filed with the SEC regarding the proposed transaction when such materials become available. Investors and security holders should read the registration statement and joint proxy statement/prospectus carefully before making any voting or investment decisions. You may obtain free copies of any of the documents referenced herein from Omnicom or IPG using the sources indicated above. OMNICOM GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share amounts) Three Months Ended December 31, Full Year 2024 2023 2024 2023 Revenue $ 4,322.2 $ 4,060.9 $ 15,689.1 $ 14,692.2 Operating Expenses: Salary and service costs 3,143.8 2,954.0 11,432.5 10,701.2 Occupancy and other costs 320.5 290.9 1,274.4 1,168.8 Real estate and other repositioning costs1 — — 57.8 191.5 Gain on disposition of subsidiary1 — — — (78.8) Cost of services 3,464.3 3,244.9 12,764.7 11,982.7 Selling, general and administrative expenses 112.3 115.6 408.1 393.7 Depreciation and amortization 60.3 53.7 241.7 211.1 Total operating expenses 1 3,636.9 3,414.2 13,414.5 12,587.5 Operating Income 685.3 646.7 2,274.6 2,104.7 Interest Expense 65.0 52.6 247.9 218.5 Interest Income 26.9 25.8 100.9 106.7 Income Before Income Taxes and Income From Equity Method Investments 647.2 619.9 2,127.6 1,992.9 Income Tax Expense1 170.6 164.2 560.5 524.9 Income From Equity Method Investments 2.3 2.1 6.9 5.2 Net Income 1 478.9 457.8 1,574.0 1,473.2 Net Income Attributed To Noncontrolling Interests 30.9 32.1 93.4 81.8 Net Income – Omnicom Group Inc. 1 $ 448.0 $ 425.7 $ 1,480.6 $ 1,391.4 Net Income Per Share – Omnicom Group Inc.: Basic $ 2.28 $ 2.15 $ 7.54 $ 6.98 Diluted1 $ 2.26 $ 2.13 $ 7.46 $ 6.91 Dividends Declared Per Common Share $ 0.70 $ 0.70 $ 2.80 $ 2.80 Operating income margin 15.9 % 15.9 % 14.5 % 14.3 % Non-GAAP Measures: 4 EBITA2 $ 707.6 $ 663.3 $ 2,362.1 $ 2,166.5 EBITA Margin2 16.4 % 16.3 % 15.1 % 14.7 % EBITA – Adjusted1,2 $ 722.2 $ 677.8 $ 2,434.5 $ 2,293.7 EBITA Margin – Adjusted1,2 16.7 % 16.7 % 15.5 % 15.6 % Non-GAAP Adjusted Net Income Per Share – Omnicom Group Inc. – Diluted1,3 $ 2.41 $ 2.26 $ 8.06 $ 7.64 1) See Notes 3-5 on page 15. 2) See Note 6 on page 15 for the definition of EBITA. 3) Beginning with the first quarter of 2024, Adjusted Net Income per Share – Diluted excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets. We believe these measures are useful in evaluating the impact of these items on operating performance and allows for comparability between reporting periods. 4) See Non-GAAP reconciliations starting on page 12. OMNICOM GROUP INC. AND SUBSIDIARIES DETAIL OF OPERATING EXPENSES (Unaudited) (In millions) Three Months Ended December 31, Full Year 2024 2023 2024 2023 Revenue $ 4,322.2 $ 4,060.9 $ 15,689.1 $ 14,692.2 Operating Expenses: Salary and service costs: Salary and related costs 1,910.3 1,906.1 7,441.4 7,212.8 Third-party service costs1 1,054.8 884.0 3,348.6 2,917.9 Third-party incidental costs2 178.7 163.9 642.5 570.5 Total salary and service costs 3,143.8 2,954.0 11,432.5 10,701.2 Occupancy and other costs 320.5 290.9 1,274.4 1,168.8 Real estate and other repositioning costs3 — — 57.8 191.5 Gain on disposition of subsidiary3 — — — (78.8) Cost of services 3,464.3 3,244.9 12,764.7 11,982.7 Selling, general and administrative expenses 112.3 115.6 408.1 393.7 Depreciation and amortization 60.3 53.7 241.7 211.1 Total operating expenses 3,636.9 3,414.2 13,414.5 12,587.5 Operating Income $ 685.3 $ 646.7 $ 2,274.6 $ 2,104.7 1) Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. 2) 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. 3) See Notes 3-5 on page 15. OMNICOM GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (In millions) Three Months Ended December 31, Full Year 2024 2023 2024 2023 Net Income – Omnicom Group Inc. $ 448.0 $ 425.7 $ 1,480.6 $ 1,391.4 Net Income Attributed To Noncontrolling Interests 30.9 32.1 93.4 81.8 Net Income 478.9 457.8 1,574.0 1,473.2 Income From Equity Method Investments 2.3 2.1 6.9 5.2 Income Tax Expense 170.6 164.2 560.5 524.9 Income Before Income Taxes and Income From Equity Method Investments 647.2 619.9 2,127.6 1,992.9 Interest Expense 65.0 52.6 247.9 218.5 Interest Income 26.9 25.8 100.9 106.7 Operating Income 685.3 646.7 2,274.6 2,104.7 Add back: amortization of acquired intangible assets and internally developed strategic platform assets1 22.3 16.6 87.5 61.8 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) 1 $ 707.6 $ 663.3 $ 2,362.1 $ 2,166.5 Amortization of other purchased and internally developed software 4.7 4.8 18.1 18.5 Depreciation 33.3 32.3 136.1 130.8 EBITDA $ 745.6 $ 700.4 $ 2,516.3 $ 2,315.8 EBITA $ 707.6 $ 663.3 $ 2,362.1 $ 2,166.5 Real estate and other repositioning costs2 — — 57.8 191.5 Gain on disposition of subsidiary2 — — — (78.8) Acquisition transaction costs2 14.6 14.5 14.6 14.5 EBITA – Adjusted 1,2 $ 722.2 $ 677.8 $ 2,434.5 $ 2,293.7 Revenue $ 4,322.2 $ 4,060.9 $ 15,689.1 $ 14,692.2 Non-GAAP Measures: EBITA1 $ 707.6 $ 663.3 $ 2,362.1 $ 2,166.5 EBITA Margin1 16.4 % 16.3 % 15.1 % 14.7 % EBITA – Adjusted1,2 $ 722.2 $ 677.8 $ 2,434.5 $ 2,293.7 EBITA Margin – Adjusted1 16.7 % 16.7 % 15.5 % 15.6 % 1) See Note 6 on page 15 for the definition of EBITA. 2) See Notes 3-5 on page 15. The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to EBITDA, EBITA, and EBITA – Adjusted. We use EBITA and EBITA Margin as additional operating performance measures, which exclude the non-cash amortization expense of acquired intangible assets and internally developed strategic platform assets. The above table also presents Non-GAAP adjustments to EBITA to present EBITA – Adjusted for the periods presented. Accordingly, we believe EBITA, EBITA Margin, EBITA – Adjusted, and EBITA Margin – Adjusted are useful measures for investors to evaluate the comparability of the performance of our business year to year. OMNICOM GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (In millions) Three Months Ended December 31, Reported2024 Non- GAAP Adj. (1) Non- GAAP 2024 Adj. Reported2023 Non- GAAP Adj. (1) Non- GAAP 2023 Adj. Revenue $ 4,322.2 $ — $ 4,322.2 $ 4,060.9 $ — $ 4,060.9 Operating Expenses1 3,636.9 (14.6) 3,622.3 3,414.2 (14.5) 3,399.7 Operating Income 685.3 14.6 699.9 646.7 14.5 661.2 Operating Income Margin 15.9 % 16.2 % 15.9 % 16.3 % Full Year Reported2024 Non- GAAP Adj. (1) Non- GAAP 2024 Adj. Reported2023 Non- GAAP Adj. (1) Non- GAAP 2023 Adj. Revenue $ 15,689.1 $ — $ 15,689.1 $ 14,692.2 $ — $ 14,692.2 Operating Expenses1 13,414.5 (72.4) 13,342.1 12,587.5 (127.2) 12,460.3 Operating Income 2,274.6 72.4 2,347.0 2,104.7 127.2 2,231.9 Operating Income Margin 14.5 % 15.0 % 14.3 % 15.2 % Three Months Ended December 31, Full Year 2024 2023 2024 2023 NetIncome Net Income per Share- Diluted NetIncome Net Income per Share- Diluted NetIncome Net Income per Share- Diluted NetIncome Net Income per Share- Diluted Net Income – Omnicom Group Inc. – Reported $ 448.0 $ 2.26 $ 425.7 $ 2.13 $ 1,480.6 $ 7.46 $ 1,391.4 $ 6.91 Real estate and other repositioning costs1 — — — — 42.9 0.22 145.5 0.72 Gain on disposition of subsidiary1 — — — — — — (55.9) (0.28) Acquisition transaction costs1 13.1 0.07 13.0 0.07 13.1 0.06 13.0 0.06 Amortization of acquired intangible assets and internally developed strategic platform assets (after-tax)2 16.5 0.08 12.2 0.06 64.7 0.32 45.7 0.23 Non-GAAP Net Income – Omnicom Group Inc. – Adjusted 2,3 $ 477.6 $ 2.41 $ 450.9 $ 2.26 $ 1,601.3 $ 8.06 $ 1,539.7 $ 7.64 1) See Notes 3-5 on page 15. 2) Beginning with the first quarter of 2024, Adjusted Net Income per Share – Diluted excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets. We believe these measures are useful in evaluating the impact of these items on operating performance and allows for comparability between reporting periods. 3) Weighted-average diluted shares for the three months ended December 31, 2024 and 2023 were 198.4 million and 199.5 million, respectively. Weighted-average diluted shares for the years ended December 31, 2024 and 2023 were 198.6 million and 201.4 million, respectively. The above tables reconcile the GAAP financial measures of Operating Income, Net Income – Omnicom Group Inc., and Net Income per Share – Diluted to adjusted Non-GAAP financial measures of Non-GAAP Operating Income – Adjusted, Non-GAAP Net Income-Omnicom Group Inc. – Adjusted and Non-GAAP Adjusted Net Income per Share – Diluted. Management believes these Non-GAAP measures are useful for investors to evaluate the comparability of the performance of our business year to year. NOTES: 1) Net Income and Net Income per Share for Omnicom Group Inc. 2) See non-GAAP reconciliations starting on page 12. 3) For the twelve months ended December 31, 2024, operating expenses included $57.8 million ($42.9 million after-tax) of repositioning costs, primarily related to severance, recorded in the second quarter of 2024. Included in selling, general and administrative expenses in the fourth quarter of 2024 are acquisition transaction costs of $14.6 million ($13.1 million after-tax), related to the proposed merger with IPG. The net impact of these items reduced operating income for 2024 by $72.4 million ($56.0 million after-tax) and reduced diluted net income per share – Omnicom Group Inc. by $0.28. 4) There were no repositioning costs impacting the three months ended December 31, 2024 or the three months ended December 31, 2023. 5) For the twelve months ended December 31, 2023, operating expenses included real estate operating lease impairment charges, severance and other exit costs of $191.5 million ($145.5 million after-tax) related to repositioning actions we took in the first and second quarters of 2023 to reduce our real estate requirements, rebalance our workforce, and consolidate operations in certain markets. In addition, in the second quarter of 2023, we recorded a gain of $78.8 million ($55.9 million after-tax) on the disposition of certain of our research businesses in the Execution & Support discipline. Included in the fourth quarter of 2023 within selling, general and administrative expenses are acquisition transaction costs of $14.5 million ($13.0 million after-tax), primarily related to the purchase of Flywheel Digital in January 2024. The net impact of these items reduced operating income for 2023 by $127.2 million ($102.6 million after-tax) and reduced diluted net income per share – Omnicom Group Inc. by $0.50. 6) Beginning with the first quarter of 2024, we define EBITA as earnings before interest, taxes and amortization of acquired intangible assets and internally developed strategic platform assets. As a result, we reclassified the prior year periods to be consistent with the revised definition, which reduced EBITA from previously reported amounts.
Omnicom Schedules Fourth Quarter and Full Year 2024 Earnings Release and Conference Call Posted on January 28, 2025January 28, 2025 by Amanda Granath NEW YORK, Jan. 28, 2025 /PRNewswire/ — Omnicom (NYSE: OMC) will publish its fourth quarter and full year 2024 results on Tuesday, February 4, 2025 after the New York Stock Exchange close of trading. The company will also host a conference call to review such financial results on Tuesday, February 4, 2025, starting at 4:30 p.m. Eastern Time. A live webcast of the call will be available at Omnicom’s investor relations website, investor.omnicomgroup.com, along with the related earnings press release and slide presentation. A webcast replay will be made available after the call concludes. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. SOURCE Omnicom Group Inc.
CES 2025: The Technology Amplifiers Posted on January 24, 2025January 24, 2025 by Amanda Granath Each year, CES brings together innovators, decision makers, media, influencers, and visionaries to showcase breakthrough technologies and connect with the world’s most disruptive innovators. This year’s CES was a stage for groundbreaking advances from brands across sectors. Check out our highlights from the week below and learn how Omnicom showed up with a forward-thinking approach to explore the future of brand marketing. CES 2025 – The Technology Amplifiers (1)Download
Omnicom to Acquire Interpublic Group to Create Premier Marketing and Sales Company Posted on December 9, 2024December 9, 2024 by Amanda Granath The combined company will bring together unmatched capabilities, including the industry’s deepest bench of marketing talent, and the broadest and most innovative services and products, underpinned by the most advanced sales and marketing platform Together, Omnicom and Interpublic will be strongly positioned for continued growth in the new era of marketing The transaction is expected to be accretive to adjusted earnings per share for both Omnicom and Interpublic shareholders NEW YORK, December 9, 2024 – Omnicom (NYSE: OMC) and The Interpublic Group of Companies, Inc. (NYSE: IPG) (“Interpublic”) today announced their Boards of Directors have unanimously approved a definitive agreement pursuant to which Omnicom will acquire Interpublic in a stock-for-stock transaction. The combined company will bring together the industry’s deepest bench of marketing talent, and the broadest and most innovative services and products, driven by the most advanced sales and marketing platform. Together, the companies will expand their capacity to create comprehensive full-funnel solutions that deliver better outcomes for the world’s most sophisticated clients. Under the terms of the agreement, Interpublic shareholders will receive 0.344 Omnicom shares for each share of Interpublic common stock they own. Following the close of the transaction, Omnicom shareholders will own 60.6% of the combined company and Interpublic shareholders will own 39.4%, on a fully diluted basis. The transaction is expected to generate annual cost synergies of $750 million. The new Omnicom will have over 100,000 expert practitioners. The company will deliver end-to-end services across media, precision marketing, CRM, data, digital commerce, advertising, healthcare, public relations and branding. “This strategic acquisition creates significant value for both sets of shareholders by combining world-class, highly complementary data and technology platforms enabling new offerings to better serve our clients and drive growth,” said John Wren, Chairman & CEO of Omnicom. “Through this combination, we are poised to accelerate innovation and harness the significant opportunities created by new technologies in this era of exponential change. Now is the perfect time to bring together our technologies, capabilities, talent and geographic footprints to bring clients superior, data-driven outcomes. We are excited to welcome Philippe and the entire Interpublic team to the Omnicom family.” “This combination represents a tremendous strategic opportunity for our stakeholders, amplifying our investments in platform capabilities and talent as part of a more expansive network,” said Philippe Krakowsky, Interpublic’s CEO. “Our two companies have highly complementary offerings, geographic presence and cultures. We also share a foundational belief in the power of ideas, enabled by technology and data. By joining Omnicom, we are creating a uniquely comprehensive portfolio of services that will make us the most powerful marketing and sales partner in a world that’s changing at speed. We look forward to working with John and the entire Omnicom team.” Transaction Highlights Highly complementary assets create an unmatched portfolio of services and products that expands client opportunities for each company on day one Omnicom and Interpublic share highly complementary cultures and core values including a foundational belief in the power of ideas enabled by technology and data Creates an industry leading identity solution with the most comprehensive understanding of consumer behaviors and transactions, enabling us to deliver superior outcomes for our clients at scale and speed Advances our ability to continually innovate and develop new products and services, providing higher ROI on marketing spend Significant free cash flow provides greater capacity for internal investments and acquisitions Leadership & Governance John Wren will remain Chairman & CEO of Omnicom. Phil Angelastro will remain EVP & CFO of Omnicom. Philippe Krakowsky and Daryl Simm will serve as Co-Presidents and COOs of Omnicom. Krakowsky will also be Co-Chair of the Integration Committee post-merger. Three current members of the Interpublic Board of Directors, including Philippe Krakowsky, will be welcomed to the Omnicom Board of Directors. Transaction Details and Financial Profile[1] The transaction is expected to generate $750 million in annual cost synergies and be accretive to adjusted earnings per share for both Omnicom and Interpublic shareholders. Omnicom will have an attractive pro forma financial profile: Combined 2023 revenue of $25.6 billion, Adjusted EBITA of $3.9 billion and free cash flow of $3.3 billion Combined 2023 revenue of 57% U.S. and 43% International Strong balance sheet, commitment to investment grade rating with combined debt to EBITDA ratio of 2.1x before the benefit of synergies[2] Omnicom will continue its practice for use of free cash flow: dividends, acquisitions and share repurchases Both Omnicom and Interpublic will maintain their current quarterly dividend through the closing of the transaction The stock-for-stock transaction is expected to be tax-free to both Omnicom and Interpublic shareholders and is expected to close in the second half of 2025, subject to Omnicom and Interpublic shareholder approvals, required regulatory approvals, and other customary conditions. The combined company will retain the Omnicom name and trade under the OMC ticker symbol on the New York Stock Exchange. Advisors PJT Partners is serving as financial advisor to Omnicom. Latham & Watkins LLP is serving as legal advisor to Omnicom. Morgan Stanley is serving as financial advisor to Interpublic. Willkie Farr & Gallagher LLP is serving as legal advisor to Interpublic. Conference Call The companies will hold a conference call to discuss the transaction on Monday, December 9, 2024 at 8:30 a.m. Eastern Time. Live and archived webcasts, along with an accompanying investor presentation, will be available in the investor relations section of www.omnicomgroup.com and www.interpublic.com. About Omnicom Omnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. About IPG Interpublic (NYSE: IPG) (www.interpublic.com) is a values-based, data-fueled, and creatively-driven provider of marketing solutions. Home to some of the world’s best-known and most innovative communications specialists, IPG global brands include Acxiom, Craft, FCB, FutureBrand, Golin, Initiative, IPG Health, IPG Mediabrands, Jack Morton, KINESSO, MAGNA, McCann, Mediahub, Momentum, MRM, MullenLowe, Octagon, UM, Weber Shandwick and more. FORWARD-LOOKING STATEMENTS This communication contains certain “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements may be identified by words such as “anticipates,” “believes,” “could,” “continue,” “estimate,” “expects,” “intends,” “will,” “should,” “may,” “plan,” “predict,” “project,” “would” and similar expressions. Forward-looking statements are not statements of historical fact and reflect Omnicom’s and IPG’s current views about future events. Such forward-looking statements include, without limitation, statements about the benefits of the proposed transaction involving Omnicom and IPG, including future financial and operating results, Omnicom’s and IPG’s plans, objectives, expectations and intentions, the expected timing and likelihood of completion of the proposed transaction, and other statements that are not historical facts, including the combined company’s ability to create an advanced marketing and sales platform, the combined company’s ability to accelerate innovation and enhance efficiency through the transaction, and the combined company’s plan on future stockholder returns. No assurances can be given that the forward-looking statements contained in this communication will occur as projected, and actual results may differ materially from those projected. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, without limitation, the ability to obtain the requisite Omnicom and IPG stockholder approvals; the risk that Omnicom or IPG may be unable to obtain governmental and regulatory approvals required for the proposed transaction (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); the risk that an event, change or other circumstance could give rise to the termination of the proposed transaction; the risk that a condition to closing of the proposed transaction may not be satisfied; the risk of delays in completing the proposed transaction; the risk that the businesses will not be integrated successfully or that the integration will be more costly or difficult than expected; the risk that the cost savings and any other synergies from the proposed transaction may not be fully realized or may take longer to realize than expected; the risk that any announcement relating to the proposed transaction could have adverse effects on the market price of Omnicom’s or IPG’s common stock; the risk of litigation related to the proposed transaction; the risk that the credit ratings of the combined company or its subsidiaries may be different from what the companies expect; the diversion of management time from ongoing business operations and opportunities as a result of the proposed transaction; the risk of adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; adverse economic conditions; losses on media purchases and production costs; reductions in spending from Omnicom or IPG clients, a slowdown in payments by such clients, or a deterioration or disruption in the credit markets; risks related to each company’s ability to attract new clients and retain existing clients; changes in client advertising, marketing, and corporate communications requirements; failure to manage potential conflicts of interest between or among clients of each company; unanticipated changes related to competitive factors in the advertising, marketing, and corporate communications industries; unanticipated changes to, or any inability to hire and retain key personnel at either company; currency exchange rate fluctuations; reliance on information technology systems and risks related to cybersecurity incidents; risks and challenges presented by utilizing artificial intelligence technologies and related partnerships; changes in legislation or governmental regulations; risks associated with assumptions made in connection with critical accounting estimates and legal proceedings; risks related to international operations; risks related to environmental, social, and governance goals and initiatives; and other risks inherent in Omnicom’s and IPG’s businesses. All such factors are difficult to predict, are beyond Omnicom’s and IPG’s control, and are subject to additional risks and uncertainties, including those detailed in Omnicom’s annual report on Form 10-K for the year ended December 31, 2023, quarterly reports on Form 10-Q, and current reports on Form 8-K that are available on its website at https://investor.omnicomgroup.com/financials/sec-filings/default.aspx and on the SEC’s website at http://www.sec.gov, and those detailed in IPG’s annual report on Form 10-K for the year ended December 31, 2023, quarterly reports on Form 10-Q and current reports on Form 8-K that are available on IPG’s website at https://investors.interpublic.com/sec-filings/financial-reports and on the SEC’s website at http://www.sec.gov. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made. Neither Omnicom nor IPG undertakes any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. NO OFFER OR SOLICITATION This communication is not intended to be, and shall not constitute, an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended. IMPORTANT ADDITIONAL INFORMATION WILL BE FILED WITH THE SEC In connection with the proposed transaction, Omnicom and IPG intend to file a joint proxy statement with the SEC and Omnicom intends to file with the SEC a registration statement on Form S-4 that will include the joint proxy statement of Omnicom and IPG and that will also constitute a prospectus of Omnicom. Each of Omnicom and IPG may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the joint proxy statement/prospectus or registration statement or any other document that Omnicom or IPG may file with the SEC. The definitive joint proxy statement/prospectus (if and when available) will be mailed to stockholders of Omnicom and IPG. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT OMNICOM, IPG AND THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the registration statement and joint proxy statement/prospectus (if and when available) and other documents containing important information about Omnicom, IPG and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the registration statement and joint proxy statement/prospectus (if and when available) and other documents filed with the SEC by Omnicom may be obtained free of charge on Omnicom’s website at https://investor.omnicomgroup.com/financials/sec-filings/default.aspx or, alternatively, by directing a request by mail to Omnicom’s Corporate Secretary at Omnicom Group Inc., 280 Park Avenue, New York, New York 10017. Copies of the registration statement and joint proxy statement/prospectus (if and when available) and other documents filed with the SEC by IPG may be obtained free of charge on IPG’s website at https://investors.interpublic.com/sec-filings/financial-reports or, alternatively, by directing a request by mail to IPG’s Corporate Secretary at The Interpublic Group of Companies, Inc., 909 Third Avenue, New York, NY 10022, Attention: SVP & Secretary. PARTICIPANTS IN THE SOLICITATION Omnicom, IPG and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Omnicom, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Omnicom’s annual report on Form 10-K for the year ended December 31, 2023, including under the heading “Information About Our Executive Officers,” and proxy statement for Omnicom’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on March 28, 2024, including under the headings “Executive Compensation,” “Omnicom Board of Directors,” “Directors’ Compensation for Fiscal Year 2023” and “Stock Ownership Information.” To the extent holdings of Omnicom common stock by the directors and executive officers of Omnicom have changed from the amounts reflected therein, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3 (“Form 3”), Statements of Changes in Beneficial Ownership on Form 4 (“Form 4”) or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 (“Form 5”), subsequently filed by Omnicom’s directors and executive officers with the SEC. Information about the directors and executive officers of IPG, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in IPG’s annual report on Form 10-K for the year ended December 31, 2023, including under the heading “Executive Officers of the Registrant,” and proxy statement for IPG’s 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 12, 2024, including under the headings “Board Composition,” “Non-Management Director Compensation,” “Executive Compensation” and “Outstanding Shares and Ownership of Common Stock.” To the extent holdings of IPG common stock by the directors and executive officers of IPG have changed from the amounts reflected therein, such changes have been or will be reflected on Forms 3, Forms 4 or Forms 5, subsequently filed by IPG’s directors and executive officers with the SEC. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the registration statement and joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors and security holders should read the registration statement and joint proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of any of the documents referenced herein from Omnicom or IPG using the sources indicated above. [1] Combined 2023 results are arithmetic sums, not pro forma amounts presented in accordance with Article 11 of Regulation S-X. [2] Pro forma to exclude Omnicom’s $750 million note maturity repaid in November 2024.
Omnicom Declares Dividend Posted on December 5, 2024December 5, 2024 by Amanda Granath NEW YORK, Dec. 5, 2024 /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 January 10, 2025 to Omnicom common shareholders of record at the close of business on December 20, 2024. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. SOURCE Omnicom Group Inc.
New Independent Research Names Omnicom Media Group a Leader Posted on November 13, 2024November 13, 2024 by Amanda Granath As Reference Customers Note the Group’s Transparent Business Practices, Trustworthy Relationships and Strength of Omni Technology for Media and Business Intelligence Report: “Ten Years of Innovation Come Together in Its Comprehensive Omni Platform…” NEW YORK, Nov. 13, 2024 /PRNewswire/ — Omnicom Media Group (OMG), the media services division of Omnicom (NYSE: OMC), has been named a “Leader” among global media management services providers in a new analysis from leading research and advisory firm Forrester. Published today, The Forrester Wave™: Media Management Services, Q4 2024 evaluated twelve significant global media management service providers against 22 criteria specific to current offering and strategy. Designed to help CMO professionals select the right provider for their needs, the report assesses the media groups under three designations: Leaders, Strong Performers, and Contenders. With the highest possible scores (5) across eight criteria Omnicom Media Group was one of only three of the 12 providers evaluated to receive designation as a “Leader”. Under the current offering category, OMG received 5/5 scores in criteria including Martech and Adtech Implementation, Media Responsibility, Principal- Based Buying, Content Production and Broadcast Buying. Additionally, OMG received the highest possible scores in three out of five of the criteria within the strategy category, including Innovation, Partner Ecosystem and Pricing Flexibility and Transparency. According to the evaluation,”Reference customers note the agency’s transparent business practices, trustworthy relationships, and strength of Omni technology for media and business intelligence.”1 (Omni is the open operating system that supports all Omnicom agencies.) Strategy and Capabilities Powered by Omni The Forrester report states that “OMG shines in its ability to carry audience intelligence through media planning, buying, and activation – and into scaled, near-real-time creative campaigns,”2 and also notes that “OMG and Omnicom Group’s 10 years of innovation come together in its comprehensive Omni platform, which contains media planning tools, an AI-powered assistant, first- and third-party data, and end-to-end marketing orchestration capabilities, including a creative sandbox.”3 OMG also credits Omni for enabling the group to leverage the full range of Omnicom’s commerce capabilities described in The Forrester Wave™:Commerce Services, Q2 2024 that “help clients build a total commerce experience…”4 In that report, OMG’s parent company – which acquired digital commerce powerhouse Flywheel at the beginning of the year – received the highest possible scores in the commerce strategy, vision, innovation, retail media, platforms, data/analytics/AI, online retail and marketplaces, in-store services and partner ecosystem criteria – capabilities that OMG activates through its Agency as a Platform model that enables OMG agencies to draw talent, tools and technology from across the entirety of the OMG and Omnicom networks. Technology, Transparency and Trust “Marketers have many reference points – such as new business rankings, creative awards and effectiveness ratings – that offer a benchmark for which media groups are leading the industry, but the Forrester Wave stands alone in providing depth of insight into why a group is a leader,” said OMG CEO Floran Adamski. “And we believe this latest report suggests Omni is a big part of the “why” behind OMG’s success. It is the engine for our Agency as a Platform approach that enables OMG agencies to purposefully build flexible ecosystems of talent, capabilities, and technology drawn from across the group and all of Omnicom – connecting media, content, and commerce to drive transformative growth for our clients. Omni makes OMG – currently the #1 media group for total new business YTD, with the two top scoring media agencies at Cannes, and the highest scoring media group on the Effie Index – a “Leader”. Summing up what he sees as the report’s key message for marketers, Adamski said, “Our clients say it best – OMG delivers the technology they demand, the transparency they deserve and the trust they need from their media investment partner. Meeting those mandates – every day – is the core mission of our 26,000 people working around the globe to drive business growth for OMG clients.” Receiving Forrester’s designation as a “Leader” is the latest in a streak of good news for Omnicom Media Group, which in September was awarded the lion’s share of one of the most hotly contested reviews of the year when Amazon named OMG its media agency of record for the Americas – a mega-win that followed the group’s retaining the global media assignment for Volkswagen Group and HP, expanding its remit from Gap Inc. and being named media AOR for Priceline, HanesBrands Inc. and the David Yurman Company among others. Concurrent with growing its client roster, OMG has also continued to expand its partner ecosystem, announcing first-to-market partnerships with Google, TikTok, Amazon and Meta designed to bridge the gap between creators and commerce, driving better ROI across influencer channels.; and collaborations with Amazon, The Trade Desk, TikTok and Instacart designed to directly connect upper funnel media investments to sales. As of this writing and based on the most recent numbers reported in the COMvergence dashboards that provide a moment-in-time snapshot of the new business landscape, OMG’s YTD total new business record (wins-losses, including retentions) stands at $6.7 billion – approximately $2.6 billion more than its closest competitor. About Omnicom Media GroupOmnicom 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 26,000 people serving the world’s leading brands in OMG agencies around the globe. 1 The Forrester Wave: ™: Media Management Services, Q4 2024, page TBD2 The Forrester Wave: ™: Media Management Services, Q4 2024, page TBD3 The Forrester Wave™: Media Management Services, Q4 2024, page TBD4 The Forrester Wave™: Commerce Services, Q2 2024, page 8
OMD AGAIN NAMED BEST PERFORMING GLOBAL MEDIA NETWORK Posted on November 12, 2024November 12, 2024 by Amanda Granath Omnicom Media Group Agency Takes Top Slot in RECMA Diagnostics Report for Eighth Consecutive Edition, Reinforcing Its Lead in the Marketplace“OMD confirms its leadership, far ahead of its direct competitors” NEW YORK, Nov. 8, 2024 /PRNewswire/ — In the latest edition of the highly regarded Network Diagnostics report from RECMA (Research Company Evaluating the Media Agency Industry), Omnicom Media Group agency OMD Worldwide has been named the best performing global media network overall, marking the eight consecutive edition in which OMD had topped the Diagnostics report. The bi-annual RECMA Diagnostics report is based on the evaluation of 686 agencies in 45 markets. Utilizing 19 KPIs to evaluate vitality and structure, the report offers an assessment index that goes beyond typical quantitative metrics such as new business wins or billings volume alone to also consider criteria such as client portfolio and relationship stability; digital, data & content resources; and homogeneity across geographies. Participating agencies are ranked both numerically by “quali-points” and by the following profiles: Dominant, High Profile, Very Good Profile, Good Profile and Average Profile. In addition to earning the top ranking, OMD has widened the gap between its score and the second ranked agency to almost twice the spread between the second and eighth ranked agencies. Noting that OMD is the only agency among the 2021 top five to have increased its quali-share over the three-year period covered in the report – while it’s direct competitors have decreased – RECMA reiterates its declarations from the October 2023 and March 2024 diagnostic reports, saying “OMD has no direct competitor today” among global media agency networks, describing the network as “one strong leader” ahead of the agencies tied for second place and “a tight 7-agency pack.” Continuing that theme, RECMA describes OMD’s latest showing as “confirming its leadership, far ahead of its direct competitors.” Breaking down the KPIs, OMD earned #1 rankings for competitiveness in new business pitches; digital, data & content resources; client profile; and network homogeneity across geographies. Ranked #1 overall in EMEA and North America, OMD also earned “Dominant” rankings in nine local markets – the most of any network – including Australia, Germany, Greece, Italy, New Zealand, Peru, Singapore, Turkey and the UK. Distilling the data into a succinct take-away, RECMA concludes that “OMD is currently an unchallenged leader.” Commenting on another record-breaking showing, OMD Worldwide CEO George Manas says, “We’ve entered a new era of agency/client relationships in which the bar has been raised from transactional to transformational – and by that, I mean we must be partners in accelerating our clients’ business ambitions. As these results demonstrate, OMD – powered by the Omni open operating system and enabled by OMG’s Agency as a Platform model that connects media, content, and commerce – has the talent, tools, and technology to cross this higher bar, collaborating with our clients to co-create solutions that unlock growth and secure lasting competitive advantage.” The RECMA Network Diagnostics Report marks the latest in a streak of wins and accolades for OMD over the past year, including winning the $600 million media AOR assignment for Gap Inc.; earning Media Network of the Year honors at Cannes; being named Global Media Network of the Year by leading advertising trade publication Campaign; topping RECMA’s May 2024 Competitiveness in Pitches report; securing the highest ranking of any individual global media agency network on the Effie Index; and earning its seventh consecutive #1 ranking in the COMvergence 2023 Billings Report published in July 2024. About OMD OMD, an Omnicom Media Group agency, is the world’s largest media agency network with more than 12,000 people working in over 100 countries. Omnicom Media Group is the media services division of leading global marketing communications company Omnicom (NYSE: OMC). SOURCE OMD Worldwide
Omnicom Reports Third Quarter 2024 Results Posted on October 15, 2024October 16, 2024 by Amanda Granath Revenue of $3.9 billion, with organic growth of 6.5% Net income of $385.9 million Diluted earnings per share of $1.95; $2.03 Non-GAAP adjusted Operating income of $600.1 million; EBITA of $622.3 million and 16.0% margin NEW YORK, Oct. 15, 2024 /PRNewswire/ — Omnicom (NYSE: OMC) today announced results for the quarter ended September 30, 2024. “Omnicom delivered a strong quarter, with 6.5% organic revenue growth, and 7.9% EBITA growth. We did so while continuing to strengthen our organization by investing in talent, service capabilities, and technology platforms to enhance our client offerings,” said John Wren, Chairman and Chief Executive Officer of Omnicom. “Our cash flow improved, and we continued our very disciplined capital allocation. With exceptional new business wins and exciting new work for our clients, we expect to finish the year with strong momentum.” Third Quarter 2024 Results $ in millions, except per share amounts Three Months Ended September 30, 2024 2023 Revenue $ 3,882.6 $ 3,578.1 Operating Income 600.1 560.8 Operating Income Margin 15.5 % 15.7 % Net Income1 385.9 371.9 Net Income per Share – Diluted1 $ 1.95 $ 1.86 Non-GAAP Measures:2,3,4 EBITA6 622.3 576.5 EBITA Margin 16.0 % 16.1 % Adjusted EBITA 622.3 576.5 Adjusted EBITA Margin 16.0 % 16.1 % Non-GAAP Adjusted Net Income per Share – Diluted $ 2.03 $ 1.92 Notes 1-6, see page 10. RevenueRevenue in the third quarter of 2024 increased $304.5 million, or 8.5%, to $3,882.6 million. Worldwide revenue growth in the third quarter of 2024 compared to the third quarter of 2023 was led by an increase in organic revenue of $231.3 million, or 6.5%. Acquisition revenue, net of disposition revenue, increased revenue by $74.4 million, or 2.1%, primarily due to the Flywheel Digital acquisition in the Precision Marketing discipline during the first quarter of 2024. The impact of foreign currency translation was neutral. Organic growth by discipline in the third quarter of 2024 compared to the third quarter of 2023 was as follows: 9.4% for Advertising & Media, 35.3% for Experiential, 4.3% for Public Relations, 0.8% for Precision Marketing, and 0.3% for Execution & Support, partially offset by declines of 1.1% for Healthcare, and 5.4% for Branding & Retail Commerce. Organic growth by region in the third quarter of 2024 compared to the third quarter of 2023 was as follows: 6.5% for the United States, 10.9% for Asia Pacific, 6.8% for Euro Markets & Other Europe, 24.8% for the Middle East & Africa, 8.7% for Latin America, and 1.5% for Other North America, partially offset by a decline of 0.2% for the United Kingdom. ExpensesOperating expenses increased $265.2 million, or 8.8%, to $3,282.5 million in the third quarter of 2024 compared to the third quarter of 2023. Salary and service costs increased $209.5 million, or 8.1%, to $2,796.0 million. These costs tend to fluctuate with changes in revenue and are comprised of salary and related costs, which include employee compensation and benefits costs, freelance labor, third-party service costs, and third-party incidental costs. Salary and related costs increased $90.2 million, or 5.1%, to $1,846.9 million, primarily due to our acquisition of Flywheel Digital. Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. Third-party incidental costs that are required to be included in revenue primarily consist of client-related travel and incidental out-of-pocket costs, which are billed back to the client directly at our cost. Third-party service costs increased $105.7 million, or 15.6%, to $784.5 million, primarily as a result of organic growth in our Advertising & Media and Experiential disciplines. Third-party incidental costs increased $13.6 million, or 9.0%, to $164.6 million. Occupancy and other costs, which are less directly linked to changes in revenue than salary and service costs, increased $37.0 million, or 12.8%, to $325.6 million. The increase is primarily related to our acquisition activity during the year. Increased office and other related costs were partially offset by lower rent expense. SG&A expenses increased $9.7 million, or 10.8%, to $99.5 million, primarily due to professional fees related to strategic initiatives. Operating IncomeOperating income increased $39.3 million, or 7.0%, to $600.1 million in the third quarter of 2024 compared to the third quarter of 2023, and the related margin decreased to 15.5% from 15.7%. Interest Expense, netNet interest expense in the third quarter of 2024 increased $2.1 million to $40.4 million compared to the third quarter of 2023. Interest expense increased $12.9 million to $66.4 million, primarily due to higher outstanding debt, and interest income increased, primarily due to higher cash balances. In August 2024, we issued $600 million aggregate principal amount of 5.3% Senior Notes due 2034. Net proceeds from the offering, along with available cash, will be used to fund the $750 million repayment of our 3.65% Senior Notes due November 1, 2024. Income TaxesOur effective tax rate for the three months ended September 30, 2024 increased period-over-period to 26.8% from 26.0%. Net Income – Omnicom Group Inc. and Diluted Net Income per ShareNet income – Omnicom Group Inc. for the third quarter of 2024 increased $14.0 million, or 3.8%, to $385.9 million compared to the third quarter of 2023. Diluted shares outstanding for the third quarter of 2024 decreased 0.9% to 198.2 million from 199.9 million as a result of net share repurchases. Diluted net income per share of $1.95 increased $0.09, or 4.8%, from $1.86. Non-GAAP Adjusted Net Income per Share – Diluted for the third quarter of 2024 increased $0.11, or 5.7%, to $2.03 from $1.92. Non-GAAP Adjusted Net Income per Share – Diluted excluded $16.4 million and $11.6 million of after-tax amortization of acquired and internally developed strategic platform assets in the third quarters of 2024 and 2023, respectively. We present Non-GAAP Adjusted Net Income per Share – Diluted to allow for comparability with the prior year period. EBITAEBITA and Adjusted EBITA increased $45.8 million, or 7.9%, to $622.3 million in the third quarter of 2024 compared to the third quarter of 2023, and the related margin decreased to 16.0% from 16.1%. EBITA and Adjusted EBITA excluded amortization of acquired and internally developed strategic platform assets of $22.2 million and $15.7 million in the third quarters of 2024 and 2023, respectively. Risks and UncertaintiesCurrent global economic disruptions, including geopolitical events, international hostilities, acts of terrorism, public health crises, high and sustained inflation in countries that comprise our major markets, high interest rates, and labor and supply chain issues could cause economic uncertainty and volatility. The impact of these issues on our business will vary by geographic market and discipline. We monitor economic conditions closely, as well as 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 ChangeWe 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 such 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 CallOmnicom will host a conference call to review its financial results on Tuesday, October 15, 2024, starting at 4:30 p.m. Eastern Time. A live webcast of the call, along with the related slide presentation, will be available at Omnicom’s investor relations website, investor.omnicomgroup.com, and a webcast replay will be made available after the call concludes. Corporate ResponsibilityAt 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 OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. Non-GAAP Financial MeasuresWe 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. We believe these measures are useful in evaluating the impact of certain items on operating performance and allows for comparability between reporting periods. EBITA is defined as earnings before interest, taxes, and amortization of acquired intangible assets and internally developed strategic platform 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 acquired intangible assets and internally developed strategic platform assets. 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 share – Omnicom Group Inc. – Diluted as additional operating performance measures. 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 StatementsCertain statements in this document contain 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 geopolitical events, international hostilities, acts of terrorism, public health crises, high and sustained inflation in countries that comprise our major markets, high interest rates, and labor 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 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; unanticipated changes to, or the ability to hire and retain key personnel; currency exchange rate fluctuations; reliance on information technology systems and risks related to cybersecurity incidents; effective management of the risks, challenges and efficiencies presented by utilizing Artificial Intelligence (AI) technologies and related partnerships in our business; changes in legislation or governmental regulations affecting the Company or its clients; risks associated with assumptions the Company makes in connection with its acquisitions, critical accounting estimates and legal proceedings; the Company’s international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions, and an evolving regulatory environment in high-growth markets and developing countries; 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, 2023 and in other documents filed from time to time with the Securities and Exchange Commission. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. OMNICOM GROUP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share amounts) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue $ 3,882.6 $ 3,578.1 $ 11,366.9 $ 10,631.3 Operating Expenses: Salary and service costs 2,796.0 2,586.5 8,288.7 7,747.2 Occupancy and other costs 325.6 288.6 953.9 877.9 Real estate and other repositioning costs1 — — 57.8 191.5 Gain on disposition of subsidiary1 — — — (78.8) Cost of services 3,121.6 2,875.1 9,300.4 8,737.8 Selling, general and administrative expenses 99.5 89.8 295.8 278.1 Depreciation and amortization 61.4 52.4 181.4 157.4 Total operating expenses 1 3,282.5 3,017.3 9,777.6 9,173.3 Operating Income 600.1 560.8 1,589.3 1,458.0 Interest Expense 66.4 53.5 182.9 165.9 Interest Income 26.0 15.2 74.0 80.9 Income Before Income Taxes and Income From Equity Method Investments 559.7 522.5 1,480.4 1,373.0 Income Tax Expense1 150.2 136.1 389.9 360.7 Income From Equity Method Investments 0.4 1.9 4.6 3.1 Net Income 1 409.9 388.3 1,095.1 1,015.4 Net Income Attributed To Noncontrolling Interests 24.0 16.4 62.5 49.7 Net Income – Omnicom Group Inc. 1 $ 385.9 $ 371.9 $ 1,032.6 $ 965.7 Net Income Per Share – Omnicom Group Inc.: Basic $ 1.97 $ 1.88 $ 5.25 $ 4.84 Diluted1 $ 1.95 $ 1.86 $ 5.19 $ 4.78 Dividends Declared Per Common Share $ 0.70 $ 0.70 $ 2.10 $ 2.10 Operating income margin 15.5 % 15.7 % 14.0 % 13.7 % Non-GAAP Measures: 4 EBITA2 $ 622.3 $ 576.5 $ 1,654.5 $ 1,503.2 EBITA Margin2 16.0 % 16.1 % 14.6 % 14.1 % EBITA – Adjusted1,2 $ 622.3 $ 576.5 $ 1,712.3 $ 1,615.9 EBITA Margin – Adjusted1,2 16.0 % 16.1 % 15.1 % 15.2 % Non-GAAP Adjusted Net Income Per Share – Omnicom Group Inc. – Diluted1,3 $ 2.03 $ 1.92 $ 5.65 $ 5.39 1) See Notes 3-5 on page 10 regarding our repositioning actions. 2) See Note 6 on page 10 for the definition of EBITA. 3) Beginning with the first quarter of 2024, Adjusted Net Income per Share – Diluted excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets. We believe these measures are useful in evaluating the impact of these items on operating performance and allows for comparability between reporting periods. 4) See Non-GAAP reconciliations starting on page 8. OMNICOM GROUP INC. AND SUBSIDIARIES DETAIL OF OPERATING EXPENSES (Unaudited) (In millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenue $ 3,882.6 $ 3,578.1 $ 11,366.9 $ 10,631.3 Operating Expenses: Salary and service costs: Salary and related costs 1,846.9 1,756.7 5,531.1 5,306.7 Third-party service costs1 784.5 678.8 2,293.8 2,033.9 Third-party incidental costs2 164.6 151.0 463.8 406.6 Total salary and service costs 2,796.0 2,586.5 8,288.7 7,747.2 Occupancy and other costs 325.6 288.6 953.9 877.9 Real estate and other repositioning costs3 — — 57.8 191.5 Gain on disposition of subsidiary3 — — — (78.8) Cost of services 3,121.6 2,875.1 9,300.4 8,737.8 Selling, general and administrative expenses 99.5 89.8 295.8 278.1 Depreciation and amortization 61.4 52.4 181.4 157.4 Total operating expenses 3,282.5 3,017.3 9,777.6 9,173.3 Operating Income $ 600.1 $ 560.8 $ 1,589.3 $ 1,458.0 1) Third-party service costs include third-party supplier costs when we act as principal in providing services to our clients. 2) 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. 3) See Notes 3-5 on page 10 regarding our repositioning actions. OMNICOM GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (In millions) Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net Income – Omnicom Group Inc. $ 385.9 $ 371.9 $ 1,032.6 $ 965.7 Net Income Attributed To Noncontrolling Interests 24.0 16.4 62.5 49.7 Net Income 409.9 388.3 1,095.1 1,015.4 Income From Equity Method Investments 0.4 1.9 4.6 3.1 Income Tax Expense 150.2 136.1 389.9 360.7 Income Before Income Taxes and Income From Equity Method Investments 559.7 522.5 1,480.4 1,373.0 Interest Expense 66.4 53.5 182.9 165.9 Interest Income 26.0 15.2 74.0 80.9 Operating Income 600.1 560.8 1,589.3 1,458.0 Add back: amortization of acquired intangible assets and internally developed strategic platform assets1 22.2 15.7 65.2 45.2 Earnings before interest, taxes and amortization of intangible assets (“EBITA”) 1 $ 622.3 $ 576.5 $ 1,654.5 $ 1,503.2 Amortization of other purchased and internally developed software 4.3 4.6 13.4 13.7 Depreciation 34.9 32.1 102.8 98.5 EBITDA $ 661.5 $ 613.2 $ 1,770.7 $ 1,615.4 EBITA $ 622.3 $ 576.5 $ 1,654.5 $ 1,503.2 Real estate and other repositioning costs2 — — 57.8 191.5 Gain on disposition of subsidiary2 — — — (78.8) EBITA – Adjusted 1,2 $ 622.3 $ 576.5 $ 1,712.3 $ 1,615.9 Revenue $ 3,882.6 $ 3,578.1 $ 11,366.9 $ 10,631.3 Non-GAAP Measures: EBITA1 $ 622.3 $ 576.5 $ 1,654.5 $ 1,503.2 EBITA Margin1 16.0 % 16.1 % 14.6 % 14.1 % EBITA – Adjusted1,2 $ 622.3 $ 576.5 $ 1,712.3 $ 1,615.9 EBITA Margin – Adjusted1 16.0 % 16.1 % 15.1 % 15.2 % 1) See Note 6 on page 10 for the definition of EBITA. 2) See Notes 3-5 on page 10 regarding our repositioning actions. The above table reconciles the U.S. GAAP financial measure of Net Income – Omnicom Group Inc. to EBITDA, EBITA, and EBITA – Adjusted. We use EBITA and EBITA Margin as additional operating performance measures, which exclude the non-cash amortization expense of acquired intangible assets and internally developed strategic platform assets. The above table also presents Non-GAAP adjustments to EBITA to present EBITA – Adjusted for the periods presented. Accordingly, we believe EBITA, EBITA Margin, EBITA – Adjusted, and EBITA Margin – Adjusted are useful measures for investors to evaluate the comparability of the performance of our business year to year. OMNICOM GROUP INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited) (In millions) Three Months Ended September 30, Reported 2024 Non-GAAPAdj. Non-GAAP 2024 Adj. Reported 2023 Non-GAAP Adj. Non-GAAP2023 Adj. Revenue $ 3,882.6 $ — $ 3,882.6 $ 3,578.1 $ — $ 3,578.1 Operating Expenses 3,282.5 — 3,282.5 3,017.3 — 3,017.3 Operating Income 600.1 — 600.1 560.8 — 560.8 Operating Income Margin 15.5 % 15.5 % 15.7 % 15.7 % Nine Months Ended September 30, Reported 2024 Non-GAAP Adj. Non-GAAP 2024 Adj. Reported 2023 Non-GAAP Adj. (1) Non-GAAP 2023 Adj. Revenue $ 11,366.9 $ — $ 11,366.9 $ 10,631.3 $ — $ 10,631.3 Operating Expenses1 9,777.6 (57.8) 9,719.8 9,173.3 (112.7) 9,060.6 Operating Income 1,589.3 57.8 1,647.1 1,458.0 112.7 1,570.7 Operating Income Margin 14.0 % 14.5 % 13.7 % 14.8 % Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Net Income Net Income per Share- Diluted Net Income Net Income per Share- Diluted Net Income Net Income per Share- Diluted Net Income Net Income per Share- Diluted Net Income – Omnicom Group Inc. – Reported $ 385.9 $ 1.95 $ 371.9 $ 1.86 $ 1,032.6 $ 5.19 $ 965.7 $ 4.78 Real estate and other repositioning costs1 — — — — 42.9 0.22 145.5 0.72 Gain on disposition of subsidiary1 — — — — — — (55.9) (0.28) Amortization of acquired intangible assets and internally developed strategic platform assets (after-tax) 2 16.4 0.08 11.6 0.06 48.2 0.24 33.4 0.17 Non-GAAP Net Income – Omnicom Group Inc. – Adjusted 2,3 $ 402.3 $ 2.03 $ 383.5 $ 1.92 $ 1,123.7 $ 5.65 $ 1,088.7 $ 5.39 1) See Notes 3-5 on page 10 regarding our repositioning actions. 2) Beginning with the first quarter of 2024, Adjusted Net Income per Share – Diluted excludes after-tax amortization of acquired intangible assets and internally developed strategic platform assets. We believe these measures are useful in evaluating the impact of these items on operating performance and allows for comparability between reporting periods. 3) Weighted-average diluted Shares for the three months ended September 30, 2024 and 2023 were 198.2 million and 199.9 million, respectively. Weighted-average diluted shares for the nine months ended September 30, 2024 and 2023 were 198.9 million and 202.0 million, respectively. The above tables reconcile the GAAP financial measures of Operating Income, Net Income – Omnicom Group Inc., and Net Income per Share – Diluted to adjusted Non-GAAP financial measures of Non-GAAP Operating Income – Adjusted, Non-GAAP Net Income-Omnicom Group Inc. – Adjusted and Non-GAAP Adjusted Net Income per Share – Diluted. Management believes these Non-GAAP measures are useful for investors to evaluate the comparability of the performance of our business year to year. NOTES: 1) Net Income and Net Income per Share for Omnicom Group Inc. 2) See non-GAAP reconciliations starting on page 8. 3) For the nine months ended September 30, 2024, operating expenses include $57.8 million ($42.9 million after-tax) of repositioning costs, primarily related to severance, which reduce diluted net income per share- Omnicom Group Inc. by $0.22. There were no repositioning costs for the three months ended September 30, 2024. 4) There were no repositioning costs impacting the three months ended September 30, 2023. 5) For the nine months ended September 30, 2023, operating expenses included real estate operating lease impairment charges, severance, and other exit costs of $191.5 million ($145.5 million after-tax) related to repositioning actions we took in the first and second quarters of 2023 to reduce our real estate requirements, rebalance our workforce, and consolidate operations in certain markets. In addition, in the second quarter of 2023, we recorded a gain of $78.8 million ($55.9 million after tax) on disposition of certain of our research businesses in the Execution & Support discipline. The net impact of these actions reduced diluted net income per share- Omnicom Group Inc. by $0.44. 6) Beginning with the first quarter of 2024, EBITA is defined as earnings before interest, taxes and amortization of acquired intangible assets and internally developed strategic platform assets. As a result, we reclassified the prior year periods to be consistent with the revised definition, which reduced EBITA from previously reported amounts.
Omnicom Schedules Third Quarter 2024 Earnings Release and Conference Call Posted on October 8, 2024 by Amanda Granath NEW YORK, Oct. 8, 2024 /PRNewswire/ — Omnicom (NYSE: OMC) will publish its third quarter 2024 results on Tuesday, October 15, 2024 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 15, 2024, starting at 4:30 p.m. Eastern Time. A live webcast of the call will be available at Omnicom’s investor relations website, investor.omnicomgroup.com, along with the related earnings press release and slide presentation. A webcast replay will be made available after the call concludes. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com.
Omnicom Acquires LeapPoint, Creating Leading End-to-End Content Supply Chain Solution Posted on September 27, 2024September 27, 2024 by Amanda Granath NEW YORK, Sept. 27, 2024 /PRNewswire/ — Omnicom (NYSE: OMC) today announced its precision marketing division, Omnicom Precision Marketing Group (OPMG), acquired LeapPoint, a digital advisory firm focused on helping organizations improve the orchestration and performance of their entire marketing lifecycle. The move is part of OPMG’s strategic efforts to offer the industry’s most comprehensive end-to-end content solution, empowering marketers to accelerate workflows and deliver personalized experiences to their customers at speed and scale. Led by Co-Founder and CEO Nik DeBenedetto, LeapPoint helps Fortune 1000 enterprises optimize the performance of their marketing organizations by strategically integrating people, processes and Adobe technology. As an Adobe Gold Solution Partner, LeapPoint has deep expertise across Adobe Experience Cloud, with a particular focus on Adobe Workfront, Fusion and the rest of Adobe’s Content Supply Chain product offerings. The company’s services streamline and automate workflows, break down operational silos, and improve team collaboration. LeapPoint empowers creatives and marketers to work together with generative AI to minimize manual work and maximize creative output, providing them with valuable information needed to generate on-brand content at scale. “LeapPoint’s outstanding depth of expertise across the Adobe Content Supply Chain, and Workfront specifically, makes them a vital strategic addition for Omnicom,” said Luke Taylor, CEO of OPMG. “LeapPoint is an expert in delivering the process optimisation, workflow automation and technology integrations critical to the implementation of a modern marketing operating model. This acquisition therefore not only strengthens our existing content supply chain capabilities, but also further positions OPMG as a leader in the digital transformation space.” “I am thrilled about the positive impact that joining Omnicom Precision Marketing Group will have on the next phase of growth for LeapPoint,” said DeBenedetto. “We look forward to scaling our ability to provide our customers with unparalleled content supply chain expertise, enabling rapid delivery and effective management of content at scale. As a result, our customers can deploy exceptional employee experiences while delivering on consumers’ demands for personalized interactions and powerful brand experiences.” The acquisition builds upon Omnicom’s longstanding partnership with Adobe including being a Platinum Level Partner. Omnicom is a proud user of Adobe’s Content Supply Chain solution to connect the people, processes, and technology necessary to provide Omnicom’s specialized, integrated client services. “LeapPoint is unique in their ability to design and build modern operating models anchored on Adobe’s Content Supply Chain solution,” said Brent Rudewick, Head of Strategy and Product for Adobe GenStudio and Adobe Workfront. “Given our existing partnership with Omnicom, I am looking forward to expanding our relationship with Nik and his team.” About Omnicom Precision Marketing GroupOmnicom Precision Marketing Group (OPMG) orchestrates Omnicom’s global digital, data and CRM services to deliver precisely targeted and meaningful customer experiences at scale. Powered by world-class capabilities in technology and AI, as well as global partnerships with technology leaders like Adobe and Salesforce, our solutions span digital experience design and development, technology strategy and implementation, CRM / loyalty strategy and activation, innovation and service design, advanced data strategy and analytics, digital transformation, technical and business consulting and change management. At the core of our service model is a suite of connected data, content and decisioning tools, which we combine with a scaled global delivery network to drive tangible business outcomes while transforming client marketing operations. OPMG is a division of Omnicom Group Inc (NYSE: OMC). For more information, visit www.omcpmg.com. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. About LeapPointLeapPoint is a digital advisory firm focused on helping organizations connect their people, processes, and technology to improve orchestration across the entire marketing lifecycle. As an Adobe Gold Solution Partner, LeapPoint’s expertise spans the entire Adobe Experience Cloud ecosystem. The company’s certified consultants have delivered more than 600,000 hours of Adobe-related implementations and integrations and actively support hundreds of enterprise-level and Fortune 1000 clients. For more information, visit www.leappoint.com.
Andrew Robertson To Become Chairman Of BBDO Worldwide Posted on August 14, 2024August 23, 2024 by Amanda Granath Nancy Reyes Appointed President and CEO NEW YORK, Aug. 14, 2024 /PRNewswire/ — BBDO Worldwide announced today that Andrew Robertson, who has served as President and CEO since May 2004, will become Chairman on October 1st. Nancy Reyes will succeed him as President and CEO of BBDO Worldwide. Under his leadership, the network has been recognized as one of the most consistently creative and effective agencies in the world, garnering numerous industry accolades and setting a standard for creative excellence. BBDO was named Network of the Year at Cannes Lions a record-setting seven times and, in 2020, the first-ever Network of the Decade. Since 2005, BBDO has also been honored as Global Agency of the Year in Ad Age, Adweek and Campaign, was named Best of the Best by the World Advertising Research Center and has been recognized as the Most Effective Network in the world five times by the Global Effie Index. “We have been extremely lucky to have an industry titan at the helm of BBDO for over two decades,” said John Wren, Chairman and CEO of Omnicom. “Andrew’s passion for the business was felt by his people and clients alike, always hands on to ensure the network maintained its industry leading standards of creativity. We are grateful he will continue to guide the network in his new role as Chairman and are excited for Nancy to take the reins as CEO as she propels BBDO into the future.” Andrew was inducted to the AAF Hall of Fame in 2022 and has been named one of The 100 Most Influential Leaders in Marketing, Media and Tech, alongside the likes of Mark Zuckerburg, Tim Cook and Jeff Bezos. He has worked closely with many of the agency’s clients and been instrumental in some of its most notable new business wins, including, in recent years, The Home Depot, Enterprise Holdings, and Heineken. Nancy Reyes, who joined BBDO in October of last year, has an enviable track record for client growth and talent development. “When Nancy joined last year as CEO of The Americas, I’m sure it was clear to all what the plan was,” Robertson says. “In the time since, she has proven to be exactly what I expected – a decisive and fast-acting leader with a clear point of view on where we need to go as a network, resilience, a sense of humor, and a relentless drive to bring great work to our clients that drives their businesses. Nancy has made this decision very easy for me.” Nancy Reyes expressed her respect and admiration for Robertson: “I recognize I have some big shoes to fill. Andrew’s career and legacy is unparalleled – I am lucky he will be around to provide guidance and support to our clients, our teams and me. I am excited to have the opportunity to bring the beautiful community of BBDO together to design where we go from here. This is a fantastic agency with a very long runway ahead.” “I want to be clear. I have no plan to retire,” says Robertson. “As Chairman I will be here to help Nancy in whatever ways I can, to coach our people, and to work with our clients, something I have always loved doing.” About BBDO BBDO Worldwide is a global, full-service marketing communications agency network. At BBDO, our mantra is “The Work. The Work. The Work.” We believe passionately in the power of creativity to move people and therefore move brands and businesses towards growth. We’ve been around for 132 years and we still haven’t let the cement harden. That’s why, what matters to us is not what we have done but what we’re doing now and in the future. To keep forward momentum as we embark on another year of striving to be the most creative and effective agency in service of our clients and our people. BBDO is part of Omnicom (NYSE: OMC) (www.omnicomgroup.com). About Omnicom Omnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com.
Omnicom Prices $600 Million Senior Notes Offering Posted on July 30, 2024August 23, 2024 by Amanda Granath NEW YORK, July 30, 2024 /PRNewswire/ — Omnicom (NYSE: OMC) today announced the pricing of its public offering of $600 million aggregate principal amount of 5.300% Senior Notes due 2034 (the “Notes”). The Notes will mature on November 1, 2034. The transaction is expected to close on August 2, 2024, subject to the satisfaction of customary closing conditions. The Notes will not be listed on any securities exchange or included in any automated quotation system. The Notes will bear interest at a rate of 5.300 percent per annum. The Notes will be the unsecured and unsubordinated obligations of Omnicom and will rank equal in right of payment to all its existing and future unsecured senior indebtedness. Omnicom intends to use the net proceeds from the offering, along with available cash, to fund the repayment of its 3.65% Senior Notes due 2024 co-issued with Omnicom Capital Inc., which mature on November 1, 2024, of which $750 million aggregate principal amount was outstanding as of June 30, 2024. BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction to any person to whom it is unlawful to make an offer, solicitation or sale in such jurisdiction. The public offering is being made pursuant to an effective shelf registration statement that has been filed with the Securities and Exchange Commission (“SEC”). A final prospectus supplement related to the offering will be filed with the SEC and will be available on the SEC’s website at http://www.sec.gov. In addition, copies of the prospectus and prospectus supplement relating to the Notes offered in the offering may be obtained by contacting any of the following underwriters: BofA Securities, Inc. at 1-800-294-1322, Citigroup Global Markets Inc. at 1-800-831-9146, Deutsche Bank Securities Inc. at 1-800-503-4611 or Wells Fargo Securities, LLC at 1-800-645-3751. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. Forward-Looking StatementsCertain statements in this document contain 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 geopolitical events, international hostilities, acts of terrorism, public health crises, high and sustained inflation in countries that comprise our major markets, high interest rates, and labor 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 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; unanticipated changes to, or the ability to hire and retain key personnel; currency exchange rate fluctuations; reliance on information technology systems and risks related to cybersecurity incidents; effective management of the risks, challenges and efficiencies presented by utilizing Artificial Intelligence (AI) technologies and related partnerships in our business; changes in legislation or governmental regulations affecting the Company or its clients; risks associated with assumptions the Company makes in connection with acquisitions, its critical accounting estimates and legal proceedings; the Company’s international operations, which are subject to the risks of currency repatriation restrictions, social or political conditions, and an evolving regulatory environment in high-growth markets and developing countries; 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, 2023 and in other documents filed from time to time with the Securities and Exchange Commission. Except as required under applicable law, the Company does not assume any obligation to update these forward-looking statements. View original content:https://www.prnewswire.com/news-releases/omnicom-prices-600-million-senior-notes-offering-302210457.html SOURCE Omnicom Group Inc.
Omnicom Declares Dividend Posted on July 18, 2024August 19, 2024 by Amanda Granath NEW YORK, July 18, 2024 /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 11, 2024 to Omnicom common shareholders of record at the close of business on September 20, 2024. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. View original content to download multimedia:https://www.prnewswire.com/news-releases/omnicom-declares-dividend-302201111.html SOURCE Omnicom Group Inc.
Omnicom Launches ArtBotAI, Offering Clients the Industry’s Most Powerful Creative Engineering Solution Posted on July 10, 2024August 19, 2024 by Amanda Granath Powered by Omni, the platform expands Omnicom’s intelligent content offering NEW YORK, July 10, 2024 /PRNewswire/ — Omnicom today announced the launch of ArtBotAI, its next-generation intelligent content platform, which now leverages Gen AI large language models. ArtBotAI solves a common CMO dilemma: how to efficiently optimize creative digital content at scale without sacrificing quality. ArtBotAI’s intelligent content orchestration platform, leveraging Gen AI models powered by Omni, assembles clients’ digital assets, to create and deliver high-quality personalized experiences. “Elegance at scale—that was the original idea behind ArtBotAI,” said Paolo Yuvienco, Chief Technology Officer, Omnicom. “Brands are demanding more customized content at scale, but their content studios and one-off tools slow down, get more expensive, and lose out on quality and performance when they try to do more with them. There’s never been a core product that could integrate their creative assets, templates, MarTech, AdTech, AI, and first and third-party data. ArtBotAI replaces a messy ecosystem with something simple, beautiful and powerful to serve our client’s content needs.” ArtBotAI’s footprint stretches across North America, LATAM, EMEA and APAC. Alissa Hansen, Chief Product Officer, leads ArtBot and will oversee the global roll-out of ArtBotAI. “Our clients want to maximize the value of their content as well the precision and performance of their media investments,” said Hansen. “This meticulously crafted offering will allow us to do just that. With the ability to adapt to existing client technology and powered by Omni, ArtBotAI will use creative engineering to deliver scaled content of the highest quality and provide a 360 view of content performance.” As the next iteration, ArtBotAI embeds Gen AI capabilities into the platform to drive more efficiency and effectiveness when assembling clients’ content digital assets. Its Gen AI functionality comes from LLMs housed within Omni, which are a result of partnerships orchestrated at that enterprise level with the likes of Adobe, Amazon, Getty, Google and Microsoft (OpenAI). Its development is part of Omnicom’s strategy to infuse Gen AI into every facet of its business to make its people more effective, its operations more efficient and to drive transformative outcomes for clients. About OmnicomOmnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. View original content:https://www.prnewswire.com/news-releases/omnicom-launches-artbotai-offering-clients-the-industrys-most-powerful-creative-engineering-solution-302192549.html SOURCE Omnicom Group Inc.
Omnicom Schedules Second Quarter 2024 Earnings Release and Conference Call Posted on July 9, 2024August 19, 2024 by Amanda Granath NEW YORK, July 9, 2024 /PRNewswire/ — Omnicom (NYSE: OMC) will publish its second quarter results on Tuesday, July 16, 2024 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 16, 2024, starting at 4:30 p.m. Eastern Time. A live webcast of the call will be available at Omnicom’s investor relations website, investor.omnicomgroup.com, along with the related earnings press release and slide presentation. A webcast replay will be made available after the call concludes. About Omnicom Omnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. SOURCE Omnicom Group Inc.
Omnicom Cove at Cannes Lions 2024 Posted on June 30, 2024September 3, 2024 by Amanda Granath The Omnicom Cove returned to Cannes Lions International Festival of Creativity, the world’s most prestigious advertising awards. Omnicom colleagues, clients, and partners gathered at the Omnicom Cove to connect, collaborate, and celebrate for the second year. Each day we dove into provocative discussions around five main themes: AI, Content, Commerce and the New Consumer, Creativity, and Talent. Our expert speakers took the stage to announce partnerships, celebrate campaigns that are moving the industry forward, and inspire with state-of-the-art technology. Candid Cannes also returned with a reimagined show for 2024. We explored the story behind the strategy, invited guests to take part in the daily debate, dived into AI, built with brand leaders, and showcased the latest from our partners. Head to http://cannes.omnicomgroup.com to watch our sessions at the Cove and explore insights from the week below. OMC_A Look Back at Cannes Lions_2024Download Take a glimpse into some of our agencies incredible work featured at Cannes Lions 2024.
Omnicom Named World’s Most Effective Holding Group Posted on June 5, 2024August 19, 2024 by Amanda Granath NEW YORK, June 5, 2024 /PRNewswire/ — Omnicom (NYSE: OMC) has been named the Most Effective Holding Group in the 2023 Effie Index®, the 13th annual ranking of the companies behind the world’s most effective marketing initiatives. This is the second time within the past three years that Omnicom has received the coveted global title. As part of Omnicom’s strong performance, two of its agency networks placed in the top five of the Most Effective Agency Network category, with DDB Worldwide coming in second and BBDO Worldwide in fourth. AlmapBBDO (São Paulo) came out on top as the #1 Most Effective Agency Office globally. At the regional level, Omnicom was named the #1 Holding Group in both Europe and Latin America, coming in the top three for North America and APAC. In Latin America, BBDO Worldwide and DDB Worldwide secured the top two spots for agency network and AlmapBBDO took the #1 spot for agency office. “Creativity is always at our core, but to be extremely effective in today’s world, you must find bold ways to marry that with the latest data and technology. Winning this title is a testament to our people and clients around the world who are willing to try innovative ideas that push the industry forward and lead to strong results,” said John Wren, Chairman and CEO, Omnicom. “I want to thank our people across all regions for their commitment to effectiveness and for creating work that drives intelligent outcomes for our clients.” The Effie Index identifies and ranks the most effective agencies, marketers, brands, networks, and holding companies by analyzing more than 4,750 finalist and winning entries from eligible global, regional, and national Effie Awards competitions around the world. Announced annually, it is the most comprehensive global ranking of marketing effectiveness. “Successful marketing is built on a culture of effectiveness, and this effectiveness is at the core of the Global Effie Index,” said Traci Alford, Global CEO, Effie Worldwide. “The companies and agencies included in this year’s rankings have demonstrated continued agility and creativity in delivering success for their brands across the globe. Omnicom secured its position with strong performances worldwide, achieving a top 3 ranking across Europe and LATAM, North America and APAC Regions. I would like to congratulate all the agency networks and teams involved for their dedication to delivering ideas that work.” This ranking comes on the heels of several other 2023 industry accolades for Omnicom, including being named Holding Company of the Year by Ad Age, Cannes Lions, Gerety, MediaPost and The One Show. To learn more about the 2023 Effie Index®, visit effieindex.com. About Omnicom Omnicom (NYSE: OMC) is a leading provider of data-inspired, creative marketing and sales solutions. Omnicom’s iconic agency brands are home to the industry’s most innovative communications specialists who are focused on driving intelligent business outcomes for their clients. The company offers a wide range of services in advertising, strategic media planning and buying, precision marketing, retail and digital commerce, branding, experiential, public relations, healthcare marketing and other specialty marketing services to over 5,000 clients in more than 70 countries. For more information, visit www.omnicomgroup.com. About Effie® Effie leads, inspires and champions the practice and practitioners of marketing effectiveness globally. We work across 125 markets to deliver smart leadership, applicable insights, and the largest, most prestigious marketing effectiveness awards in the world. Winning an Effie has been a globally recognized symbol of outstanding achievement for over 50 years. We recognize the most effective brands, marketers, and agencies globally, regionally, and locally through our coveted effectiveness rankings, the Effie Index. Our ambition is to equip marketers everywhere with the tools, knowledge, and inspiration they need to succeed. For more details, visit effie.org. Effie Worldwide is a global 501c3 non-profit.